The day, people started paying for frozen yogurt with crypto

8 years after Laszlo Hanyecz paid 10,000 Bitcoins for 2 PapaJohn’s pizzas, 1,000 participants of the DAHO.AM Pure Tech Conference each paid 300 CrowdstartCoins XSC for conference T-shirts, goodie bags or frozen yogurt. 30 degrees Celsius and more made especially the frozen yohurt the most sought after food at the conference.

Datarella supported the organizational DAHO.AM team with looking for speakers, defining workshops and also with the more nitty gritty detail of a conference. Additionally, we launched our latest blockchain product at the conference, a cryptocurrency wallet, the XSC Wallet.

When opening the XSC Wallet, each DAHO.AM visitor got 1,000 XSC that enabled her to buy a t-shirt, a goodie bag and a frozen yogurt. Due to the tough conference schedule and summery temperature, many visitors asked other visitors who weren’t interested in goodie bags, to send them their XSC enabling them to buy another froyo. Sending and receiving crypto with tye XSC Wallet proved to be so easy that even the least technically educated (their words) experienced no problem at all managing their cryptocurrency.

Some visitors were hesitant to spend their XSC in the first instance, since they belong to the #HODL group – users who don’t spend their frypto but “Hold On for Dear Life”. But, after the Crowdstart team assured them that they woult get the same amount of XSC tokens they’d spend later this week in real ERC20 XSC tokens that are tradeable on the Ethereum mainnet, they went on a shopping tour.

The fascinating result of the XSC Wallet launch was the fact that all users were completely surprised how easy it is to pay for goods and food  with crypto  in real life. The payment process is easy to understand, fast, and makes so much fun that many visitors returned several times to the Crowdstart stand only to use the XSC Wallet and pay for stuff, again. For the Datarella team, this wasn’t really a surprise, but a very nice confirmation of our strong belief that crypto will play a major role in global payments soon.

CROWDVOTE – A Community Driven Decision Making Model To Compensate Blockchain Developers

CrowdstartCoin

Big news is coming up at Crowdstart: with CROWDVOTE we will provide a community driven opinion forming and decision making model that follows on the present centralized distribution model of CrowdstartCoins XSC.

Starting with our IOTA hackathon in Gdansk, in November 2017, we have distributed CrowdstartCoins XSC to over 2,000 developers who have added valuable code to the blockchain ecosystem. As promised, we at Crowdstart do not think that we are the best people to decide who is eligible to receive CrowdstartCoins XSC, but rather it should be the responsibility of the entire blockchain community to form opinions and make decisions that define the distribution of XSC.

CROWDVOTE to be launched at DAHOAM Tech Conference
We announced our plan of developing a liquid democracy model to enable that kind of a decentralized decision making process last November. Today, we are very happy to announce that we will launch the first version of CROWDVOTE at DAHOAM Tech Conference, on July, 24.

With CROWDVOTE, members of the blockchain community will be able to propose and vote for blockchain projects supporting them to receive their deserved CrowdstartCoins XSC. In the first version, there still  will be some centralized elements; e.g. there will be a set of rules that define the proposal and voting mechanism. A framework of rules has to be implemented from the start – otherwise the model would create more confusion than joy about the new decision making opportunities. Our plan, however, is to go further and also decentralise these aspects. In future versions of CROWDVOTE, the community will be able to define the rules for proposing and voting for projects by themselves.

Want to participate and help CROWDVOTE to be developed?

If you are generally interested in decentralise decision making processes and liquid democracy, please feel invited to participate and support the development of CROWDVOTE. Send us an email to crowdvote (at) crowdstart (dot) capital.

 

Phishing Attempt Using CrowdstartCoin Fake Twitter Account

CrowdstartCoin

Yesterday, it was brought to our attention that someone hs been impersonating our @CrowdstartCoin Twitter account using the handle „Crowdstart_Coin“ (with an underscore).

This fake account is ha,rd to distinguish from the real one since it‘s not only using a very similar heder but has been copying some of our original tweets. This account asks you for visiting a google form on which you are asked to send Ether to a specific address.

We at CrowdstartCapital would never ask anyone to send Ether to a soecufic address. We distribute our CrowdstartCoin to developers who add valuable code to the blockchin ecosystem.

