A closer look at dreamr’s crowdfunding features in development.
In this Deep Dive series, we are taking a look at specific features (or category of features) that make up the core components of the dreamr experience. This post is about the dreamr platform’s crowdfunding features.
Everything else we build is a tool that both assists a person with their dream and leverages the network they’re building in ways that add value to the dreamr community as a whole.
Crowdfunding is a logical addition and practical next step for the various types of dreams that need financial support. Such as people who want to produce products, start businesses, or fundraise for non-profit or charity efforts around a cause they are passionate about.
Crowdfunding in its current form has been a game-changer, creating a more level playing field for both projects and investors, and the industry is only expected to continue its massive growth. A new form of crowdfunding called an Initial Coin Offering took the tech world by storm with over $5.6 billion USD raised in 2017, attracting investments from both VC firms and individuals alike.
According to Fundly, crowdfunding has created 270,000 jobs and has contributed over $65 billion USD to the global economy. As an entrepreneur or creator, building a community of users/supporters while raising funds at the same time is pure gold.
The problem we’ve seen identified with crowdfunding is that it’s difficult and can be quite expensive to find success. Nearly ⅔ of projects on a friendly platform like Kickstarter don’t reach their funding goals.
We believe this is due to a fragmented set of services that are necessary for success. In the current formats, someone planning a crowdfunding campaign first needs to build up their community on social platforms, email lists, etc. and attempt to bring that audience to the crowdfunding platform. It’s for this reason that most successful projects have marketing budgets and agencies have sprung up to provide these services.
How is dreamr improving these inefficiencies? Let’s dive in!
Unifying the social network and the crowdfunding platform
The unique thing about dreamr is the networking taking place is very specific. People are connecting around their dreams. Knowing what someone is striving to become or accomplish creates a different context for relationship building that we’ve found to be much more genuine in our beta testing.
This creates an advantage over building an audience on Instagram for example, where you might gain followers but will need to convert them to contributors and have them sign up for another platform when your crowdfund starts.
On dreamr, new connections are being made because of a person’s specific dream. When a user seeks to crowdfund for their dream, it’s simply another way for their already supportive community to continue supporting. It’s also a cohesive experience; the user’s community can view the campaign details and contribute without having to leave the dreamr app.
An environment to Nurture ideas and projects from inception
Crowdfunding is a tool best utilized by mature ideas and products nearly ready for market. We view the dreamr platform as a place to nurture and develop an idea from its early stages, which currently does not exist. Our crowdfunding tools are uniquely designed to benefit from this nurturing process, as potential contributors should be very aware of the project and have been witness to its growth and evolution before it seeks funding.
Network effects designed for massive reach
Users can easily build a personal network with Dream Connect and our daily curated Suggested Connections. In addition to these, dreamr has a couple of unique features that can really help a crowdfunding campaign reach a massive audience.
Dreamweaving is a way for users to band together on a shared dream and create what we call a super-network. The original poster of the dream does the inviting/approving and maintains admin control over the participants and the content.
Every user can have one active dream at a time, which they can invite others to join. In addition, they can be a participant in up to 5 Dreamweaves.
The Supernetwork Effect: Any user that is part of the Dreamweave can contribute dream updates, and these updates will be shared with the collective network of all of the dream’s participants.
The supernetwork effect also applies to crowdfunding campaigns. The combined networks of all participants in a dreamweave will be notified when the campaign goes live. Live campaigns from current connections are also featured prominently in the crowdfunding section of the app.
Positive Influence of DRMR holders.
Dreamr is creating a token for use within its ecosystem, called DRMR, which both unlocks benefits and rewards when held or “staked” by a user, and will be a governance token over the platform’s technology in the future. We created DRMR for the purpose of rewarding our most active and helpful members of the community with ownership of the platform.
One of the benefits of holding a DRMR token is increased positive influence on the platform. If a DRMR holder contributes to a crowdfunding campaign, the campaign gets the benefit of being spotlighted for 24 hours (a perk normally available for purchase). If 3 or more DRMR holders contribute to a campaign, it gets placed on the trending list permanently.
A full list of DRMR benefits can be found in the dreamr white paper and a soon to be released deep dive on the DRMR token itself.
The Change Fund — making dreams come true
The Change Fund is our self-replenishing fund that is fed by a 1% pay it forward fee placed on crowdfunds and financial transactions in our P2P marketplace. These funds are used exclusively to assist users in manifesting their dreams.
If 3 or more DRMR holders contribute to a campaign, the campaign becomes eligible for The Change Fund to contribute to, or completely fill out, the funding goal. An internal review team makes these decisions, and as a condition of accepting the funds, the owner of the campaign agrees to let the dreamr content team document and share the story of the dream coming true.
We have taken several steps to ensure that quality people and projects are using the platform in general, specifically for financial tools like crowdfunding.
Network Size and Reputation
A new user can’t simply sign up and start a crowdfunding campaign. For the crowdfunding features to become available, a user must build up their network of connections to a certain size (which varies according to the size of the fundraising goal). A solid reputation score, measured in our reputation points, GDP (Giving Dreams Power), must also be achieved.
To utilize dreamr’s financial products, participants must undergo Know Your Customer procedures, including ID verification.
We are creating increased transparency and security by integrating blockchain technology into our crowdfunding tools. Have you ever heard about a crowdfunding campaign that raised a ton of money and failed to ship its promised product? It may have been a failed execution, or it could have been the plan the entire time.
Rules for crowdfunding campaigns are defined using smart contracts, which can be programmed to set the terms and conditions for holding funds in escrow, as well as how the proceeds will be used. Campaign owners will set these terms from pre-defined options created by dreamr, and contributors are made aware of them before sending money.
Crowdfunding Now and in The Future
Initially, crowdfunding campaigns will be rewards or donations based, similar to Kickstarter or Indiegogo. This will allow us to roll out the crowdfunding platform quickly so people can begin using it.
In the future, Dreamr intends to become a registered funding portal with the United States SEC and FINRA. This will allow users of the platform wishing to start companies to offer compliant equity offerings via Security Tokens under Regulation CF. These projects will by requirement be vetted by dreamr and receive significant interest from the community.
Pre-register for dreamr today!
The dreamr platform is now open for pre-registration. You can sign up, reserve your username, and declare your dream ahead of our official launch. Sign up here.