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August 17 2017

ICO Alert Report: Godzillion

ICO Alert Report: Godzillion

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What is Godzillion?

Godzillion is a decentralized platform connecting startups and investors that operates on the Ethereum Blockchain using a token called GODZ. Godzillion allows small businesses to be voted on (“Yes” or “No”) to access a crowdfunding market, and to issue their startup tokens in exchange for GODZ. Investors vote on startups to earn economic incentives (GODZ tokens), then invest in these small businesses, and gain access to a secondary market where they can sell or buy more various startup tokens. In this secondary market (re: exchange) GODZ tokens can be exchanged for a startup’s tokens; GODZ tokens can be exchanged for Ether; and GODZ tokens can be exchanged for other tokens issued on the Ethereum Blockchain (ERC-20 tokens). Godzillion’s Dapp runs on the Ethereum Virtual Machine and does not use a central server to run user processes or logs.
Rodrigo Sainz, CEO of Godzillion

Crowdsale Information
The crowdsale will begin on August 25th, 2017 at 22:00 GMT and end on September 24th, 2017 at 22:00 GMT. Instructions on how to participate will be found on the Godzillion website at the start of the crowdsale.

The crowdsale will start on a specified block number. Ether must be sent to the crowdsale address in order to receive Godzillion tokens (GODZ). Every one Ether contributed will receive 2,000 GODZ tokens.

Token Distribution information
A total of 300,000,000 GODZ tokens will be created. This is the fixed supply (no growth rate). 210,000,000 of the total will be available during the crowdsale. GODZ are an ERC-20 token, and only Ether is able to be contributed in exchange for GODZ tokens.

Allocation
There are a total of 300,000,000 Godzillion tokens: 
 — 210,000,000 GODZ will be offered during the crowdsale
 — 
45,000,000 GODZ will be directly allocated to early contributors who have worked to develop the ideas, implementations, and supporting structures of the Godzillion project up to the time of the Crowd Sale. 
 — 45,000,000 GODZ will be directly allocated to the Godzillion Stiftung Foundation for payment of future expenses to be determined in the Foundation’s sole discretion.

Use of Crowdsale Proceeds
The use of proceeds will be as follows:
 — 50%: Development and Enhancements
 — 33%: Marketing & Promotion
 — 8%: Back Office & Operations
 — 7%: Legal & Compliance
 — 2%: Miscellanious

Team
Rodrigo Sainz, Co-founder and CEO
Linkedin
Rodrigo holds a Masters degree in Finance and an Engineering degree from Universidad del Desarrollo, Chile. He is a professor at Universidad del Desarrollo and has previous experience starting his own business.

Cristobal Pereira, Co-founder and COO
Linkedin
Cristobal holds a Masters degree in Administration and an Engineering degree from Universidad del Desarrollo, Chile. He is also Co-founder and Director at mifutu.ro.

Eduardo Portugues, CTO
Linkedin
Eduardo holds a Computational Engineering degree from DUOC, Chile. He most recently held the role of CTO at mifutu.ro.

Matias Pereira, Software Engineer
Linkedin
Matias holds a Masters degree in Administration and an Engineering degree from Universidad del Desarrollo, Chile. He was also a part of the mifutu.ro team with Eduardo and Cristobal.

Social Media
Facebook: https://www.facebook.com/godzillion/
Twitter: https://twitter.com/godzillion_io
Linkedin: https://www.linkedin.com/company-beta/16180343/
Telegram: https://t.me/godzillion

The above ICO information can be found on the Godzillion website and in their whitepaper. (1)(2)

Q&A

ICO Alert: How will the Godzillion platform ensure that the voting process acting as the screening process for startups is not dominated by those startups offering the largest rewards to voters? (Voters vote either “Yes” in favor or “No” not in favor of a startup).

