Tezos opened a VC fund, did they cheat with the investors
Aug 15, 2017 Posted / 4166 Views
The blockchains propose financial incentives for maintaining agreement on their ledgers, no blockchain has a strong on chain system that effortlessly compensates with the rules leading its protocol and rewards the protocol development.Thus, the first generation blockchains allow effectively, the centralized development teams or its miners to plan and design choices. Tezos basically has special approach by developing governing rules for its stakeholders to support the upgrades of their protocols which are then automatically deployed on the network.
Tezos is a decentralized blockchain platform that governs its own self by creating an accurate digital independency. Tezos facilitates official verification, a technique which precisely proves the accuracy of the code governing transactions and boosts up the safety of the most susceptible or financially based smart contracts. When the developer does a protocol upgrade, they can add an invoice to be paid to their address upon sanction and addition of their upgrade. This ideology helps to give a strong reason for participation in the Tezos core development team and which also decentralizes the maintenance of their network. It repays developers with tokens that have instant values rather than forcing them to look for business sponsorships, work for Internet fame, foundation salaries etc.
1. Tezos, which is a non profit platform that looks over the growth of the governance boosting blockchain protocol. Tezos, has announced the launch a $50 million venture fund.
2. Tezos wants to promote its own blockchain platform,with the money from the fund will be provided to the startups and developers building on the Tezos platform, with funds being drawn from its record setting $232 million ICO formerly this year, as well as unnamed venture partners and its own assets.
3. The blockchain is also swearing to bring up smart contracts, and also the use a proof of stake agreement algorithm by which the users can mine new blocks based on the amount of coins they hold.
4. Tezos stated while it is presently having an additional Bitcoin Cash tokens, created from the bitcoins, it has raised in the sale, it is thinking to slowly sell those assets.
5. As per the reports, previously, the project grossed around 65,627 Bitcoins and 361,122 Ethereum by July 13, when its ICO got completed. It is now the second highest ICO, having a more than $250 million fundraised by the blockchain project this week.
6. Typically, when a startup raise huge amounts of fundings like this, they first and foremost invest it in growth, research and development, or in marketing programs.
7. Tezos, on the other hand has decided to take a little kind of different route for their funding distribution.
8. Tezos update management in August issued a wide statement regarding the $50 million venture capital commitment saying that “We are extremely pleased to announce a commitment of $50 million in venture capital funding to companies looking to build on the Tezos platform. This capital will be partially deployed through venture capital partners to be announced, as well as through a direct venture arm. The innovation and growth of the ecosystem is the top priority of the Tezos Foundation.”
9. But did they cheat their investors by doing this? By looking at the different route taken by Tezos, there are some diversifications in the committed proposals, which were proposed prior to the sales.
10. Meanwhile, the other remaining funds of the ICO will slowly expand and will be invested in more conventional investment vehicles like, bonds, precious metals, stocks etc.
11. The motive behind the VC fund is to make more third party developments for the Tezos blockchain, which will help for the growth of the Tezos platform.
12. Tezos has stated that “This will ensure that our organization is resilient in good times, and bad times”.
13. Tezos is bit by bit is trying to convert it into the previous pattern of currency and then investing it in unexciting things like, bonds, precious metals, stocks. which will be such a disappointment to their investors.
14. While it can not be firmly said that Tezos have cheated thier investors or not, but many of them must be disappointed with the statements and decision regarding the funds raised in th VC. We can still wait for any kind of futher advancements in their strategies which may in case cheer up the investors.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.