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

[Teehe]

Ann: Professional artist joins Teehe team. Art and design professor with background in gambling.

Perfect combo.

[Sentinelrv]

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

Yeah, I didn’t even think about this.

[GreatScott]

How will dividends be determined in amount and frequency? Maybe you can give some examples of scenarios where Teehe makes an amount of profit over a certain period of time and calculate the resulting dividend. I imagine there may be a desire to reinvest into Teehe especially in the beginning, and if so what is an estimation of time and goal amount for reinvestment?

[Teehe]

The dividends will likely be distributed quarterly. This is our plan for dividend distribution, but ultimately it is up to the shareholders to decide. We expect that shareholders participate in decision making and act on what they consider is the best for the company. In this fashion, it is possible that shareholders agree on keeping part of the profit to increase liquidity reserves or invest in marketing instead distributing it as dividend.

For example, starting liquidity is planned to be $100,000 when platform starts. This sum should be enough to handle all the bets in the start when things are “slow” but will be lacking if business expands. Thus, it is expected for shareholders to increase liquidity of Teehe by “giving up” on one piece of total profit to increase this reserves.

Hypothetical motion:

“Increase current liquidity in steps of 30% of monthly profit until $200,000 is reached”

Or, other scenarios:

“Allocate $20,000 to fund marketing campaign.”

“Allocate $35,000 to hire penetration tester.”

etc.

Other investments in the start, beside increasing liquidity would be translation to Chinese or Russian or hiring support staff to handle customer inquires. It is hard to estimate how long will this process last, as it greatly depends on shareholder wishes/expectations of the platform as well as the profit Teehe will acquire in those first months.
However it is quite safe to presume that Teehe will never allocate 100% of profit to pay out dividends as there will always be more important investment to take - all in the best interest of the company.

[Teehe]

Prospectus document translated in Mandarin: http://teehe.net/pdf/teehe-prospectus-CN.pdf

[cryptog]

So Teehe would be using a fork of nubits once it s open sourced.
As a voting instrument, you would be using motions only, and discard custodian votes and park rates?

Also you say that the starting liquidity would be 100k nbt?
What is exactly the definition of liquidity?
Is it the money used to pay the reward of the winning bets?
If this is the case, if you get to raise only 90k nbt, where would that liquidity come from?

[Teehe]

So Teehe would be using a fork of nubits once it s open sourced.

Nu is based on Peershares, and we will use that too. But technically answer is yes, as Nu improved Peershares significantly.

As a voting instrument, you would be using motions only, and discard custodian votes and park rates?

Yes.

Also you say that the starting liquidity would be 100k nbt?What is exactly the definition of liquidity?Is it the money used to pay the reward of the winning bets?

Yes, for Teehe liquidity means money used to run the business. It is called the “bank roll” in this industry.

If this is the case, if you get to raise only 90k nbt, where would that liquidity come from?

We need $90,000 to implement the platform. Which includes all from graphics design to backend development as well as renting needed infrastructure and initial testing.

Liquidity bank roll will come from second part of the IPO where 10% of Teehe shares will be offered. This second part of IPO will start once Teehe platform is ready. This exact process is described in business plan.

[cryptog]

Tks for your answers.

Another questions.

Yes, for Teehe liquidity means money used to run the business. It is called the “bank roll” in this industry.

Would you need to pay for monthly salaries once the site is up and running?

[Teehe]

Would you need to pay for monthly salaries once the site is up and running?

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.

[cryptog]

Teehe operational costs will be minuscule compared to competition.

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…?

[Teehe]

Yes

[Sentinelrv]

This is posted in /r/cryptocurrency in case nobody knew about it…

Teehe - DAO sports book and casino • r/CryptoCurrency

[Sentinelrv]

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.

[Ben]

@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.

–
[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.

[Teehe]

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.”

[Teehe]

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.
–[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.

@Ben yes this is a fair assessment.

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.

[cryptog]

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?

[irritant]

i think it is 60% actually:

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

[Teehe]

Share distribution:
Series Seed Funding = 22%(bonuses)
Series A Funding = 10%
Series B Funding = 10%
Remaining = 58%

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.”

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.

[cryptog]

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?