Rodrigo Sainz, CEO of Godzillion: If a startup puts up a large reward in order to be voted for, it will attract voters, both “yes” and “no,” so the startup will get more information on the viability of their venture. If the voters voting against the startup win, that startup will lose the right to issue their tokens and the reward. The winning voters, “no” voters in this example, would receive their GODZ tokens back, plus 95% of the reward. So in order to minimize the risk of losing the right to issue tokens, a startup proposal must post a good description and an adequate, but not excessive, reward. These components will attract voters and give useful information to voters about their startup.
In the voting scheme, the return that investors earn from voting will depend on variables, such as the amount of the reward and the amount of votes already placed on each side of the voting process. For example, it might happen that after several days of voting, the “yes” vote side is winning. A new investor might calculate that an additional bet on the “yes” side would offer a lesser reward because of having to share the reward with so many other “yes” voters. In that case, the new voter might vote “no” thinking that 5% of the reward is enough because he would not have to share it with so many other voters. However, as additional new voters come in, they might also vote “no” and the first “no” voter would receive less than originally thought. In that scenario, the rewards for voting would be high enough to attract voters and would give great feedback to the startup company. If that vote is favorable, the startup company would get the green light to auction its tokens and receive financing.

ICO Alert: How does the Godzillion team plan to attract startups to the platform? Is there a list of startups already involved with Godzillion, or interested in becoming a part of the platform?

Godzillion: During the Godzillion DApp development period, we’ve already facilitated the financing (via issuance of tokens) of four Chilean startup companies. Trading in those tokens commenced immediately after the auction and issuance procedures were completed. So we validated that we can finance startups and also provide a platform where tokens issued by those startup companies can be traded.
We have had communications with startups supported by accelerator programs in different countries (Chile, Brazil, Colombia and Spain among others) that are interested in being a part of the decentralized voting and issuance process that Godzillion provides. We are waiting for the GODZ tokens to be created in the ICO and for the full Dapp to be deployed, in order to begin the startup voting process. Before the ICO we had several meetings in Latam and Europe in order to promote the first startups partnering with Godzillion.
Our plan to attract startups will begin within the first year. This will include outreach to Universities and presentations to their incubators, in order to propagate the use of the Godzillion Dapp as a catalyst that brings together voters and potential startups. Public events will be held with groups of investors in order to explain the role of GODZ, the voting and issuance process, and the access to a secondary market based on the Blockchain. After achieving those initial milestones, the second year will focus on collaboration with international accelerator programs in order to improve the reach of the Godzillion platform and the overall startup formation process.

ICO Alert: As context for our readers, the Godzillion platform cuts down on a variety of intermediaries that the normal startup process requires. Who/what are some of those intermediaries and what main problem is Godzillion solving by eliminating them?

Godzillion: Godzillion solves a variety of expensive and cumbersome steps in the issuance and trading process for startups. Godzillion decentralizes and de-mystifies the process of deciding whether or not to let a company publish its crowdfunding campaign through a voting system. Investors vote using GODZ, to decide whether a startup will have the right to post its campaign. Existing crowdfunding platforms charge fixed and variable fees and centralize the decision whether a startup will be allowed to post its campaign. Using Godzillion’s Dapp, a startup can offer an amount in GODZ as a reward to investors who vote, within a smart contract. Investors vote using GODZ and 95% of the reward goes to the voters who win, regardless if the outcome of the election is “Yes” or “No”. The losing voters share 5% of the reward. That implies that voting generates profit for the investors who vote, because after the vote they get their GODZ back, plus their share of the reward.
Godzillion also dramatically lowers costs for users. In the screening of proposals (via voting), issuance of tokens (crowdfunding) and exchange of tokens (exchange). The Godzillion DApp does not charge fees on the monetary value traded; instead each user only pays the “gas” required to execute his request within the DApp. That means lower transaction costs for users, compared to the traditional paradigm of a percentage of the amount of capital.
Godzillion creates liquidity for this class of alternative assets, which previously have been illiquid and prohibitively expensive to trade. The dilemma today for crowdfunding investors is that after investing they are “stuck” in their investment. In the Godzillion Dapp, there is a continuously operating exchange for trading these investments, so the growing companies do not face the decision whether to reinvest profits or pay dividends. Investors are not “locked in” and do not need to wait for the company to pay them a dividend or be acquired. Investors can go to the exchange and sell the tokens they bought in order to harvest their capital gains. That possibility of exiting and taking profits does not exist in the crowdfunding industry. Now, with Godzillion, it is possible because the distributed ledger records both the emission and the trade of the tokens. The procedures for trading are easy and trustworthy, so an exchange can operate smoothly and quickly, with low costs. This all shows that Godzillion increases the liquidity of crowdfunding investments for investors.

