milestoneBased: The battle for decentralization
Decentralization. It’s a word that has been bouncing around in the world of cryptography since as far back as the 1980s. But with the advent of Bitcoin and the subsequent boom of Decentralized Finance (DeFi), the broader community is finally beginning to see the many benefits that decentralization has over traditional, centralized solutions. The innovation sector and the private funding world of VCs are paying close attention to these developments, and those crypto-savvy enough are piling in, looking to become early-movers.
milestoneBased is decentralized, both in its underlying architecture and in our vision for its future. The protocol is built with smart contracts and on the blockchain, ensuring both its security and decentralized potential. And while the protocol is currently being built by a central team, our roadmap includes key steps that will guide us into full decentralized governance under our DAO.
But why is our decentralized solution better? Let’s dive in 🌊
The problems with centralized solutions
There are three main problems with centralized funding solutions.
1. Capital inefficiency
Investors are locking up more money at later deal stages, reducing their expected returns. At the same time, startups are struggling to maintain cash flow through development due to poor allocation management, causing them to stall or fail.
2. Process inefficiency
Startups can spend months, and even years, searching for investors. Even once they’ve found capital, the process of deal-closing is long. This represents time lost for both the investor and the startup.
3. Ineffective collaboration
Investors lack the tools to effectively help the projects they’re invested in. Even if they notice issues they can assist with, it’s often too little, too late. This leads to missed milestones and runaway costs.
In crypto, these three problems compound into poor returns for investors and poor outcomes for the startup. As it stands, early investors are incentivized to cash out as early as they can. For new projects — where token sell pressure can break a project in its early days — there is an immediate need for a platform that gives early investors the confidence to stick with a project in the long term.
milestoneBased: Improved with decentralization
milestoneBased addresses these three core problems in our decentralized funding solution. With us, investing is streamlined and efficient, and risk is minimized through the use of trustless smart contracts.
First, we address market inefficiencies by tying funding to key project milestones. Funds are locked until certain milestones are met, at which capital is released. Because of this, investors don’t need to lock up a full investment in a stalled project — if things aren’t going to plan, capital can be withdrawn and losses mitigated.
Second, we streamline the investment process for all parties. Using milestoneBased, projects create detailed roadmaps and milestones in their profiles and advertise themselves to the world. Investors can browse projects and decide to invest accordingly, and well-designed workflows simplify every step to a few clicks.
Finally, collaboration is simplified through in-platform voting mechanisms. Investors and projects alike can propose changes and release funds by triggering a simple vote, and if the vote passes the result is instantly enacted. No need for long meetings with large groups of stakeholders struggling to come to a consensus — votes can be taken within a set timeframe, allowing everyone to contribute when they have the opportunity.
Because of the way the milestoneBased platform involves investors, stronger relationships form between startups and their backers. This gives investors more incentive to stick with projects in the long term, ultimately reducing token sell pressure. In this way, the mB solution benefits all participants in the market — not just those that invested pre-public.
Building a better tomorrow ✨
Modern markets move fast, and traditional, centralized solutions are failing to keep up. By leveraging the power of decentralized, trustless smart contracts written on the blockchain, milestoneBased offers investors and projects alike a better way to fundraise, and a smarter way to build.
Want to learn more? Make sure you check out our website and follow us on our social channels for more updates as we approach our launch 🚀
Visit the Web-site: http://milestonebased.com/