Please be careful with all things crypto – especially if someone asksyou to provide your private key or to send crypto to an address.

 

CrowdstartCoin XSC Listed On ForkDelta Crypto Exchange

With ForkDelta, another decentralised crypto exchange makes CrowdstartCoin (XSC) tradable.

ForkDelta is a fork of decentralized exchange EtherDelta with an interesting roadmap to provide an enhanced user experience.

For individual users, this is big news.  It means a much more friendly user interface, better instructions for getting started and lower fees & gas costs due to the offchain order book. Take a look at ForkDelta and then get started buying and selling your XSC!

CrowdstartCoin XSC Token Listing – No Token Sale

CrowdstartCoin

There is no ICO token sale of Crowdstart Capital.

Since there are some ICO announcement sites that have not updated their information about Crowdstart Capital and CrowdstartCoin XSC, yet, here again, the update we originally published in November 2017:

In November 2107, we decided not to ICO but to distribute our CrowdstartCoins XSC to developers who add valuable code to the development of the blockchain ecosystem. We started to issue CrowdstartCoins to IOTA developers during our Gdansk hackathon in November 2017. As of today, we have issued about 500,000 CrowdstartCoins XSC to blockchain developers. You can keep track of the distribution on etherscan.

For the time being, we at Crowdstart Capital decide upon the distribution of CrowdstartCoins XSC. In the next step, we’ll use a semi-automated smart contract based process for issuing XSC. In a third phase, we will use a liquid feedback mechanism and invite blockchain community members to democratically decide upon who will be rewarded with CrowdstartCoins XSC.

Since December, CrowdstartCoins (XSC) have been listed on EtherDelta, since January on IDEX, two decentralized crypto exchanges (DEX). More exchanges will follow. You can manage CrowdstartCoins XSC with several wallets supporting the ERC20 standard, such as Lykke, myEtherWallet, or Blockwallet.

That said, there are two options to get hold of CrowdstartCoins XSC:

  • You are a developer and you feel eligible to receive XSC. Please fill out this form.
  • You visit one of the above-mentioned DEXes and trade XSC there.

We can’t predict future rates of CrowdstartCoin XSC. However, based on a very broad game-theoretical scenario, CrowdstartCoin XSc could reach a rate of somewhere between $1 – $10 in 2018.

If you have any questions regarding CrowdstartCoin XSC you may follow us on Twitter join our Slack or Telegram and we will be happy to have a conversation.

Cryptoexchange IDEX officially lists CrowdstartCoin XSC

As of 17  January 2018, CrowdstartCoin XSC is tradable on IDEX, a decentralized cryptoexchange.

We are very happy that, after EtherDelta, our blockchain incentive tokens have been officially listed on IDEX. From today, blockchain developers can even better grow the value of their own token that serves as a reward for contributing to the evolution of the blockchain ecosystem!

Don‘t waste your time, developers: Go, claim your XSC – and trade them!

Safely Manage CrowdstartCoins With Lykke Wallet

Good news for CrowdstartCoin on the last business day of the year 2017: As of today, CrowdstartCoins XSC can be safely stored in and managed with the mobile Lykke Wallet.

The Lykke Wallet is a mobile application for iOS and Android and the hub of the Lykke trading ecosystem. All assets, s.a. FX, Bitcoin, Ether, Solarcoin, etc., are traded on the open-source Lykke Exchange, with immediate settlement and margin trading at zero percent commission.

CrowdstartCoins XSC can be managed in Lykke’s private wallets, along other ERC20 tokens. We are very happy to recommend Lykke Wallet to all (potential) CrowdstartCoin holders, especially because of its impressively high usability and convincing security model. Buying crypto, for instance, is ultimately easy: just deposit Fiat money using your credit card. This process takes a minute or two, and you are ready to buy crypto.

We can‘t wait to see the first trades of CrowdstartCoins – we expect them to take place in early 2018. But for now, we are more than happy that CrowdstartCoin holders can use Lykke Wallet to safely manage their XSC!

Let‘s see what 2018 will bring!

What‘s The Value Of A CrowdstartCoin?

