I want to talk about i SEOs you know it was it's a big part of the interim ecosystem now that was not planned you know I was not planned to be that like such an important thing in the theorem it was more about the decentralized future and I co became a very big part at least in the last year for the ones who don't know me I build a few things which were relevant in this space and did a few things which you know kind of a cost that thing by accident especially the ICO that's why I feel obligated now to you know come up with something better proof on on what we had already what we have so we think about how a token work right tokens are a simple smart contract with an account balance in it and you simply ask the smart contract like what is my balance and you can send it a request to transfer your balance and he will do that if you are if you have to if you're allowed you know if it comes from the right origin so this is how tokens work which is also for many people outside of the same ecosystem in mystery by the way you know like things are very mixed up here with terminologies and what is a cryptocurrency what is a token and and how these things work so yeah the basic with tokens and aetherium you'll see 20 tokens there are in smart contract and they have an internal account balance list the great thing with this is and that really what led to the ICO boom is that this smart contract can talk to other smart contracts or another smart gonna con talk to this token smart contract and really this is on the end what made i ciose a thing really because we had an automated way of how we can receive funds and allocate ownership in the same process and that could be as simple as one transaction and that really what led people to make icos and in 2017 a lot of projects who are not necessarily any more decentralized let's say for better for worse but it also made a lot of people think now about toka economics you know we have now academia token engineering there we have a new field of research and all of those things and we also have a complete you know business world of IC or food service agencies and all of these things so a lot of things came out of that simple two-step process Isao smart contract plus token smart contract so the problem with the I SEOs is did you know a lot of people collected a lot of money and they were very happy after they collected the money and after they thought okay what exactly are the economy what is the economic behind my IC o---- what is the token and the problem also it led to that people got a lot of money and it might change your mind of the purpose of the project or even the purpose in life right like your Lambos rather than doing something useful yeah and that's a problem so it cannot create this imbalance between investors especially in 2017 where everybody kind of rushed in any random IC o---- it created this imbalance of like investors giving money it's just hoping to get on the next big train and the project is then funded and and really like you know pivots a lot in doing away and like sometimes maybe it's nowhere so how can we make this better how can we make this more fair you know how can we build this in such a way that actually these things can't happen or are less likely to happen Vitalik had actually an interesting proposal of the dike hole where he combined a Dow you know a voting system of people with an IC o---- and that's a very interesting idea and when a solid sound sounded interesting and especially it has this interesting thing of like flowing funds over time and you can increase the tab based on a vote and you can stop the flow also based on the vote and that was great that was a great idea I actually came up at the same time symbol with my concept to before I really looked in detail in this and it was this very similar idea the problem of this is that people don't vote as we have seen in the Dow and as we have seen of other things you know like people don't read either you know they also don't vote even if you give them a lot of good interfaces still you know this hurdle of you know like doing the action and if it's not really super important then you get probably like you ten percent of voters so how can we make this better and I had this idea in my head of how can this be improved over time and so on and I came up with the RICO concept which I later found out as the record here and criminal organizations act but you know the whole world is not American so that's fine I guess well you know I think it's great because we cause short rico means tasty in spanish and reversible you know you just add something in front of the ico so so the rico concept is basically exactly in the basic the same thing that floods funds flow over time like rather than based on milestones and on any kind of voting inside the community funds flat flow over time and the most important thing is everybody can choose at any point in time if it doesn't believe in the project anymore and i think this is really the most crucial part of that concept and why i think it will succeed is because the power lies within everybody themselves without that they have to agree with you know that peers or a bunch of strangers if like this is a good idea now or not because agreement you know that's like almost the most difficult thing most of the time in a very loose community so in this idea everybody can really just stop his committed funds from flowing to the project this could be an hour like that the project turned out not to be as good as you thought or you actually sent your funds and then you started scrolling down the website and realized oh that is a very different thing than what I thought you know especially in the formal times we kind of had that situation probably a lot of it so you always are in control of if you really support the project and this makes on the end the people really believe in the project stay in the project and everybody else you know can leave early and somebody else can come in and if you still believe in the