Etherplan - Investment Plans On Ethereum!

DonaldMcIntyreDonaldMcIntyre DenverMember Posts: 17
This is to present Etherplan, an investment planning and trust service based on Ethereum. Actually the investment manager, investment fund and the trustee are all Ethereum!

I hope to read your comments and please help make Etherplan a reality!

I am open to seed investors, developers, and entrepreneurs who would like to join and share the Etherplan vision and passion for Ethereum.

Article link: http://www.naation.com/2015/06/10/business-idea-etherplan-investment-plans-on-ethereum/5859/

Website: http://etherplan.com/ (not much here yet!)

Best,
Donald

EDIT: I added this explanation to clarify the role of smart contracts and AI in Etherplan.

A smart investment plan is one that is planned and executed by AI programs on Ethereum according to customer profile, needs and set parameters.

Investors may change instructions and parameters when they want to, but if the customer passes away the program will execute the plan on behalf of beneficiaries until the funds are depleted.

Plans may be initiated by individuals or groups which facilitates the use of smart investment plans by organizations for retirement and pension plans.
Post edited by DonaldMcIntyre on

Comments

  • sjosephsjoseph Member Posts: 30
    Great idea...

    Quick question on revenue model ( might be applicable to similar revenue models too)
    In scenarios like - 'Setup fees on money in', isn't that a race to 'zero' model. If the 'investment etherplan' is a contract on Ethereum, anyone should be able to write a contract that feeds money in? What prevents another contract from feeding money in at a lower fee? Also what prevent another person from writing a similar 'investment etherplan' based on your contract (assumption is the the code will be open-source'ed) and charging even lower..

    For the reasons above I feel the revenue models for such offerings on ethereum or in decentralized models might be different from revenue models in centralized offerings where the 'trusted party' extracts rents as commissions.

    Thoughts ??

  • DonaldMcIntyreDonaldMcIntyre DenverMember Posts: 17
    It has been a problem for me to find a model on decentralized platforms. I wrote an article about that here: http://www.naation.com/2015/01/24/6-business-models-for-the-ethereum-network/5738/

    You are right, all processes that involve open source software, where there are no network effects, tend to zero.

    Etherplan is an interface for customers to build their Decentralized Trust Funds - DTF's (DAO's that act as trust funds) once the DTF is built it is open on the blockchain and it may be replicated.

    The "money in" charge would be a fee for building the DTF. In a scenario where customers are technical and can write their own DTF it is not very compelling. For customers who would hire an Ethereum developer it is because it would cost the same or less.

    Also, once DTF's are built they need to interact with the world to:

    - Understand customer needs
    - Invest, see and understand market trends,prediction markets
    - Receive new customer instructions while customer is alive (DTF's are not irrevocable trusts)
    - See, through oracles, and understand events to decide whether to payout funds to beneficiaries or to keep investing
    - Track and confirm beneficiary and beneficiary accounts to payout funds in the case of trigger events

    I am non-technical, but Ethereum is not the "complete" solution for AI so I think Etherplan may provide many complementary services to customer DTF's.

    Again, it's difficult to capture value in such an open environment!

    What do you think?
  • sjosephsjoseph Member Posts: 30

    Did you see the note on USV's investment in OpenBazzar. Looked like they too were grappling with this question on how to monetize.

    https://www.usv.com/blog/introducing-ob1
    "How can a business that is consciously architected to undo network effect defensibility, one that is tearing down the walls and filling in the moats that every paper on market based competition has insisted are necessary for success… succeed"

    Will be interesting to see how https://streamium.io/ is planning on making money.

    Just like it took a few revisions for starts-ups at the dawn of internet to hit the right revenue models, I assume it will take a few cycles for the decentralized apps to find the right revenue models too.

    Doubt it might be ads though but am sure there must be a revenue model that is uniquely native to DApps...

    I wonder if the core services might be free but charge for Oracle services ( that bridge the fiat with the crypto world)
  • DonaldMcIntyreDonaldMcIntyre DenverMember Posts: 17
    Yes, decentralization is about redistributing and promoting equality. No competitive advantages. I think, as a free market, the low profit models will either subsist "for the love of it" like an open source donation based business or just shut down.

    I think Etherplan may develop as a no network effects business,but with moat in the brand, design, and low cost service. Or there could be a network effect leveraged by being part of Ethereum as a prominent brand there (like inheriting the moat of Ethereum).

    On the other hand Etherplan may have its own network effects by connecting customers, beneficiaries, investment products, exchanges, and prediction markets to form a valuable community of services and users. Also,independent financial advisors may use it as a back-end for their personalized relationships with their customers.

    Finally Etherlan may be the big Oracle, like you mention above, that charges for transmitting verified information which is critical to execute the smart investment plans.

  • sjosephsjoseph Member Posts: 30

    @DonaldMcIntyre I found the revenue model from dgx.io pretty interesting... Maybe applicable to what you are doing. Kind of like trust ratings from S&P, Moody's and Fitch

    "We are a Root of Trust Certificate issuer and signing authority for participating custodians, auditors, and individuals to allow them to conduct business on a decentralized peer to peer platform such as Ethereum. "
    Ref: https://www.reddit.com/r/ethereum/comments/2sm0dn/building_the_first_smart_asset_company_on/
  • DonaldMcIntyreDonaldMcIntyre DenverMember Posts: 17
    edited June 2015
    It seems they provide a service on the edge of the network where they guarantee that the underlying assets outside he blockchain are legit.

    In that role, as an access provider and reputation agent, Etherplan could be a ratings agency for participating financial providers. Also, Etherplan may verify and confirm KYC, AML and identity of customers and beneficiaries.

    The Etherplan ecosystem has 5 levels:

    1. Customers, beneficiaries, and financial institutions: All external participants that need to be "sold" to join.
    2. Etherplan platform: It's part customer UI and part financial marketplace. Where the above participants come to connect, build SIPs or sell their financial products.
    3. SIPs: The DAOs that will be built for/by customers and their beneficiaries that manage the money and execute trust instructions.
    4. Oracles: That provide critical information for SIPs "see" the real world to work properly.
    5. Ethereum: The base platform where everything takes place and other exchanges and securities may be found.

    I think that at the edges, somewhere between 1 and 2 there is an opportunity to capture value.
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