ICO Alert: Users can vote ‘Yes’ or ‘No’ for a startup on the Godzillion platform. What happens if there is a tie in votes? Is there some inherent layer of governance that the Godzillion platform uses?

Godzillion: The first release includes basic parameters that will be improved in time. With the logic that is in the current version, if there is a tie in votes the reward will be split evenly between the two sides. We are developing new features for the voting system, such as a voting amount limit, so the side reaching the limit first could trigger the Smart Contract, as if the entire 10 days had passed. We expect that voters will try to win the vote, exerting tactical forces to get more of the rewards. We believe that their efforts will lead to an equilibrium in voting pricing. Voters will be rewarded and startups will gain information before auctioning their tokens.

ICO Alert: Once a startup is voted for, what are the next steps for that startup? Do the votes (GODZ tokens) for the startup also fund the startup, or do users receive their tokens back when the vote is over?

Godzillion: After the screening process, the GODZ used to vote on the startup are transferred back to the voters along with their share of the reward. Voters can then decide whether to invest in the startup. When the startup is approved, it’s auction process starts. Voters do not automatically subscribe to the token issuance, but instead the startup issuance process begins with zero GODZ.
At that point, the investors (including voters who voted for or against the startup) decide if they want to bid in the auction that was just voted on favorably. Investors can also choose to bid in other auctions, or buy coins that were already issued in previous auctions. The auction process involves two main outcomes: the investors receives their tokens, and the startup receives the GODZ in exchange.
When the investor clicks on “Buy Tokens”, he will send the GODZ to the startup smart contract and the smart contract will automatically send the tokens to the investor’s wallet, and the GODZ to the startup’s wallet (this is a swap smart contract).
This first version of the auction process will end the moment that the total quantity of tokens have been sold, no matter if it takes 1 day or 60 days. At this point, after the auction has ended, the startup has its GODZ (convertible into ETH) and investors receive their tokens. Lastly, investors who want to sell their equity holdings of the startup can do so through the Godzillion decentralized market that is inherent to the Godzillion platform.

ICO Alert: The team and advisors have startup experience and experience working within various Universities. What sets this team and it’s advisors apart in the startup space that will allow the platform to be successful?

Godzillion: Our background is primarily based in technology and finance. Our career trajectory has been in the real-world business of finding financing for medium-sized companies, and working in corporate finance issuing stocks and bonds. We’ve worked with investors to develop venture capital private funds, with government matching that provides leverage for those private investors. We have also been on the startup side, working with entrepreneurs on a public program to accelerate the growth of emerging companies. We have expertise in computer science, blockchain, applications, security and cryptography, and various programming languages. We have the needed knowledge, experience, tenacity, perseverance, and temperament to fully implement Godzillion.

ICO Alert: As a non-Godzillion related question, does the team have any fun predictions for the cryptocurrency industry as a whole? What does everyone think is next for the industry?

Godzillion: We believe cryptocurrencies will continue to satisfy the needs they are already satisfying, and will soon be used in applications that were too costly in old-style financial intermediation. Specifically, it has always been difficult to finance small to medium-sized companies. Commercial banks could not do it before 2007, and since then they have been constrained from doing it because of issues related to risk. Investment banks could not do it because the fees they would charge on a small or medium-sized deal were too low to compensate their skilled employees. Traditional crowdfunding is helping, but still suffers from incomplete solutions to problems of monitoring and tracking the fast-changing fortunes of the companies that get financing. Worse still, crowdfunding has not, until now, found a way of providing liquidity for investors. Those who could not simply “buy and hope” were excluded from earning the high returns that are available with a low-cost, high transparency approach. Now, through blockchain technology and cryptocurrencies, a whole new segment of the population can obtain financial services and improve their financial status.

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View the Godzillion Website here.

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References
(1) Godzillion Website, Godzillion, (2017)
https://godzillion.io/

(2) Godzillion Whitepaper, Godzillion, (2017)
https://godzillion.io/gz_modules/docs/godz_white_paper.pdf

(3) Godzillion “How It Works” Paper, Godzillion, (2017)
https://godzillion.io/gz_modules/docs/godz_HowItWorks.pdf

Topics: Blockchain, ICO, Cryptocurrency, Token Sale, Finance