WePower - Renewable Energy for All or the Power of Token Fundraising

cryptotaofficial (56)in #blockchain • 7 years ago

One of the most interesting aspects related to blockchain startups is their approach to attracting initial investments via token sales. Token sales being something between IPOs and Crowdfunding turned out to be so efficient that in some cases projects had to finish the sales ahead of schedule because they were out of tokens. Some startups gathered millions of dollars in investments in a matter of hours. In other words, one truly revolutionary thing about blockchain economy is its incredible efficiency in attracting funds through ICOs. The catch is that this scheme of initial fundraising has different benefits for investors of different calibers. First, the tokens have a real utility within the platform; they are exchangeable for any valuable output in the form of products and services produced by the platform. Purchasing tokens on the early stages allow consumers to buy project's services cheaper than their nominal cost. The second aspect is that a further development of the project leads to increase in tokens' value. There is a limited number of them, and the more people begin to use the platform the higher the demand for tokens. For the startups, ICO gives an opportunity to receive financing at the same time staying independent from its investors which is not the case with the offering of shares.

An interesting example of how this system works in practice is the financing of Green Energy production. Organizing the production of renewable energy requires significant financial resources in its initial stages when it's necessary to build the power plants and delivery infrastructure. WePower network offers an innovative approach to the financing of Green Energy projects through an integrated blockchain platform where all the future energy production is represented by tokens. This way the consumers can buy energy in advance by purchasing tokens. At the same time, those funds are used to finance the early stages of energy projects’ development. Also, purchasing energy in advance allows buyers to benefit from the significantly lower prices. The new startups interested in the production of renewable energy can organize fundraising through the auctions on WePower platform where they can sell the energy, produced in the future, via the distribution of energy tokens. It's important to emphasize that the value WePower energy tokens is defined by an actual liquid asset - electric power produced by the companies connected to the WePower network. They always can be redeemed for the cost of consumed electricity, and what's interesting this also allows platform users to perceptibly reduce their energy costs. In a way, the platform facilitates a direct connection between the producers of green energy and its consumers and makes the energy market more transparent. What's interesting, the WePower project got approval and support of the United Nations and the Ministry of Energy of Lithuania for its innovative approach to tackling the problem of global pollution and climate change.