project so this this I this principle is like based in three phases it can be actually only one phase really but I put it in three phases or in two phases mainly in different stages so this is the allocation phase the allocation face is basically when people give funds to the project or that basically they're not giving it to the project yet they're committing funds to the project and this point in time you know let's say let's say it's twenty days pay so you can commit your funds but you can always send back your tokens reverse your commitment basically always get go out with like zero risk except your gas cost right risk and probably had to fill out some kyc and upload some documents which we hopefully solve of identity and an automation to so we're back to the one transaction participation so this the allocation phase people participate by sending or committing funds locking them in a smart contract and then there's the distribution phase and this is the phase where the funds flow over time to the actual project which you know that the ICO and the good thing here is there's time you know in time solves most of time a lot of things and it gets more clarity along the way and it's a rather straightforward thing because you know how a long time you know how long it's like for example two years you can really count with that as we nicely can also count with the Bitcoin issuance you know can count the time flows in the same manner so in inside the distribution phase and this is the interesting part you are able to reverse or your fund funding new commitment so basically you are able to withdraw the funds you committed at any point in time and you do this by simply sending back your tokens and this can be as simple as dump of any wallet where I sent my funds from I can simply send my tokens whatever I got back and I'm like you know stop committing in the project the smart contact then has to calculate of how much time already passed how much of the funds already are allocated to the project itself and are with drawable by the project and how much of the funds you should get back and how much of the tokens you should keep because obviously if you waited in a period of two years you waited one year then at least you should keep half of your tokens because capably you get only half of your funds back and at some point either these are the native tokens of the project which have some kind of functionality in a smart contract system maybe they're you know security terms in the future which is like the big talk now or they are swappable to the actual project which is about to launch in the future we have seen many times that people do a blockchain and you know you basically want to allocate like who has committed how much it's kind of like an advanced excel sheet you know next time sheet when nobody even though the project owner can mean you played on it so if you look at it from the outside perspective it's really just simple like an allocation phase the distribution phase and inside the distribution phase is the possibility of withdraw and there's also the possibility of other people buying in so let's say you have a million tokens reserved for the process and only half get poured or let's say or get bored and then like half of those get returned during like one year or so something there again for sale and somebody else could buy them up what cut what probably will happen is that during the almost at the end of the time people were all formal in you know by whatever is left there the browser gets a big chunk of money in the last like minute or so that's something we have to see obviously and how how I approach this here is that this is a model based on one token so this token is purely your axis in your accounting mechanism to see how much you have committed and you could technically transfer that commitment or you could split that commitment and you could like send any kind of part back of whatever your tokens are and then keep only the part which is which you sent back and which is partial to that what is not refundable and there's two ways of how you can solve that either you create two tokens where you say one is refundable no and once you swap that you refund that if you get a part of the tokens of unrefined able tokens back or you can do this that you actually lock a part of your account balance inside the same token and the advantage of this is that you have only one token which if it's not refundable it's actually also not transferable so you would never end up in an exchange if it would be transferable and it works actually technically with every existing wallet the only problem is that these will not tell you what is you locked and what is your unlock balance and that's something you could probably look up then on another website and so on so the idea here is that if some people really fund that or other people didn't really fund and some people have a part of the balance locked another part of the balance which you can move and obviously if you try to transfer your log balance it which is throw if not you can just transfer your your log balance your your normal balance so this is two ways you can do it either through two tokens which can be confusing for certain project or you can do it to a lock balance the log balance obviously only works if this token is swappable at some point then it's only transferable in the case of if there's a swap event happening and until that you know you just keep it all you never refund and you keep yourself the option open and then you have good technically transfer them around so if you look at this in total it kind of looks like a Tesla a semi truck and so most of the project probably will get a base funding and I do a private sale which is not in that process and the reason for that is you have some sort of security and you're not completely reliant on a fluctuating part of money based on the formal and fat in the crypto space at the same that we have this allocation phase where there's like zero risk because