The alternative crypto funding platform AngelBlock has announced that the DeFi startup SOLA-X will be the first project seeking to raise funds on its novel protocol.
Crypto fundraising platforms provide a good opportunity for investors to get in early on some of the most promising new projects. By providing them with the initial capital they require to get their ideas off the ground, investors can obtain the native token of new projects ahead of anyone else and at much lower prices.
However, the crypto funding landscape is notoriously risky, as many projects fail to get traction, and there’s always the danger of falling victim to a rugpull or some similar scam. Looking to eliminate this risk as much as possible is AngelBlock, which has developed a unique milestone-based payout model along with some clever governance mechanisms that aim to deepen the involvement of investors.
The idea with AngelBlock’s model is that it helps to align the interests of both the project developers and the investors who are backing it financially. Under the model, projects seeking to raise money through AngelBlock are required to establish a series of milestones. Then, they unlock the capital pledged to them in stages, only when each milestone has been achieved and verified by investors.
To unlock the funds, the project builders must submit a deliverable, which will then be voted on by investors. If the community accepts the milestone has been reached, then great – the funds will be unlocked. But if the investors say no, the funds will remain locked up in a smart contract, and they can then point out to the team what needs to be done to satisfy them before the funds are made available.
To ensure fair voting, AngelBlock says it has created an option that allows teams to define the maximal voting power of a single owner, in order to safeguard against the disproportionate influence of large investors. So even if a single investor owns half of the project’s tokens, they won’t be able to swing the vote in their favor every time.
It’s these robust investor safeguards that saw AngelBlock included in International Business Time’s recent list of “cutting-edge European startups” to watch, but they’re not the only advantage of its platform. It’s also highly inclusive, with multiple investment tiers available depending on how many $THOL tokens investors are prepared to stake. First dibs goes to Tier-3 investors who stake 500K+ $THOL, followed by Tier-2, Tier-1 and Tier-0 investors, who aren’t required to stake anything to participate.
AngelBlock is kicking off with an intriguing project called SOLA-X, which is building a cross-chain DeFi hub with features around protocol-managed liquidity and arbitrage that aim to counter the problems of impermanent loss and low APY during a bear market.
With its novel, milestone-based payouts, built-in governance and an enticing project to kick off, we anticipate quite a bit of interest in AngelBlock’s first raise.