[IPO] Teehe - DAO sports book and casino based on Peershares

[peerchemist]

Correct, seizing the server is unlikely. However they will block outgoing connections from their own state to the server (try to access any UK gambling website from another EU IP address). That will put an entry barrier to the service which will impact the user-base.

I just want to add that this will not interfere Teehe much. We still have back-channel via Namecoin p2p domain system. Mostly they block the DNS entry, so IP can not get resolved - Namecoin will handle this. Namecoin is getting easier to use, they even have Firefox/Chrome addon that resolves their DNS on the fly.

Also, Teehe will be under the radar for quite some time. We will have time to adopt to anything.

[Teehe]

There was interesting idea posted in NSR auction motion thread by @tomjoad. It is interesting discussion, we had some similar ideas internally but never polished the thought. While it is in Nu’s best interest that Teehe works, further discussion is needed to see will this work for both DAO’s.

OP @ [Passed] NSR auction motion

[Passed] NSR auction motion

Besides NBT burning, one alternative scenario that might lead to a successful NSR grant would be a parallel equity offering. As a purely hypothetical example, let’s pretend Teehe asked for a 10,000,000 NSR grant from shareholders, and in exchange promised 50% of their available Teehe shares to all NuShareholders.

At current supply levels 10M NSR would be a dilution of about 1.25%.

As long as shareholders believed that the future value of 50% of Teehe was worth more than that 1.25% dilution, an NSR grant might be provided. Teehe would gain access to a reliable asset to use as capital, and more importantly gain access to the considerable network effect of Nu by encouraging NuShareholders to also hold Teehe shares. As a reward, NuShareholders would potentially significantly increase the overall value of their crypto portfolio through the future projected worth of Teehe shares.

Now, of course Teehe doesn’t do this, but it’s possible we might see another Peershare implementation propose this in the future. It would be much like traditional VC - a Peershare startup reduces its future potential profitability by “selling” its shares to NuShareholders, but gains working capital and a user base to get its idea off the ground.

[Passed] NSR auction motion

I agree that this a wonderful feature of being a DAO, but why couldn’t Teehe ask for a NBT grant? If this funding would be required as capital, then NBT should be much more attractive than NSR, due to the better liquidity and the peg of course.

If someone asks for a grant just to transform these funds into something that can be used to pay bills (which is required at a startup like Teehe), then an NBT grant would be more appropriate in my opinion, from both perspectives.

Please, share your thoughts. We are interested what will become of this idea.

[tomjoad]

My example was hypothetical in nature, but it’s interesting to think about.

One important consideration that I think makes your existing fundraising structure more appropriate than an NBT grant is the size of operations. Your fundraising target of 100,000 NBT would simply be too much for the peg to handle at this point with our current liquidity operations, if it was given as a one-time grant. It is also unclear whether shareholders would find Teehe to be overly risky because it operates in gambling. Shareholders would not want to expose themselves to unnecessary risk.

A parallel equity swap would not necessarily be appropriate for fundraising now that I think about it, but as a complementary piece to encourage NuShareholders to use and promote your service. In compensation for access to those network effects, it is likely Teehe would have to offer much more potential equity to NuShareholders than is returned to them in the form of NSR. Although it also introduces the question again of whether NuShareholders want to be holders of Teehe shares due to the risk of the markets it operates in.

Generally speaking my example was intended to highlight the fact that NSR grants can be used creatively, and that NuShareholders would be wise to consider non-conventional grants.

[Teehe]

Your fundraising target of 100,000 NBT would simply be too much for the peg to handle at this point with our current liquidity operations, if it was given as a one-time grant

However Teehe will not spend IPO funds at once, but continually over period of 4-6 months. @Peerchemist also reported that he used NuBits to pay 3rd party developers for some Teehe stuff recently as they have learned to appreciate stability of NBT as well.

It is also unclear whether shareholders would find Teehe to be overly risky because it operates in gambling. Shareholders would not want to expose themselves to unnecessary risk.

This is true however.
Despite our attempts to lift the stigma of “risky business” from Teehe it is becoming clear that community is still uncertain about this.

A parallel equity swap would not necessarily be appropriate for fundraising now that I think about it, but as a complementary piece to encourage NuShareholders to use and promote your service

Yes, we agree on this. It is more favourable for both parties to keep things as they are now. Keeping risk of investment in startup to individuals rather than using network funds to get Teehe going. For sake of network it is best to avoid this kind of endeavours.

We see it more appropriate to ask for NBT grant from Nushareholders in the future, once platform is about to become operational and use those funds to boostrap our liquidity reserves.
However, there is still a long way to that point.

[cryptog]

choosing managers

So a manager is someone that has access to the server in which the Web application is installed.
It is also someone that would be in charge of marketing and fund management.
Am I correct?

[cryptog]

From the business plan:

Managers are group of persons who are committed to organize funding of Teehe.

[Teehe]

Meaning of manager will change after the IPO, now founders are managers and they will get Teehe to some point where DAO is functional. That includes all that is needed to start Teehe, from writing business plan to hiring developers and organising fund-raising as well as writing this post.
Then, after the IPO, shareholders will vote on who will be next manager of operational Teehe.
Role of manager of fully functional Teehe is to run the business, that ranges from hiring extra staff to choosing bet limits. To place it simple, managers will make sure business is profitable for shareholders.

