Crowdsourcing provides a method for members to fundraise through the distribution of TM
What is crowdsourcing?
Crowdsourcing is an effective method to fundraise or accumulate BitUSD or to distribute TM. Taupemist may hold Crowdsource events when most beneficial to the organisation in order to distribute TM to members and to capitalise on demand when Taupemist's reserve is high and the TM price is exuberant. The proceeds can offer a significant capital injection that can be used by Taupemist to balance a large invoice/or many to 3rd parties, agility to react swiftly to prime investment opportunities, to increase the financial capacity and capabilities of our existing financial services and to direct financial attention towards new innovation and endeavours.
Depending on the scale and diversity of the distribution, the BitUSD:TAUPEMIST market book volume will shift as members close buy orders and open sell orders, which unfortunately begets downwards price pressure therefor the properties and configuration of the crowdsource event should encourage safe, predictable and decipherable operation.
This defines a detailed insight into the utility of Crowdsourcing by the Taupemist organisation, however, the Crowdsource feature is open to all Taupemist members that hold the required membership.
How does it work?
A member may create a Crowdsource event where they may allocate a portion of their TM to be distributed to the crowdsource donators where each donator will receive a percentage of that allocation equal to the percentage of their donation(s) within the total amount donated to the Crowdsource. Once the Crowdsource begins, donators can participate directly through the transfer of BitUSD into the Crowdsource creator's Bitshares account, specifying the transaction memo crowdsource.
On conclusion of the Crowdsource period, the Crowdsource creator is obligated to complete the TM distribution within 24 hours.
When a member creates a Crowdsource event they have the ability to enable the Buyback feature.
What is the duration of a Crowdsource period?
Crowdsourcing events will take place over the period of one calendar month.
What is the Buyback feature?
The Buyback feature provides donators with the opportunity to buy back their BitUSD donation using TM, after the conclusion of the of the Crowdsource event. When the buyback is enabled, the donator will have the ability to buy back their entire donation in exchange for the amount of TM that they received in the distribution, which essentially transforms the Crowdsource feature into an interest-free loan.
How does the Buyback feature work?
Once the crowdsource concludes, the total amount of donations will be divided into the amount of TM allocation to determine the buyback price.
Donators will then have the ability to submit buyback requests to the crowdsource event via comments in on Crowdsource event Steemit article.
The Crowdsource creator will be responsible to declare the amount of BitUSD available to buy back, similarly to Asset Availability comments within the Gateway and Borrowing services.
The Crowdsource creator will be responsible for processing the buyback requests and when BitUSD is available, are obligated to process within 24 hours of the request. Crowdsource creators are incentivised to complete the buyback process as quickly as possible to increase their reputation with donators (and all members) which will increase their future potential to fundraise greater quantities.
How often is the Crowdsource creator required to declare the amount of BitUSD available for buyback?
The amount of BitUSD available for buybacks must not reside at $0 for a period greater than one calendar month. In this scenario, it will be considered a violation of the Crowdsource creators commitment to the donators.
Do donators need to request buybacks?
Donators are not obligated to request any buybacks and have the ability to hold, sell or trade the TM that they received, completely as they wish.
The TM price may increase or demonstrate positive price action and as such, it may be in the donators best interest to refrain from submitting buyback(s) as it may be more valuable to hold that TM.
This provides donators with a degree of insurance against the Crowdsource creators buyback performance.
How long is a Crowdsource creator required to provide/allow buybacks to donators and when does the Crowdsource (and Buyback) officially end?
The Crowdsource and Buyback period will officially end when either of these two conditions is met:
- The total donation amount has been returned to the donators.
- For a period of one calendar month, the amount of BitUSD available for buybacks has been greater than $0 and no donators have submitted buyback requests during this time.
If you have any questions or uncertainties, then please ask via a reply to this post.