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Crypto investors love a bargain and they may well be getting a very good one in the shape of SOLA-X, which was recently selected as the first project to raise funds on a new platform called AngelBlock.
What’s more, it’s not just lower-priced tokens that investors will be getting if they invest in SOLA-X. They’ll also be able to play a more active role in the project’s development, thanks to a unique governance structure created by AngelBlock. With AngelBlock, the capital raised by each project is unlocked incrementally, only once certain milestones have been achieved.
Once the project’s developers say they have completed the necessary steps to unlock the next chunk of funding, investors will be able to vote on whether or not to release those funds from a smart contract. If they’re satisfied, they can vote “yes”, but if there’s something they’re not happy with they can vote “no” and send the team back to the drawing board.
It’s an extremely novel approach for a decentralized fundraising protocol but it’s also a very clever one, because the crypto funding space is notoriously risky for investors. There have been far too many rugpulls in the past for investors to invest with confidence in any project. By institution a milestone-based payout system, investors get the added security of knowing the project founders cannot just take their money and run.
“It’s an innovative idea that strives to protect the interests of investors and founders alike and is certainly welcome in a cryptocurrency industry that’s seen more than its fair share of scams,” International Business Times wrote in a recent roundup of promising European startups.
Investors get further benefits in the shape of AngelBlock’s zero-fee model, meaning the protocol doesn’t take a cut of whatever funds projects manage to raise. So investors know that every cent of their commitment will go towards building the actual project.
AngelBlock’s creative governance model indicates that it’s very serious about solving problems in the crypto funding space, and the recent news that it has been selected to join Aleph Zero’s Ecosystem Funding Program adds further to its credibility. The Aleph Zero Foundation is the organization responsible for developing the Aleph Zero blockchain and building up an ecosystem around it, and it said it sees AngelBlock as an ideal partner. Later this year, AngleBlock will open its funding platform to projects building on the Aleph Zero blockchain.
SOLA-X is a DeFi platform that will enable basic crypto trading and services such as lending and borrowing. The difference is that SOLA-X offers a unique, protocol-managed liquidity system that’s designed to help users achieve the best possible APY on their funds. SOLA-X’s fundraise will kick off in July, and is open to everyone, though investors who stake a certain amount of AngelBlock’s $THOL token will get earlier access.
Investors who don’t fancy SOLA-X can instead take a look at DeltaPrime, which has now been announced as the second project to raise on AngelBlock. It’s a Web3 lending protocol that automates much of the process for investors in an effort to extract maximum capital efficiency from their deposits.
Image source: AngelBlock
