INTRODUCTION TO CROWDFUNDING
Crowdfunding is the practise of raising funds for a project or venture by drawing small amounts of money from a large number of people. Rather than going to a bank or other financial institution for funding, businesses and individuals can reach out to a wide audience of potential donators (known as backers) to get the money they need. Backers will provide money to a project in exchange for rewards offered by the project creator. The key is to offer rewards that will be appealing to target audiences and that align with the project goals.
INTRODUCING CROWDFUNDING ON THE BLOCKCHAIN
CrowdfundNFT is a reward based crowdfunding platform, powered by blockchain technology. By introducing the traditional crowdfunding model to the blockchain, we offer a seamless, safe and transparent experience to both project creators and backers.
The platforms allows anyone to create and share their project with no industry or focus restriction, as long as the product is both ethical and moral.
In exchange for backers’ financial support, project creators must give out rewards. These can be anything from a form of digital gratitude, an early access or special limited edition to a product or service, a physical good or piece of hardware delivered, etc.
For project evolving within blockchain or web 3 ecosystems, rewards can also include airdrop or whitelist benefits (token, DAO, NFT collection … ), tickets to metaverse events, in-dApps rewards, etc.
Submitting your project:
Once you have rewards figured out, you are ready to submit your project on CrowdfundNFT. Here are all steps to follow:
Click on ‘Create a project’, and login with your Internet Identity * What is the internet identity pop-up?*
Share your story: your project page is your chance to tell your story:
- Who are you? Do you have a team?
- What is your project? Why is it important? Innovative?
- Do you have a clear plan? A roadmap? What can backers expect from your project in the near and far future?
- What are you planning to do with the money you are raising?
We do strongly recommend to add pictures and videos to your project description for a better story telling experience.
Think about the funding & the rewards. CrowdfundNFT operates an all or nothing model: if your project doesn’t reach its goal, you’re getting nothing, and backers are reimbursed. This helps create confidence to people who back your project.
- Decide how much you want to raise: to maximise your chances of reaching your goal, this should correspond to the minimum amount you need to deliver all the rewards you are promising.
- Determine if you want to include one, two, or three tiers. Offering a multiple range of tiers and rewards will let you grip a larger audience. Each tier must be priced differently, and come with a different set of rewards.
- Give out rewards that are worth the money you’re asking for. The amount you are asking each participant must be at least equal to the value they are getting out from the rewards they are receiving.
Choose in which currency you’ll be running the campaign. Only one currently can be selected per project, and pledges will be collected in that currency.
- Crypto (ICP or BTC coming soon)
- USD coming soon
All participants of a successful crowdfunding rounds receive a digital contract, allowing them to ‘redeem’ their rewards. This digital contract, also known as a NFT (non-fungible token) is automatically disbursed to participants’ wallets.
- All NFTs are tradable on CrowdfundNFT Marketplace. Whoever holds the NFT gets to redeem or use the rewards (depending on the nature of rewards).
- If the initial participant in your crowdfunding campaign decides to sell his NFT on the marketplace, as project creator, you would receive 2.5% of the total value of the transaction, automatically.
- As a project creator, you can decide to customize the cover of the digital contract participants will receive. If that’s the case, you’ll have to send us all the artwork under JPG or PNG format. We have included a tab for you to paste a ‘Wetransfer’ link. If not, click on ‘auto-generate’ and our team will design the visuals of all contracts.
To submit your project, you will have to link your wallet. We support most wallets on the IC (PLUG, STOIC, INFINITY). If the crowdfunding campaign is successful, funds will be disbursed in the linked wallet.
After submitting your project, it will be reviewed by our team within 48 hours. Depending on the mandatory contact info filled in, we will contact you on Discord or Twitter to discuss:
- Potential changes to your project recommended by our team
- A launch date
- A KYC form: you will have to fill in a quick KYC form before your crowdfunding round launch date.
As soon as we have defined a definitive launch date for your crowdfunding project, we will add it to the “upcoming project listing” tab on our platform. After that, you’ll have to communicate about your crowdfunding project. A few promotion elements we would recommend include: (for more information about promoting your project, please review this article coming soon)
- Organise a Q&A or AMA session with your community
- Facilitate the communication with your future potential backers: people will have questions about your project and rewards.
- Make partnerships
After your project is successful:
If your project is successful and reaches its goal, congratulations ! Funds will automatically be transferred to your wallet, minus the 5% commission. All digital contracts (NFTs) will also automatically be disbursed to backers.
Keep in mind that the digital contract holder is entitled to the rewards, rather than the initial backer. This distinction is important to note, should the initial backer decide to sell his NFT (i.e. the rewards you promised him) on a marketplace.
You’ll also get access to a post-project admin panel, which will allow you to track rewards, as well as give you in live time, the list of all wallets currently holding your digital contract. When rewards are redeemed, it’ll be your responsibility to update it on the admin panel, to allow changes to be reflected on the CrowdfundNFT marketplace. For more information about the post-project admin panel, please review this article coming soon.
If unfortunately your project was unsuccessful in reaching its goal within the 30 days crowdfunding period, all of your backers will automatically be reimbursed, and you will not receive any funds. However, we encourage you to re submit a new project, with changed to make sure you can see your project through! :)