Crowdstart Coin

We started distributing CrowdstartCoins during the Gdansk IOTA hackathon in November this year. Each member of the three winning groups received their XSC, as CrowdstartCoins are abbreviated.

Since then we have been asked what the value of a CrowdstartCoin is. As of this writing, the value of 1 CrowdstartCoin is 0. XSC is listed on EtherDelta, a decentralized cryptoexchange, and it has been traded once – but that was a test trade in order to check whether everything is working fine.

348 Developers Rewarded With CrowdstartCoins

During the first weeks of distributing CrowdstartCoins, we have focused on rewarding developers who have added valuable code to the blockchain ecosystem. We have started to send XSC to IOTA and Ethereum developers. Other blockchain technologies will follow. As of this writing, 348 developers have received their CrowdstartCoins. Considering the very reason why we created Crowdstart Capital – namely to incentivize the future development of the blockchain ecosustem at-large, and to grow the number of developers committing code – 348 developers is quite a big number.

In the first phase, the distribution of CrowdstartCoins will be at the discretion of the Crowdstart team. In the second phase, we will set up a smart-contract-based system that will pay out CrowdstartCoins according to the accepted commits. We will programmatically monitor the git repos of major projects. In the third phase, members of the blockchain community will be able to suggest projects to be included in the incentive scheme, a model known as liquid feedback. Token-based ballots will be used to enable community voting and determine which blockchain projects should be included.

CrowdstartCoin might be worth $1-$10

Now you might ask, why do we put all this energy into CrowdstartCoins when they have 0 value? The answer is simple: We expect CrowdstartCoin’s value to rise as soon as a certain threshold of coin holders has been reached and somebody starts trading her CrowdstartCoins. We haven’t communicated our expectations regarding the value of CrowdstartCoins, yet. However, when deciding upon the number of distributed CrowdstartCoins relative to the code committed to the blockchain ecosystem, we expect a CrowdstartCoin rise in value to anywhere between $1-$10, probably within the next 12 months.

Not being in possession of the crystal ball, we could be dead wrong. Since there is no reliable method of forecasting the value of a new currency, and especially one that is not backed by any kind of asset, such as gold, the US-Dollar, etc., we base our assumption on the combined anticipated circulation supply and the expectations of blockchain developers regarding their fair remuneration when committing blockchain code.

The essence of CrowdstartCoin is to reward developers for their work. In the good tradition of Jean-Baptiste Say, we think developers will figure out the right price of a CrowdstartCoin themselves, trading the coins. Despite having some flaws, over the long run Say’s law is largely true.

We certainly don’t expect CrowdstartCoin to repeat Bitcoin’s history. But, 10,000 Bitcoins buying 2 pizzas in 2010 is a story too good not to recall!

CrowdstartCoin – A Currency Creates Sovereignty

We want blockchain technology to live up to its original concept: being and staying an open, free technology. We want to prevent blockchain technology from the fate of the internet, being corrupted by lobby groups who succeeded in persuading the U.S. government to abolish net neutrality in December 2017.

For millennia, sovereignty defined currency. Governments created curency and the currency allowed a government to execute its monopolistic control. Now, people create currency. And since currency creates sovereignty, the former equation has been inversed: economic freedom is no longer dependent on governments but can be exerted in a trans-national, self-determined way.

Blockchain developers of all sorts, be it Bitcoin maximalists, Ethereum proponents, IOTA tangle enthusiasts, Stellar developers or active supporters of currencies such as Monero, Dash, etc, – all of them will be awarded CrowdstartCoins for committing valuable code. Two weeks after having issued the first CrowdstartCoins to developers participating at the IOTA hackathon in Gdansk, CrowdstartCoins have been distibuted to over 125 developers, most of them working on IOTA and Ethereum.

CrowdstartCoin can become the currency of choice for all those who work on blockchain technology. When CrowdstartCoin is widely adopted in and used by the Blockchain community, its value supports the future development and the evolution of the Blockchain ecosystem at-large.

If you’re a developer who committed code to advance Blockchain technology at-large, you’ll be eligible to receive CrowdstartCoins. You can request CrowdstartCoins by filling out the Developer Incentive Program: Claim XSC Rewards form.

