Adel ▲ Opinion ▲ Blockchain Startup Expertise

▲ Incubator Series

By:  Gabriel Dusil, Co-founder & Board Member, Adel
Jessica Allen, Blockchain Enthusiast & Social Media Expert

Blockchain Startup Expertise

With most new technologies, it’s rare that mainstream investors dive in and take risks with the unfamiliar and untested. Organized crime, on the other hand, will invest in cutting-edge technologies to drive their initiatives, just like any legitimate business. Criminals use the internet, mobile phones[1], encryption technology, instant messaging, and social media. But none of these technologies have sustained a bad reputation like Bitcoin.

From its launch in 2009, bad press has littered headlines involving Bitcoin, partially due to the Silk Road marketplace[2], the Darknet[3], and other platforms that maintain their anonymity, finance terrorism, traffic drugs and allow them to launder money. During this period, investment capital in blockchain was a mere 93 Million US$ in blockchain investments[4] according to CB Insights[5].

From 2014 to early 2016, VC funding increased tenfold to over 993 million US$. A report by FinTech Global[6] shows 2016 alone closing with half a billion US$ in funding. Within this figure, non-finance related blockchain projects increased by 325% compared to 2015, confirming that blockchain is more than just a FinTech phenomenon. Despite healthy growth, Bitcoin continues to have a negative reputation to some. What is needed to grow venture capital funding to $5 billion, $50 billion and beyond? One approach led by the blockchain incubator, Adel Ecosystem, Ltd.[7], has been to establish standard business practices to attract mainstream investors and business experts. Their vision is to develop projects with a commitment to a philosophy of integrity and regulatory compliance.

Despite bad press, Bitcoin has established a niche success. Creating this market presence was inspired by a vision of a stateless and decentralized currency. Similar to how Skype disrupted international calling revenue and Facebook and Twitter uprooted journalism the notion of decentralizing money hadn’t been considered until Satoshi Nakamoto’s white paper in 2008. Until this point money was considered authoritarian, not to be challenged. Bitcoin continues to be a contentious issue for governments and banks. But those same institutions recognize the value of blockchain as a technology.

However, blockchain is far from a mainstream success. Its relative newness, combined with scams, hacks, anonymity and legalities, prevent blockchain and cryptocurrencies from becoming a “household” technology. Angel and VC funding communities currently view blockchain as too complex and volatile to be considered a viable investment vehicle.

To pull blockchain out of the Darknet stigma, an era of integrity is required. According to Market and Markets[8], blockchain technology will be worth 2.3 billion US$ by 2021, and is expected to grow at a Compounded Annual Growth Rate (CAGR) of 61.5 percent. It is the collective responsibility of Adel to change the perception of blockchain and cryptocurrency and to legitimize this technology by creating ethical, moral, and legal platforms. Ethics and compliance will fuel a wave of mainstream investors entering the crypto industry and establish confidence with serious investors. Besides regulatory oversight, this responsibility lies in equal measure with blockchain service providers. Sustainable and profitable services, in the long term, establish confidence with the mainstream investment community.

Figure #1: Idea to Business Plan to Projects – Life Cycle

 

Co-founder and board member, Gabriel Dusil added, “At Adel, we set out to create a powerful blockchain ecosystem with a spirit of integrity. Our aim is to have passionate and talented members who have a collective goal to be successful. Our approach to achieve this goal is through a platform that incentivises the contribution of ideas, converts those ideas into business plans, and launches profitable projects.”

About the Authors

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

Jessica Allen

Jessica is a blockchain enthusiast and social media community expert with over 25 years of technology and 15 years of digital marketing experience.  As a mother of two, Jess is passionate about blockchain’s potential to innovate industries, unite communities and create a sustainable global economy.  She brings the ability to create conversations with anyone, at any level, about blockchain use cases and potential.  Jess is active on social media @TheJessAllen and volunteers her time with the Isha Foundation to help share the benefits of yoga and meditation as fundamental tools for human transformation.

References

[1] https://en.wikipedia.org/wiki/Organized_crime#Pre-nineteenth_century

[2] https://en.wikipedia.org/wiki/Silk_Road_(marketplace

[3] https://en.wikipedia.org/wiki/Darknet

[4] https://www.cbinsights.com/research-blockchain-transcript

[5] https://www.cbinsights.com/

[6] http://fintech.global/blockchain-cryptocurrency-startups-hit-record-funding-in-2016

[7] www.adelphoi.io

[8] http://www.marketsandmarkets.com/Market-Reports/blockchain-technology-market-90100890.html

Adel ▲ Opinion ▲ A Collaborative Blockchain Incubator

▲ Incubator Series

By:  Gabriel Dusil, Co-founder & Board Member, Adel
Jessica Allen, Blockchain Enthusiast & Social Media Expert

A Collaborative Blockchain Incubator

Most blockchain initiatives had a singular goal: to introduce a new blockchain platform (Ethereum, July 2015; Lisk, May 2016; Waves, January 2017). More recently, projects began to appear to focus on launching a more fintech-focused service linking blockchain to gold such as Digix Global[1], or Ether ETF, the first ever Ethereum-related Exchange Traded Product (ETP) in the United States[2].