in this moment you can always get out and then there is the dispersion process and that's for example is something which can happen over two years time so there's a long enough time which probably makes cams very unlikely because if you want to scam in two years at least it takes a lot of time and you might have have build it on the end what you promised so that's even reversing than scams and to building things in otherwise it's also allow us projects which might fail due to whatever reasons that they fail naturally without everybody like being left with nothing so that's that's kind of like the whole picture of how this can work and obviously that's a very simple this is a very simple simplification version you can make all kind of iterations and all kind of alterations how that could look like and you know if you look into current we see investing and it's rather very similar the difference here is it's automated and it also has the ownership automated and the good thing is that everybody can choose on its own and it doesn't have to ask anybody and he doesn't have to do anything besides you know taking out his wallet and you know sending his tokens back in the moment when he stops believing that's the whole project this is the whole idea which I would like to see be adopted in this space and what better process than doing this you know as my own with my own project so I'm working right now and a fashion lifestyle blockchain a basically industry-specific blockchain and we want to use exactly that model which is we have to obviously get the allowance you know from the regulator's if this is okay but I think the benefit here is that we are able to auto regulate on chain and build a system which is safe by design where people can actually participate in something with less risk than they have today rather than creating perspectives you know and in terms and agreements and stuff which everybody just clicks away and not smooth anyway and it doesn't really give any kind of like investor security for real right if people just invent invest in bad things then they just invest in bad things this gives you an option to always choose again if there was a good idea or not and I'm pretty confident that this will work out and when we see this work out once I'm pretty confident also that the other project will adopt that process if others adopt it and we are moving towards a self-regulation in our space I think which is extremely important that we show look things can be done in a better way and actually it brings more safety than creating huge liquid regulation froid frameworks and you know even more lawyer costs and even more slow processes because the whole point with the blockchain and why I SEOs are so successful is because it is easy you know that's really the main point that's all I have today for you so you mentioned you worked on energy 20 so is this another standard you're working so what if you want to use this now maybe if there's a standard that might help yeah so basically the idea is that on having a proposes as a standard yet we were obviously in the process of when we make our IC or our Rico we will like build the smart contracts out test it out over the course like shorter specifications we use and once we know that it really works and all the math works well then maybe I propose it as a sender's I mean I propose New Year's Eve 20 and other standards send us process are pretty slow and they take take time and so on I think like a good examples to show that it works you know and then we can discuss about standardizing things I mean yeah the concept it's rather simple you know or technically white paper also explaining the the exact specification how you do it but you know it's not the really complicated idea so everybody can probably just get cracking you know building it himself or destined self so do you think that it might change er the life of the project because of like people getting feared and just like taking it out because the price goes down or whatever so like it will be very difficult for project to kind of if it will be milestone based maybe but if it's just like time based so I probably it's not it's not obviously there can be many iterations on that concept right there can be my stone based but then you have the tricky problem of voting or Oracle or whoever you know decides whatever my sin was reached or not I think the the idea here is obviously if there is a private set in front that you gives you base funding which gives you some kind of like basis that you are not completely like without nothing at the same time if you are a good project I mean you know we have already brought you in this space who basically took the risk of keeping the ethers that for some work really well for some life didn't obviously based on the time when they did it I think we will see also fluctuation actually my gut feeling is that probably the pot would be or around 2/3 fluctuating maybe there's a fat moment where everything goes down but then it can also bounce up again there is a risk but I mean entrepreneurship is always every skin gender and so and and it brings this balance back between the community and the project I think this is very important and you can probably even have like a soft cap of whatever can be mean maybe like you know 20% of whatever you gives immediately not refundable I mean could be any kind of alterations based on what security the projects want on it and it's also based on the the size of the project for example if you start a whole ecosystem like a blockchain you know most of the time these projects collect a lot of money because they can be very large you know I can grow to a huge ecosystem at some point if it's just obviously you know I want to build this app and I want to collect here a million and then on the end it will be worth like 10 at some point it's a more risky model obviously right thanks you think that's all the time we have thank you for having these join me in thanking Fabien one more time you Back To Top