5 Questions from the investor for DApp TGE

If DApp prepares a whitepaper for ICO, you should be able to respond to the following investor questions:

(1) Market : Is the size of the participants enough to grow the value of the future ecosystem?

• A decentralized ecosystem can have a large number of participants, or a high number of participants, so that future token price increases can be expected, and therefore the market must be able to grow.

(2) Problem : How much of the current market problem is on a centralized platform and monopolize profits with a monopoly position?

• As in the case of Uber or AirBnB in the target market, there is a centralized platform and the higher the percentage of profit they take in the market, the more the value of decentralization is created.
• Thus, the extent to which existing entrepreneurs monopolize profit in a targeted market, and the higher the percentage of profits for which they have a monopoly, the greater the value that can be created through a distributed ecosystem.
• In the end, the bigger the issue of the current market, the more likely the market is, so the above TGE's token sale participants will also increase.

(3) Service structure : Does the decentralized transaction structure make value compared to existing centralized transactions?

• At the heart of DApp is the decentralized service architecture. Decentralized trading structures are needed versus existing centralized trading platforms.
• Most DApp will deal with one of "information", "product / service", "asset".
• Our DApp needs to create a secure, low-cost trading structure with only the transactions and infrastructure between the platform participants, without a central platform.
  So, if we create a trading platform with a "decentralized structure" in our target token ecosystem, and if it does not create value relative to an existing centralized platform - in other words, if it becomes less competitive - There is not. That is, "the tragedy of the common" may be more likely to occur.

(4) Company structure : Can ecosystem maintenance be in the form of "consensus" in the "market" without a specific "corporation"?

• There is a philosophical approach to change the concept of "corporation" that is basically made by ICO.
  In other words, a distributed ecosystem is not a corporation that works for the benefit of shareholders, but the whole of the participants is going to share the book and make a deal by an autonomous and democratic "consensus" like a cooperative.
• This is to create a decentralized trading structure that does not require an existing centralized "company," and not to create a "decentralized company."
• The philosophical keynote is consistent with the idea of ​​Eric Raymond, who advocates open software in 1997 The Cathedral and the Bazaar. In other words, "The Cathedral and the Bazaar" There was the logic that this software is an asset that everyone should share and that they can not be developed and owned by a company because they can be developed jointly. Now the distributed ecosystem model can be seen as an extension to the "company". In other words, there is a view that a market or a trading mechanism should not be owned by a single company, and that a monopolistic transaction is not transparent. Therefore, it is the view that the centralized company itself is not necessary by sharing the transaction book among the participants of the market itself and inducing direct deal.
• On the premise of such a tone, the question is whether the new DApp founder will be fit for this "philosophical basis".
• Exactly, this question is a challenge to the "company structure" itself, and the same "service structure" itself.
• This is why the token tokens should not have the attributes of the stock (voting rights, dividends, distribution rights), and will naturally avoid issues with securities laws.

(5) Design of token allocation: Is token allocation and future distribution designed to increase the value of tokens?

• Under the above philosophical basis, it becomes more obvious that tokens should not have stock-like attributes.
• However, tokens are a medium for trading in ecosystems, and also vehicles for expressing the market value of an ecosystem, so they can only act as intermediaries of "assets" within an ecosystem.
  Thus, if tokens are to be viewed as a whole ecosystem, the value of the "whole ecosystem" is expected to increase as the value of the company increases, and the value of the token will rise.
• To increase the value of a single token is one of two. The number of "contributors" in the token-based distributed ecosystem will increase, or the number of "transactions" will increase without increasing the number of participants, or the demand for tokens should increase as a result of either.
• Therefore, "Token economics" is needed, which is not merely a mind to distribute tokens, but a design for future direction and growth of token distribution.
• Also, the number of "tokens" should be set from the beginning and not arbitrarily increased. This rule is basically an "ecosystem power agreement". If the opinions of the participants on this rule are changed, they will eventually have to form a kind of "hard fork". This means making a different "ecosystem" rather than spraying.

At least if the founder who prepares the DAPP for the above questions does not give a clear opinion, there will be an interpretation that the preparation for TGE is inadequate.

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Michael Hwang, managing director, PlatformLabs Pte ltd.