Not really. Everyone should be payed out by the time Teehe launches; developers, designers and testers, etc.
Managers and shareholders can take care of customers support in early days so we can save on paying support staff. The operating expenses of Teehe are malleable to the volume and needs of the market, Teehe operational costs will be minuscule compared to competition.
After Teehe gets decent volume and standard user base we can discuss salaries and hiring extra staff and discuss paying extra developers to continue to improve the site.
So would you say that Teehe is able to use more efficiently software than the competition and make AI (software is a soft AI) work instead of humans much more than the competition, the most remarkable parts of it being probably the autonomous organization that lives in the blockchain (on Nu’s fork) and the bet feeds bots…?
20% of shares are being offered right now and another 10% later on once the platform has been developed already. Are you able to tell us how the remaining 70% of shares will be distributed, as that should have a major effect on shareholder voting.
@Teehe is my take on your offering (regarding the question of “IPOing” before a product has been released) a fair assessment in your team’s opinion?
I see Teehe’s fundraising as similar to—but not exactly like[1]—an angel or Series A round, rather than a traditional IPO. The primary difference from a traditional venture in this case would that rather than seek that funding from an isolated set of VCs, they’ve solicited interest from the larger cryptocurrency community.
An “IPO” usually is offered after a product has been released and a proper evaluation of its fundamentals can be made.
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[1] That they are using Peershares to generate the DAO’s shares mean that they are offering a different type of equity than a “typical” convertable note to exchange preferred to common stock in the future.
You are correct with the first two allocations of shares. However, both the business plan and prospectus detail a third set shares to be distributed publicly.
The distribution of the remaining 10% of shares to be allocated publicly will be determined by shareholders. It will serve in a similar fashion to how the undistributed NuShares have for the Nu network. If Teehe needs to finance new developers, say in a year, the network can propose a motion to auction off these shares instead of drawing upon profits. Another option, shareholders pass a motion to burn these 10% of shares in order to not dilute their shares.
Your question persists, what of the remaining 60% of shares?
Prospectus: “The remaining 60% of shares are used as: strategic reserves of capital, payment for partners, developers and operators of various services. This provides financial incentives for the developers and managers to maintain and improve the network after launch, without garnering a wage.”
In this regard, we discussed labeling our venture as an IPO, Series Seed Funding, and Crowdfunding. IPO was chosen as it is more familiar to the laymen rather than the financial lingo of Series Seed Funding. IPO may not be the best description of the venture, but it is more simplistic.
The most accurate description of the Teehe plan is as follows. The first round of funding is not an “IPO” but rather a Series Seed Funding. This will allow the platform to be developed upon which a Series A Funding will occur. Shares are reserved for a Series B Funding to allow for expansion and scalability.
How much percentage of the dao is kept by the founders, if 20% is sold to the early adopters, then 10% is sold or burned later on and 70% is kept as strategic reserves?
20+10+70=100.
Am i missing something?
Prospectus: “The remaining 60% of shares are used as: strategic
reserves of capital, payment for partners, developers and
operators of various services. This provides financial incentives
for the developers and managers to maintain and improve the network
after launch, without garnering a wage.”
still your question remains
How much percentage of the dao is kept by the founders
Share distribution:
Series Seed Funding = 22%(bonuses)
Series A Funding = 10%
Series B Funding = 10%
Remaining = 58%
Another quote from Prospectus: “Each developer has their own unique contract; some are paid using only cryptocurrency while others are paid a dynamic mix in Teehe equity and cryptocurrency, making it impossible to describe this group in general.”
We have kept the remaining shares indeterminate to allow for flexibility. If we were to give an exact allocation of all 100% of shares, the management team would have to pass up positive expected value opportunities.
Teehe is our baby, the managers have raised it to this point and will shepherd it through the tumultuous stages of adolescence. Teehe is like a child, there are many paths it can take to grow up. We are not limiting these paths like overbearing parents.
Okay enough with the analogy. In practical terms the managers will be compensated with shares, they need to do this process correctly, as an overallocation of shares will lose shareholder confidence and hurt the share price. Furthermore, if the managers were to overcompensate themselves, the market would realize this and little liquidity would be present for managers to realize their gains.
It can be stated that managers unlike developers are not in an immediate need to garner a wage, for this reason they will solely be compensated in shares. We are confident that an appropriate balance will be reached of share distribution to strengthen the network and managers stake in the DAO.
The managing team and developer team have overlaps with @Peerchemist being involved in both. Everything described thus far is not final, they are merely plans of the current management team.
So basically, the founders will have 58% after the 3 funding rounds are completed.
How those 58% will be used is up to the founders or the shareholders?
58% will remain if you ignore all the bonuses or payments to people who do the work.
Also this same story was repeated over and over. It is all over Prospectus like: “Developers will be paid in mix of equity and cryptocurrency - making it impossible to…”.
I see my partner struggling to explain it, general plan of distribution is in that post above - but it does not include internal arrangements and deals.
It is impossible to explain in detail as it is not planed, and it is not possible to plan it.
We don’t know how much will “founders” have in 6months nor in 2 years. Managers are here to organize it all and bootstrap the network.
What I do know that distribution will be smart and limited in start to ensure healthy network. After that it is up to all of us to decide. It is impossible to state exact figure this early when new team members show up daily and not all paychecks have been decided.
I’m not sure, but it reminds me of the Rubacava section in the old 1998 PC adventure game Grim Fandango where people are gambling and betting on cat racing. Hopefully somebody here knows what I’m talking about.
Current status of Teehe development will be presented to shareholders on weekly or bi-weekly basis. Please note that development will start only if IPO has passed. There are no concrete plans on when will Alpha or Beta be finished but our goal is to have functional platform by September.
