Goal-Gated Private Sales
Goal-Gated Private Sales (GGPS) is a pre-sale financing tool specifically designed for pre-token stage Web3 protocols. For projects, securing adequate financing while maintaining investor confidence is particularly paramount. In response to this critical need, we at finceptor have crafted the Goal-Gated Private Sales (GGPS), a unique milestone-based financing model that bridges the interests of projects and their investors.
With this model, project teams have the freedom to focus on their milestones, secure in the knowledge that their next tranche of funding is assured upon successful delivery. This approach to financing puts investor interests and project ambitions on the same path, fostering trust and growth.
The capital raised through GGPS is secured and released in stages aligned with the project's roadmap milestones, ensuring that funds are utilized effectively and strategically. This approach empowers pre-token stage Web3 projects to focus on developing their product and community, not solely on initial fundraising. We ensure that the next round of funding is released only when your team has successfully achieved the predefined goals, facilitating a steady and strategic progression in line with your roadmap.
GGPS models offer a predefined set of terms that shape the agreement between projects and investors. These terms include the estimated Token Generation Event (TGE) date, the discount rate, the valuation cap, and, most importantly, the milestone deliverables. This framework provides investors with transparent and predictable parameters for their investments. Two distinct GGPS models exist:
1. GGPS-Democratic Model: In this model, the progression to the next funding release phase is subject to a vote by the investors, reinforcing the collective decision-making ethos of the blockchain community.
2. GGPS-Attainment Model: Here, finceptor Labs provides diligent oversight, releasing funds only after thoroughly assessing the project's progress at each milestone, ensuring steady, strategic progression in line with the roadmap.
By aligning the release of capital with the achievement of milestones, GGPS provides a solution to the challenges faced by pre-token stage projects in Web3. It's not just a financing model, but a strategic tool that facilitates sustainable growth, transparency, and mutual trust between projects and their backers.
Definitions
Milestone Pivot: This is when a project can redefine the deliverables, set a new date, and modify the associated budget and token release parameters for a particular milestone. This action needs to be approved by the investors.
Milestone Recalibration: A proposal that the project team can initiate within 7 days after a Milestone Challenge. This recalibration plan is a proposal to redefine deliverables and set a new date, along with reconfirming the budget and token release from the challenged milestone.
Roadmap Transformation: A comprehensive process that lets a project redefine all the parameters for the remaining milestones. This includes updating deliverables, reconfiguring dates, adjusting budget allocation, and revising token shares. This decision also needs investor approval.
Milestone Approval: When a milestone's due date is reached, the project needs to provide a delivery report, triggering a period of investor voting. If the milestone is approved, the project receives the assigned budget and token release.
Milestone Rejection: If a milestone gets rejected by the investors, the project team can initiate a Milestone Recalibration within 7 days. If the project fails to convince the investors with a Milestone Recalibration, the investors have the right to reclaim their invested capital assigned to the rejected and remaining milestones. The corresponding tokens would then be returned to the project team.
Democratic Version
Goal-Gated Private Sales (Democratic Version)
In this democratic version of GGPS, we use a voting-based mechanism to ensure a transparent and decentralized decision-making process. Investors vote on pivotal project aspects, including Milestone Approval and Milestone Pivot.
Milestone Pivot: Projects can propose a Milestone Pivot for one or more milestones, validated through an investor voting process. Such pivots can include redefining deliverables, setting new dates, and adjusting budgets.
Milestone Approval / Milestone Rejection: When a milestone's due date arrives, the project provides a delivery report, triggering investor voting. If Milestone Approval occurs, the project receives the assigned budget and funds release. However, if a Milestone Rejection happens, the project can propose a Milestone Recalibration within seven days. If the investors reject the recalibration or if no recalibration is proposed, the assets invested in the failed milestone are returned to the investors.
In this democratic version of GGPS, a voting-based mechanism is applied to ensure a transparent and decentralized decision-making process. Investors have the power to vote on pivotal project aspects, including milestone approval and recalibration.
Attainment Version
Goal-Gated Private Sales (Attainment Version)
In the Attainment Version of GGPS, we at finceptor Labs govern the process. We maintain rigorous oversight of project progress and milestone completion. We also allow for a Milestone Pivot for one or all upcoming milestones under specific circumstances.
Milestone Pivot: When a project's scope or objectives evolve, the Attainment Version permits a Milestone Pivot. All changes must receive validation from finceptor Labs.
Milestone Approval / Milestone Rejection: When a milestone is due, the project submits a delivery report to finceptor Labs. If the Labs grants Milestone Approval, the next funding tranche and token release is activated. If Milestone Rejection happens, the project can submit a Milestone Recalibration within a week. If the recalibration is rejected or not presented, the remaining funding assigned to the milestone is locked, and the project has the opportunity to reassess its goals and deliverables.
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