1. Product name
2. Product description
“FundSafe" is a blockchain escrow service to prevent rugpull. The combination of escrow + custody + governance helps blockchain project teams avoid dereliction of duty, embezzlement and lax management. There would not have been a second Terra or FTX crisis because governance (investors) have the authority to use funds.
When selling and raising funds for NFTs or FTs, problems such as embezzlement frequently occurred because the traditional method transferred funds directly to the seller.
However, escrow services can solve those problems. Once you use FundSafe, funds will be kept in the contract of a third party “FundSafe”, and to use them, a fund use plan must be drawn up and a vote registered to obtain approval from investors (DAO).
Investors vote against the plan to prevent withdrawals if the plan to use the funds is suspicious or unreasonable. Accept withdrawals only if they are not.
[Vote for approval of withdrawal]
[All withdrawals must pass the approval vote]
These escrow services address the following issues.
- Project Team’s disappearance
1.1 Disappearance with token/NFT sales funds
1.2 Disappearance with funds after liquidity release
- Selling token at the market price
2.1 Selling their current token at the market price.
2.2 Selling more tokens at the market price after additional issuing
- Token mortgage
- Unilateral unreasonable liquidation
- Other embezzlement and breach of trust
‘FundSafe’ combines existing fragmented and partial solutions to enable comprehensive risk management.
[Risk management by improving and combining existing methods]
FundSafe transfers token authority from the project team and entrusts the tokens it holds. After the project is registered, the project-only contract is distributed to entrust the project funds and tokens. Funds (coins) and tokens can be withdrawn if approved by the DAO in a vote to request the use of funds. Funds and tokens will not be withdrawn if DAO approval is unsuccessful.
A Snapshot is created when the vote is confirmed.
FundSafe’s revenue model is to share revenue generated by fund management linked to the DeFi platform.
3. Team information
Star Inc. is a blockchain company in South Korea, founded in 2022. Star moved into the Seoul FinTech Blockchain Lab with the support of the Seoul Metropolitan Government as a FundSafe project, and the Seoul Metropolitan Government is an incubating company. Star Inc. is currently being accelerated by the SS2 Investment. Star Inc. have also passed the Kibo Venture Camp and is waiting for the final result.
Website : www.starinc.io
Docs : https://docs.fundsafe.io/
Discord : Be_A_Star
Twitter : https://twitter.com/beastar_2023
Medium : BeaStar – Medium
Youtube : https://www.youtube.com/@BeaStarGo
- Youngdae Ahn / CEO, CTO
17 Years of Development and Business
Crypto Exchange, Launchpad
Audit Solution, Overall project Management
5 Years of local development experience in Japan
Kyungnam University, Computer Engineering
- Kevin Kwon / CNO
6 Years of Overseas Business
Coinbox / Team leader of Overseas Business Department
MisungMpro / Overseas Customer Interpreter
Kyonggi University, Business Administration
- Woody Kim / CM
4 Years of Marketing
Fair Election Commission / Web development
Brain Solutions / Marketing
Taste Prague Biz Ops
Woosong University, Occupational therapy, Social welfare
4. Grant proposal
We apply for a grant of 400,000 USD(2,541,066 KLAY) to support the development.
- Development (180,000 USD/1,143,478 KLAY) : ~ 2024/03/31
- FundSafe detailed features development
- Recruiting Developer
- Marketing (160,000 USD/1,016,428 KLAY) : ~ 2024/03/31
- SNS Promotion
- Event and user rewards
- Recruiting Marketer
- Operating Expenses (60,000 USD/381,160 KLAY) : ~ 2024/03/31
Milestone 1: Snapshot
Expected completion date: 4 weeks
When the withdrawal request vote is confirmed, DAO is generated by snapshot , and voting registration is notified
Milestone 2: Launchpad API
Expected completion date: 4~5 weeks
Launchpad Interworking API Implementation
Milestone 3: Voting weight value
Expected completion date: 3~4 weeks
Vote - Weight Value Test and Activation
Milestone 4: Community Auto-Creation
Expected completion date: 3 weeks
Implementation of community auto-creation
Milestone 5: DeFi deposit worker
Expected completion date: 6 weeks
Implementation of Auto-Worker to deposit on DeFi
Milestone 6: Custody
Expected completion date: 6 weeks
Implementation of Custody
- Investors can also participate in ICO/INO of unknown projects with confidence.
(Right now, investors can’t invest freely because we don’t know when the unknown project will disappear.)
- As DAO’s influence grows, the treatment of DAO will be better than it is now.
(The current project team doesn’t listen to DAO after the ICO/INO)
- Project performance will be improved by reflecting the opinions of the project participants better than they are now.
(Because participants’ opinions are the needs of the market)
- Can prevent a sharp drop in the market price due to the mass sale of governance tokens by chain.
(Currently, the market price is falling frequently due to selling ICO/INO sales funds or eco funds at once.)
- The purification of malicious projects will eventually raise awareness of the blockchain.
We are currently at PoC stage. Our early growth strategy is to onboard the project team through our existing launchpad platform. The funds collected through the launchpad is automatically deposited to FundSafe. We have made partnerships with 11 teams, and they are launching the project at our launchpad.
In the past, escrow services were not popularized. However, escrow services have become mandatory since the Half Plaza (One of the biggest scam in Korea) incident in Korea in 2003.
Rugpull is currently prevalent in the blockchain industry. Especially recently, there have been very large Rugpull incidents such as Terra Luna and FTX continuously. Due to these events, blockchain regulations are getting stricter, and investor protection is becoming more important.
Whether escrow services are mandatory, so is Web3. Currently, all virtual asset regulations are under way to protect investors. FundSafe, an investor protection platform, is the future.
We are looking forward for your good review.
Thank you so much for reading.