Dear fellow Bounders,
Our seed funding has come to an end. To be honest, it was not as smooth as we wanted it to be and there were some mini hiccups along the way. With that said, however, we managed to sell out within 36 hours! That really puts into perspective the trust and belief that our early investors have in us.
The team has reflected heavily and in this article, I will go through some of the issues we faced during the seed funding and what solutions we came up with to ensure that history doesn’t repeat itself during pre-sale.
As the seed fund contract was posted in our Discord on 4th of Jan 2022 12 PM UTC, we had a mini-review done by Olympian IndyZa regarding the contract. You may refer to his post here. In his review, there were some concerns regarding the contract that he had and thus we had a discussion in the community chat.
Our dev joined us in the discussion and this was his response to the concerns that were pointed out.
Response:
The risk of 1 person owning 3 signatures in multi-sig wallet with 3/4 policy exists in every multisig wallet.
Answer: You can never 100% ensure that any given multisig consists of unique people only. In our case the multisig consists of different people. The fact that 2 wallets were funded from the same source — so what? We are a team at the end of the day. One guy bought -> sent some funds to another guy. Nothing bad about it. The fact that wallets are 1/2 days long — we are reducing risks by creating a new wallet for each team member. Having new wallets do not correlate to an increased risk factor at all.
Risk of funds being stuck forever.
Answer: Again, the risk of having internal disagreement is unavoidable. This is something that any multisig-owned project could be prone to. We still believe that having a multisig in place is better than a contract owned by a single party.
Withdrawal Risk.
Answer: This is by design, not by mistake. Once the seed funding is finished, we will withdraw the funds raised to pay for several services as discussed previously. This includes KYC and more. This is not a risk, this is essential.
No claim token or claim functionality.
Answer: This is correct. You are right that the contract has no claim functionality. The ERC20 token has not yet been created at this point of time. The token will be created before the public offering. The public offering will operate in a way that the protocol automatically adds liquidity to a BND-BUSD LP pair and sends a certain % of funds raised to the Treasury. The public offering contract will have a claim functionality. Investment info (info about how much each member invested) is publicly available on the seed funding contract. This information will be used by the public offering contract when deciding how many tokens to allow a user to claim.
The way that our seed presale contract logic was set up is that no tokens are given in return when participants invested. There was also no claim functionality that was immediately available in the seed presale contract’s code that would allow investors to claim their tokens.
Reasoning?
We were actually planning to conduct all three rounds of sales first, including the public sale, and only after that to allow investors in all or any of the previous rounds to claim their BND tokens.
Apart from IndyZa, the community also spoke up about this concern. The majority were in favor of having a claim functionality at the start right when they buy in, as they would want to have something tangible to maintain their trust in us. This also proves their ownership of the token. We heard this loud and clear and as such we have decided to take action.
Solution
The team has discussed this with the devs and have decided to come up with a new contract within 24 hours to allow participants to claim their seed funding tokens. This token will be called preBOUND and when you buy at pre-sale and public offering, this will be the same token given to you in return.
Once the contract has been created, we will update our website as well to reflect the changes and allow seed sale investors to claim their preBOUND. In order to claim your preBOUND, you will need to connect the wallet that you used to invest in the seed sale and click on “Claim preBOUND”. Doing so will automatically send the number of tokens that you are entitled to straight into your wallet.
Future Changes
When you participate in the future presale rounds, preBOUND will be automatically sent to your wallet when you buy in, meaning that you will no longer need to claim preBOUND manually.
On launch, preBOUND is exchangeable at a ratio of 1:1 with BND.
There were a few members who were whitelisted that wished to enter and had problems with connecting their wallet addresses and signing on the KryptoSign link.
Solution
The team has decided that in the future, we will show the whitelisted members the excel sheet containing all the signed addresses before the sale starts. This is so that participants can double-check and confirm that their address is inside before we initialize it on the smart contract.
We will also come up with how-to tutorials showing how to sign Kryptosign and purchase preBOUND on the website.
One thing that we did well that should be touched upon is the team’s lightning-fast response to IndyZa’s concerns. Some of the community were shaken by the news and it sparked a bit of fear and panic. Thankfully, the team and the devs worked hand in hand and managed to quell any sort of FUD.
With this, we were able to maintain the trust that the community had in us and it presented how responsive and transparent we were in our thought processes.
Overall this seed fund was a major success as it demonstrated the confidence, trust, and also the belief that our community has in both the team and the project.
From here on out, the team will continue to take swift action in addressing any questions that the community has and strive to be even more open and transparent on what happens behind the scenes. We understand that we might have made some mistakes regarding the contract but we will definitely learn from this and make BND claimable on launch. A huge shout-out goes to IndyZa for pointing these concerns out and bringing awareness to the community. This really gives us a lot of confidence in using him as a peer-reviewer for our project!
With that being said, since we were successful in our goal of selling out seed funding, we are now able to continue with the RugDoc KYC, finalize protocol logic, Peer-Review and also spend on marketing/partnerships.
Thank you all for reading and supporting the project!
In the next article we will look into:
Treasuries — A Breakdown
ShadowProof Reading — ACW
Twitter: https://twitter.com/BoundlessDCFDiscord: https://discord.gg/boundlessdcfWebsite: https://boundless.money/