DONUTCOIN was first envisioned by Matthew Rohdie, founder and owner of Carpe Donut LLC in Charlottesville VA. The first strategic connection was formed with Braid Development confirming their readiness to develop a blockchain on the ERC20 standard, as well as the supporting website development based on the budget parameters, as listed below. Work with the Braid team is currently envisioned as a fee for service relationship.
Initial legal consulting has been through Woods Rogers PLC, a firm with extensive experience in ICO preparation and implementation. While it is unclear at this point if Woods Rogers will be available to develop this ICO, their overall guidance has been invaluable to date.
Marketing service have not yet been confirmed, but initial consultation with Flourish Digital Media is ongoing to define a scope of work for this project. Still undefined is the role of CEO and/or CDO, to bring direct management and seed capital to bear.
An initial budget of $290,000 is proposed, to be allocated as follows:
1. $80,000: Development team, initial implementation of website and ICO-ready blockchain, redemption/exchange, and initial management post ICO. No equity allocation for development at this time. This is a fee for service relationship. Ongoing development services will be allocated from project revenues to ensure reliability.
2. $50,000: Carpe Donut LLC reserve for initial redemptions. These funds are to be held in an operating reserve, to cover the hard costs of the potential redemptions of the pre-ICO issued tokens. This is adequate to cover all real costs of over 3000 donut shipments, which reflects a pre-ICO sale of 300,000 tokens (100 tokens per redemption shipment). The post ICO target market value of each token is $.35, so a pre-ICO sale of tokens at $.25 can exceed 300,000 tokens without threatening the backing of the token by product. Carpe Donut LLC is to be a primary equity stakeholder.
3. $30,000: Legal.. Formation of the operating LLC (or structure TBD) and governance elements. Insuring SEC compliance is likely to be an expensive sub- component of these services, particularly in light of confusing and ambiguous SEC warnings as of Jan 1 this year. Expected to be fee for service.
4. $60,000 Marketing. This service is crucial to attracting appropriate attention to the project within the crowded market space of ICO’s and crypto currency. Marketing services may also be directed towards engendering pre-ICO investment, making the development of the project amenable to incremental progress. This budget amount may also be balanced against equity considerations.
5. $20,000 Engagement to other producers, development of a replication model. The long term vision of DONUTCOIN is the first of a series of organic food backed tokens, operating as a sub exchange to promote and stabilize crypto-adoption and organic and regenerative food production.
6. $50,000 Reserve. These funds should be raised in order to incentivize the CEO/CDO, as well as to provide some buffer for overruns in other areas, and to address unbudgeted expenses critical to the launch of the project.
Long Term Vision
DONUTCOIN should be the first of many crypto tokens following a pattern of direct redemption of high integrity goods via ERC20 smart contracts. By connecting the value of the token to familiar, desirable, edible goods, the value of these tokens should form a stable base of value. We expect these tokens to eventually trade against each other on an exchange, which can be developed using a portion of the capital raised by each token. A crucial aspect of this exchange must be a curation function, in which only high integrity producers are included within this “brand” of tokens.
By maintaining consistency in this way, and making this type of capital access easy to adopt for these producers, a virtuous cycle can be attained. Investors should receive long term, stable returns, consummate to the risk undertaken in supporting these tokens.