coincodex.com
Key highlights:
- Flare Network and Lena Instruments are launching CloudFunding, the next-generation launchpad that keeps investors' funds safe
- CloudFunding is a unique launchpad where investors can get their funds back at the end of the event, and investors will be rewarded with IOUs before the new project's token is even released
- Exciting new projects can be funded with CloudFunding and make a fast and secure step into the blockchain world
Flare Network, a new Layer 1 blockchain developed on the basis of connecting everything, has announced the launch of a new crowdfunding launchpad in collaboration with Swiss infrastructure and blockchain software firm Lena Instruments. The launchpad called CloudFunding was developed to bring an innovative dimension to the concept of crowdfunding.
CloudFunding will retain custody of the major investments of contributors, while contributors will have unique benefits and exclusive access to chosen crypto projects through multiple eliminations. Crypto launchpads in the market fund startups using tokens that contributors will allocate to support startups, while CloudFunding has developed a model that ensures contributors always retain their core investment. This concept of CloudFunding has created one of the lowest risk and secure crowdfunding mechanisms within the crypto industry.
CloudFunding's Unique Launchpad Model
In CloudFunding's unique model, contributors can set aside 1% to 100% of the rewards generated by their principals to fund projects they believe in, while protecting their original investment. Principals produce awards with wrapped FLR/SGB capital. Investors will have access to an IOU of the project token they contributed prior to the token generation event, which will be listed by Flare's DEX partners in return for their contribution. IOUs can be freely exchanged or kept in the wallet until the token is released, without having to wait for the project's native token to be distributed.
The biggest benefit for projects launched through CloudFunding is that they have a steady cash flow at the end of each award period and throughout the entirety of their community's contribution. Projects that get a chance to be featured on Launchpad can use this cash flow to keep their communities updated on milestones and deliverables, fund development, pay bills, and find a way to create a long-term business plan. Supporters, on the other hand, can have peace of mind knowing that they retain custody of their initial investment throughout the process.
CloudFunding has divided the campaigns into two periods and offered features not available on other launch platforms. The two periods, the Raise Period and the Yield Period, provide many benefits for both the project and its contributors.
Raise Period: Community-provided SGB/FLR tokens are wrapped and locked in a smart contract to reach a specific Target Amount before a deadline set by the project team. The Raise Period is completed successfully when the community contributes the target amount. If the Raise Period fails, the policy and rewards accrued so far are returned to the contributors as the project cannot be secured.
Yield Period: It is the period in which the generated awards are donated to the project. Projects that have not yet launched native tokens will distribute token IOUs to the community and backers will be allowed to start trading. The Yield Period determined by the project can last for a maximum of five months, and at the end of the term, contributors will automatically receive their original principal and project tokens in proportion to the IOUs they hold.
Projects listed on the launchpad benefit from smart contract audits, networking, legal advice, and other financial services provided by the CloudFunding team. In addition, CloudFunding projects can look forward to instant liquidity on partnered decentralized exchanges (DEXs) upon the completion of their crowdfunding campaigns.
Flare CEO and Co-Founder Hugo Philion had the following to say about the launch of the CloudFunding platform:
“CloudFunding is an excellent example of how developers can leverage decentralized data infrastructure embedded locally on the Flare blockchain. CloudFunding creates a win-win-win situation by using Flare Time Series Oracle as a mechanism to contribute to exciting new projects. Flare gets another highly incentivized FTSO provider to provide accurate price data to the network; new projects provide early access to community funding and support; and Flare token holders get the opportunity to participate in new and exciting projects with zero risk.”
Hugo added that Flare Network is pleased about Lena Instruments choosing Flare and Songbird infrastructure to build CloudFunding on.
Laura Moreby, Lena Instruments Head of Communications and spokesperson, said that Lena Instruments will continue to build on Flare and Songird to "improve Tier 1 access for the public, projects and institutions." "We promise to continue to offer smart, essential, safe, fun and user-friendly products that will accompany Flare on its path to success," she added.