[Passed] Motion to provide seed funding for B&C Exchange - a decentralized exchange built on the Peershares platform

[crypto_coiner]

Again, it’s only my preference, but I would prefer to get as much development completed up front as possible. I would much rather have an exchange with many new groundbreaking features and extensive QA as opposed to a minimum product that may or may not ever receive additional funding. Shareholders should take a long-term view to the success of B&C Exchange.

I don’t support that view - B&Cex is a venture and should iterate step by step on what is working, after validating hypothesis - Not shipping a brand new product that nobody happens to NOT need or desire.

[Sentinelrv]

In my understanding, it seems that second round investors risk dilution if we go beyond 200k.
Why?
Because they will have the same ownership whether second round investors raise 120k or 332k.

This is my point. I will personally have no interest in promoting B&C beyond $200k as doing so will only impact me negatively in the end as the shares I’ve already purchased are diluted further. Since fundraising is now jumping so much over the last several days, I feel hesitant to carry out my original plan of posting in other communities. Doing so may mean that we overshoot our $200k goal by a lot, which would negatively impact me and any other second round investor that purchased shares below $200k.

This is why I prefer the iterative approach to blind fundraising as @crypto_coiner suggested. I think we should only raise what is required to complete development of features. This doesn’t mean we need to wait until the basic implementation of B&C is complete before we do more fundraising. Once we get into the first couple months of development I imagine we would have a much better idea of the costs for additional features and we could then pass a motion to sell more shares once we know how many we need to sell. We would then proceed to sell that amount and nothing more. And these additional sales would occur long before we needed to stop development due to lack of funds.

[Nagalim]

as the shares I’ve already purchased are diluted further

But you’re more than likely increasing the marketcap. How can selling more shares for prices higher than what you paid be bad? If you really somehow raise more money than B&C will ever need just distribute it back out as dividends and you can buy yourself more BKS to compensate the dilution.

[dysconnect]

Further rounds of funding are probably going to be much easier if this 200k can result in at least a functioning core. Say if there can be an alpha test among shareholders for some basic functionalities. After raising this 200k we can try to give it some time (e.g. until the core team finishes NuBits 2.0 and starts to build something on B&C and the website is running), before deciding the details for the next auctions, with some input from shareholders.

[JordanLee]

Just as Nu development was greatly needed after our initial release in September, I’m sure additional development on B&C will also be essential. There are additional features which are very important like using time lock to release deposited funds regardless of what signers do. For instance, funds could be transferred from a deposit address to a withdrawal address one year after deposit. This would occur even if every single signer failed to sign. I have discussed how B&C can be used to guarantee Nu liquidity for a period of time and that is not part of the initial implementation. I suspect the escrow and reversible transaction capabilities are also very much worth pursuing but are unfunded at the 200,000 level. QA is also almost completely unfunded at that level (we are only paying for 8 hours a week at the 200,000 level). There are a lot of good reasons to continue getting additional funding. It will either have to be provided now or in a few months if B&C Exchange is to continue to flower.

We should use the time when B&C Exchange is novel and exciting to members of the community to get full funding.

[Sentinelrv]

@JordanLee, this is makes sense, so thank you for explaining the details. I’m not completely opposed to this. I’m just trying to figure out which is the best way to go about it. Would you happen to have a rough estimate of how much funding over $200k we should be looking at in order to fund these additional initiatives? Putting numbers to these extra features and having a goal to shoot for is very helpful in understanding what we’re trying to shoot for.

Also, glad to see that you’re considering time lock transactions as a backup mechanism in case something happens to signers. That was one of the things I was concerned about.

If I’m going to go ahead with posting about B&C at other communities, then I would rather wait until the logo and website have been released.

[JordanLee]

Would you happen to have a rough estimate of how much funding over $200k we should be looking at in order to fund these additional initiatives?

My first priority for additional funds would be QA and marketing. Creating a solution where security and robustness is of paramount importance because exploits could be quite costly with 8 hours of QA per week is, to put it politely, quite novel. It certainly isn’t commonly accepted practice. But at $200k, the choice isn’t whether to have robust QA or not, the choice is between deciding it simply isn’t enough to properly proceed and proceeding in a less thorough fashion with the hope that using low trade size limits when it is first used will be a sufficient method for testing it.

There are multitude of other ways the money could be spent besides what I just mentioned a couple hours ago in my post. For instance, how about a block explorer? Android client? More great ways to spend the money will be thought up as we go, so I am hesitant to commit to spending funds on specific items many months in the future.

What extra features does everyone value the most?

[BCExchange]

What extra features does everyone value the most?

This is an important question for all prospective BlockShareholders, which will of course include all NuShareholders. It would be helpful if discussion could be focused on the Bitcointalk thread to ensure maximum visibility and participation. We have asked the question on Bitcointalk here.

[BCExchange]

Total funds committed have reached $179,451 including seed funds. We are now over 89% of the way to our goal of $200,000.

[Sabreiib]

1） The B$C profit, ie transaction fee can be used to fund extra developement such as andriod wallet. Remember B&C will probably be a profitable company so there is continuously fund coming out, we must not spend all income into dividend, I think half income should be kept before dividend.

Or we can build up a donate record, those BKS holders providing more donate to develement natually get more vote.

2. Another solution is to provide discount BKS price to investors of those 200K. For me if BKS is cheaper, I"ll buy more. Seed investors cost is below 2$/BKS, NSR holders cost is zero, but our second round investors cost is >=4$, so I think BKS maybe drop below 4$ after B&C releasing because some people get them for free.