@Peerchemist has designed the web administration interface for future managers, based on similar interfaces from classic sports books. It is website only managers can access and contains all data about Teehe; status of market monitoring bots, status of wallets, currents odds, active wagers and their sum, liquidity, etc.

And only sysadmin has access to actual server, and that is @peerchemist currently.

[cryptog]

From the business plan

Teehe aspires to have its share available to
trade on an exchange shortly after the second round of funding.

and

current
management expects the distribution of these shares to take place a year in the future to
finance an aggressive marketing campaign.

So you expect the shares not being publicly traded for a period of 1-y from the IPO?

Also, I did not find the excel sheet related to the financial highlights.

[desrever]

@Teehe, do you already know which kind of betting/gambling are you going to implement in the first iteration of the product?

This answer is already spread around previous discussion but it might be worthwhile expanding a bit. You already selected the niche of crypto-gamers as target so the question is : what do they like betting/playing on? What is the most attractive game or gamble that can be integrated with feasible level of effort? Moreover, given the nature of the platform I think that people will be attracted by something they cannot bet anywhere else (UK-style) …
Will you allow for users to submit their bets ? “What will be the next cryptocurrency to overcome 1 B in market cap” kind of

[Teehe]

Due to open-source nature of Peershares implementation, we will not be able to stop exchanges to start Teehe-shares markets. But we will not actively support it or pursue this idea. We feel that Teehe needs to be stable and profitable before going on open market.

You can request financial sheets, just contact us on BM/email.

[Teehe]

@Teehe, do you already know which kind of betting/gambling are you going to implement in the first iteration of the product?

We will start with sports. That goes in “sports book” category. UK is famous for its sports book, culture of sports betting is strong in UK; so UK has bet365, Pinnacle, Williams, Stanlybet, …

You already selected the niche of crypto-gamers as target so the question is : what do they like betting/playing on? What is the most attractive game or gamble that can be integrated with feasible level of effort?

It is not niche, it is mainstream.

We have studied how big gambling houses work (the ones mentioned above), they all offer sports and base on that. After they attract enough customers and reach certain volume they expand in casino games; namely Poker as the most popular and than roulette and other simpler games.

They do this to achieve constant volume, as sports gambling varies greatly with season. Volume of bets is much higher during the finals of UEFA champions league than in summer when most of team sports in Europe are inactive.

You can read upon this subject, papers were released on this tactics.
Fact remains, sports gambling is number one; that is why we start with it.

Moreover, given the nature of the platform I think that people will be attracted by something they cannot bet anywhere else (UK-style) …

Contrary, we don’t have to aim for something exotic to offer customers. As we have stated before in answer directed to you we aim to offer better experience to classic gamblers; like the ones you find in UK and who favour team sports.

Will you allow for users to submit their bets ? “What will be the next cryptocurrency to overcome 1 B in market cap” kind of

Sure, that is quite simple to implement.

[desrever]

We will start with sports.

Ok. Are you using any specific feed for quotes? Subscription to reliable feeds with quotes can cost up to several hundred thousands dollars a year, or at least that was the state of industry a few years ago. I hoped it changed

[desrever]

Contrary, we don’t have to aim for something exotic to offer customers.

Well the UK gambling market is so unique because it does offer exotic bets. “When will Blair lose 35% of his hairs” attracts betters. Not exploiting this kind of unique bets you can only place in an free-from-regulamentation environment is a loss opportunity, imho.

[Teehe]

It is stated in business plan how will we get the odds. Web scraping, there are some alpha implementation of such bots already finished. It works, and works well. And don’t ask silly questions about this, it really works.
This is what we refer to as “market monitoring bots”, and by using those bots we get more data sources than just one feed provider and can notice any change in odds, from any provider.

As for subscriptions - that was original plan yes. And it costs about $9000 a month.
However, Teehe does not exist so it is not possible to sign contract and deliver bank payment.

As stated in business plan, Teehe has extremely low running expenses due to this - we don’t exist so we don’t have to buy licences. We have turned show-stopper to strength.

[Teehe]

We know that, and as stated before - that is easy to implement and will be implemented. However, sports are priority. Customers will judge the platform basing on sports - if we do sports right only thing left is to expand.

[Teehe]

One more thing about “Market monitoring bots”, they will allow Teehe to monitor every aspect of the sports gambling market. By gathering and standardizing that data we open a whole lot of other options like implementing bots that will tweak the odds offered by the Teehe depending on the situation on the market to implementing neural network to run this segment instead of manager - reducing risk of error, reducing operational costs and moving Teehe to true autonomous organization. Machines can do the work.

[Teehe]

Completion of the first week of the IPO:

Contributed funds stand at 11,042.30 PPC, 1500 NBT, and 62.99 BTC

Amount contributed at time of contribution $22,518

At current market prices approximately $22,150

[mhps]

Amount contributed at time of contribution $22,518

At current market prices approximately $22,150

Do you have plan to mitigate exchange risk of the IPO fund?

[Sentinelrv]

Do you have plan to mitigate exchange risk of the IPO fund?

They really should convert PPC and BTC to NuBits.

[peerchemist]

Cant do it. If IPO fails we have to return the exact same coins back to investors.