A Cryptoeconomic Approach For ICOing High-Yield, Stable Decentralized Networks – Two Token Model

On December 6, 2017, game company and distributor Valve announced that its gaming platform Steam is no longer accepting Bitcoin as a payment method. The company explained that Bitcoin transaction fees have gone up to nearly $20 per transaction last week, “compared to roughly $0.20 when we initially enabled Bitcoin.”

At the same time, CryptoKitties burned up 15% of Ethereum’s gas, causing a mid-level congestion and increasing in-game fees.

Since we have been working on some ICO projects over the last months, focusing on cryptoeconomics and token design, we felt the need for a model that would allow a high-yield return for investors on the one hand, whilst guaranteeing the stability and a proper functioning of the specific application(s) at the same time.

Two Token Model TTM Thesis
Decentralized networks need a token model that

  1. guarantees a stable cryptoeconomic mechanism to exchange assets, services, time and money between peers, and, at the same time,
  2. allows investors to reap large economic benefits, and, therefore
  3. allows an overall story of combining a cooperative/post-capitalist model with a pure capitalist play by technically separating both aspects through the representation of two dedicated tokens.

Proposed Solution

A) Two-Token Model

The network features 2 different types of tokens:
a) a core token (CT) that is tradable at crypto-exchanges,
b) an application token (AT) (per application)

CT
The only function of the CT is that of a currency. In all of the network’s potential applications, there is one overarching CT.

AT
The AT is designed depending on the respective application’s requirements. It is the only token that allows the usage of the respective application. It is not listed at any exchange. Potential listings of ATs probably could not be prevented technically, but by regulation: The network defines the listing of AT’s as not allowed and will exclude applications that behave otherwise. Organizers of applications that already have a token will be offered to exchange their tokens for AT. Additionally, they can be awarded CT depending on their applications’ asset values.

B) Token Issuance Mechanism

Initially, there will be two events that happen at the same time:

  • SAFT of CT to (accredited) investors
  • One-time distribution of (free) AT to interested potential network application users (comparable to a basic income)

The Token Story

A (revenue-driven, high-yield) SAFT will finance the development of the network and serve as the initial AT supply of the network. Within the first applications running, AT holders can earn additional AT, and, directly derived from that, additional CT. The intensity of use and supply of AT represents the intrinsic value of a CT.

This model of a clear, technical separation into  – and combination of – a speculative and an application part should serve the initially conflicting interests of both categories of the network‘s stakeholders: the potentially application-interested majority of AT holders and the potentially solely commercially driven and high-yield-driven investors who hold and trade the CT.

Every app token holder (ATH) will receive CT’s additionally to their AT’s, if the intensity of use of the application reaches a certain threshold. As long as the intensity of use is above this threshold, the ATH will receive additional CT’s, scaling with their intensity of use. When the intensity of use sinks below the threshold, there will be no CT’s awarded further on.

Definition of Intensity of Use IoU Criteria

As mentioned, ATH are being rewarded CT depending on their intensities of use of the application(s). There are several aspects of defining an “intensity of use (IoU)” in a good way. First, an ATH could use a specific application very frequently. This could add to her IoU. Then, the ATH could move huge assets within an application. Again, this could add to her IoU. Further on, an ATH could use an application in a way that leads to a higher IoU of another application. This would lead to trans-application elements of the IoU’s algorithm. Then, there are further aspects, s.a. hoarding/inflation, etc..

Model Attractiveness

The definition of the IoU algorithm is one key aspect of this token model. On the one hand, it seemingly is the most complex problem to solve for the network. On the other hand it offers the opportunity to create one single algorithm that is completely variable in design and can be tweaked throughout the lifespan of the network without any need for changing the structure.

Due to the fact that the AT is not tradable, and the IoU algorithm prevents the ATH from hoarding and other unintended use, it can be regarded as stable.

The CT, in turn, is a tradable token that entails no other rights than being exchangeable with other currencies. The prize of the CT will be defined by market forces alone. This pure market-driven nature of the CT, combined with the value(s) of ATs, makes the network’s model highly attractive for application-focused users, as well as for investors.

We have intensely discussed the TTM within our network, and we have not found severe weaknesses that could prove to become showstoppers. However, we invite you to prove otherwise! Please provide us with your feedback on TTM – thank you!