[BCExchange]

Total funds committed have reached $190,247 including seed funds. We are now over 95% of the way to our goal of $200,000. Thank you everyone for your support!

As posted here: https://bitcointalk.org/index.php?topic=1033773.msg11627030#msg11627030

[Sentinelrv]

We’re in the home stretch!

[BCExchange]

Total funds committed have reached $197,985 including seed funds. We have now reached 99% of our goal of $200,000!

More detailed information regarding purchase finalization, BlockShare distribution dates, and other logistical issues will be provided here once $200,000 is exceeded in the near future. However, we can say that we will contact everyone who made a pledge as quickly as possible to arrange payment. We will give regular updates on how that is progressing and how many funds have actually been received. So, it would be very helpful for our team if prospective purchasers can ensure that they have ready access to their payment funds.

Important: If you have previously requested a purchase of BlockShares but are not planning on following through with that commitment, please let us know. Your privacy will be respected. We only wish to know so that our fundraising total can be adjusted downwards if necessary.

As posted here: https://bitcointalk.org/index.php?topic=1033773.msg11656373#msg11656373

[BCExchange]

Good news! B&C Exchange has successfully completed basic fundraising, eclipsing our minimum fundraising goal of $200,000. Our current fundraising stands at $201,863. It is now time to collect funds from BlockShares purchasers to establish our development fund. Here is a quick summary of what to expect over the next 30 days.

Key Dates:

June 22nd - Payment information will be sent to all prospective BKS purchasers through the communication channel they contacted us through.
June 26th - Deadline for making payment on BKS purchases requested prior to this June 20th announcement. If payment is made after this date, current pricing will be used (currently $4.08) instead of the original price of the pledge.
July 3rd (end of day) - BlockShares creation date. In order to receive BlockShares by owning NuShares, you must own NuShares as of the end of Friday July 3 UTC. Care should be taken to ensure that all NuShares are removed from exchange accounts prior to this date; if this action isn’t taken we make absolutely no promises about your ability to redeem NSR for BKS because an exchange owner may claim the BKS. Ensure you have full control of your NuShares in advance of this date.
July 19th - All BKS paid for by July 17th will be delivered by this date.

Exchange rates to be used for settlement (based on coinmarketcap.com price at 18:05 20/06/2015, the time of this writing):

BTC: $243.990
PPC: $0.408
NBT: $1.000

Fundraising will continue as has always been planned and announced. If BlockShareholders wish to cease fundraising they may do so with a shareholder motion after initial distributions are complete, plus 7 days to allow all transferred BlockShares to become eligible to mint. This would occur sometime around July 26th. Assuming fundraising continues to progress, shareholders can decide by motion how extra funds are allocated. As previously mentioned, there are a number of specific features we can implement with these funds, including enhanced trading options, better QA testing, and broader marketing campaigns. Implementing time lock release and an Android client are possibly among the most important items not funded at our basic $200,000 level.

We will be contacting everyone who made a pledge as quickly as possible to arrange payment. We will provide regular updates on how that is progressing and how many funds have actually been received. We are hopeful that our preliminary due diligence will result in the overwhelming majority of purchase pledges being upheld.

Thank you again to everyone who has supported B&C Exchange. Our team will work as hard as possible to create a decentralized exchange that will disrupt and revolutionize the trading of cryptocurrencies and cryptoequities.

[Sentinelrv]

Well it took a while but we finally made it! Time to give NuBits some more demand and use with B&C!

[mhps]

https://bitcointalk.org/index.php?topic=1033773.340

NuShareholders - ~85,000 BKS

Thought I should ask…When calculating BKS amount to be sent to NSR owners, does rounding happen at 1 satoshi digit or at integer digit? Suppose an address with 10,000 NSR gets 1.0000 BKS. then how many BKS does an adress that has 19,020 NSR get? 2 BKS (rounding to integer), 1.902 BKS, or 1 BKS (truncating to integer) ?

Does NSR allocation among different unspent outputs matter? e.g. if an address has 9000 NSR and 9500 NSR in two outputs respectively, will it receive 0.9 BKS and 0.95 BKS in one BKS address or 1 BKS in one ouput and 0.85 BKS in another?

[Yurizhai]

Implementing time lock release and an Android client are possibly among the most important items not funded at our basic $200,000 level.

Would it be possible to get an estimate on how much those could cost? Also, can someone give me a brief explanation on what time lock release is?

[Nagalim]

what time lock release is?

gives you your stuff back if signers don’t show up after a while, I think.

[crypto_coiner]

This is the funding board of the hottest startup that just made IPO : Fitbit

Any private investor in Nu or BCex (peershare venture) deserve and ought to have the same level of transparency. This is as benefecial for him/her as for the venture.

I will write a motion subject to shareholders voting provisioning the report on shareholdings

[tomjoad]

Update for everyone on B&C Exchange marketing development:

A draft website design is expected on Monday. It will be very similar to the NuBits pre-release webpage that was so successful in generating attention. Taking this design approach also allows us to conserve funds for other priorites. I’m hopeful BCExchange.org can be live within a week or two, depending on completion of the logo.

Our logo is about 80% complete. We’ve had the font and color palette selected for the past couple weeks, but are still improving an icon to go along with it. So far we’re about 10 concepts deep, but narrowing our focus onto a couple that seem to work well.

Once these two activities are complete, I’ll be designing a banner ad for deployment on coinmarketcap.com, and possibly looking into using any leftover funds to create an infographic or two.