With so much innovation in blockchain, is there a market to consolidate ideas into a single platform?

  • What about an ecosystem that encourages diversity across many industries with a vision of collaborative success?
  • Similar to the crowdfunding success of Kickstarter, a startup incubator that will legalize projects and help them be successful.
  • A single platform that unifies people from various industries, disciplines and regional backgrounds to accelerate idea development and implement real-world projects.
  • A community that enables innovation and equity ownership in projects.

The incubator model[3] has proven itself effective because people bootstrap ideas into viable projects without requiring exorbitant amounts of seed capital. Combining startup incubation with collaborative workspaces[4] is a rapidly growing phenomenon. These environments provide local space for startups to form and allow users to share resources and expertise to cross-pollinate ideas. They leverage business services like human resources and effectively manage funds.

Economies of Scale Through Collaboration

These new approaches to startup incubation demonstrate the need for efficiency, cost savings, and community in order to give ideas momentum. Efficiency is created by using investment funding in an ecosystem where multiple industries work together. Sometimes the best ideas come from disparate disciplines joining together to create something new which could not have been realized in isolation. The relationship between medicine and engineering has proven this synergy for several decades[1].


Figure #1: Adel Community Modules

Merging real-world incubator initiatives with virtual collaborative workspaces is the vision of Adel Ecosystem Ltd. Adel’s global incubator will include six online modules (Figure #1) with the intention of fostering collaboration.

  • A collaboration module will be a discussion forum to fuel ideas, as well as develop business plans for ideas that the community supports.
  • A voting module will enable a democratic vote by members.
  • A project module will show a bi-weekly status of project operations and success metrics.
  • A market module will be used to sell products and services from those projects, as well as post job vacancies in the various projects. Addition modules will be introduced, including one for currency trading.
  • Wrapping up the modules are the account and trading modules which show the status of the member’s wallet and allow them to send and receive coins with other members of the community.

Adel co-founder, Gabriel Dusil, is up for the complex challenges ahead, commenting, “Our decentralized and virtual incubator has its challenges, but we will manage that. As leaders and curators, it will be our responsibility to make sure that efficiency is maintained and momentum is sustained. When we see that there is a constructive effort to move ideas forward then we have the responsibility to make sure that process continues to flow. That is one of our main responsibilities as curators of the community”.

About the Authors

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

Jessica Allen

Jessica is a blockchain enthusiast and social media community expert with over 25 years of technology and 15 years of digital marketing experience.  As a mother of two, Jess is passionate about blockchain’s potential to innovate industries, unite communities and create a sustainable global economy.  She brings the ability to create conversations with anyone, at any level, about blockchain use cases and potential.  Jess is active on social media @TheJessAllen and volunteers her time with the Isha Foundation to help share the benefits of yoga and meditation as fundamental tools for human transformation.

References

[1] https://www.asme.org/engineering-topics/articles/bioengineering/top-5-medical-technology-innovations and http://medicalfuturist.com/top-10-medical-technologies-of-2016/

[1] https://www.dgx.io

[2] http://www.zerohedge.com/news/2017-04-26/ethereum-surges-all-time-high-sec-considers-ether-based-etf

[3] https://www.inc.com/john-rampton/top-10-hot-incubators-to-join-in-silicon-valley.html and https://www.forbes.com/sites/tomiogeron/2012/04/30/top-tech-incubators-as-ranked-by-forbes-y-combinator-tops-with-7-billion-in-value/#6b70519d51f3

[4] https://hbr.org/2011/11/inventing-the-collaborative-workspace

Adel ▲ White Paper ▲ Foundations of a Community Accelerator

Foundations of a Community Accelerator

▲ Roadmap Series

By:   Michal Vavrek, Founder & Board Member, Adel
&:     Gabriel Dusil, Co-founder & Board Member, Adel

Abstract

Adel is passionate about creating a robust platform for blockchain innovation. We have great plans for the ecosystem. It is our intention to move forward with building the Adel ecosystem and progressing with our roadmap[1]. For this reason, and in light of the ICO funding progress to date, we have prepared this revised and compelling roadmap for participants of the ICO.

Many contributors have commented that Adel is the most undervalued ICO at the moment. Our platform represents a unique opportunity for blockchain startups to be successful. Adel has strong leadership and expertise to make this happen, and it is our feeling that participants of the ICO also believe in our vision. The following plan, outlined in this paper, is a win-win from several angles:

  • ICO participants have the ability to receive a new 20% Post·ICO bonus on their contributions – in addition to the ICO Bonuses achieved through the ICO.
  • Contributors will receive higher market value for their ADL coins.
  • The Adel Reserve (explained below) will enable the ability to raise further capital for new projects.
  • Members of the community will benefit from the liquidity of the ADL coin.

Cornerstone

Adel strongly believes in the vision of a collaborative community that will collectively create the foundations for launching successful projects.

Adel initially established 900 BTCs as a minimum to begin phase two[2] of the ecosystem’s development. This phase entails: building the community, creating a legal structure for community members to participate in the community, and launching a selection of voted projects. From this minimum, 30% (270 BTC) was allocated to fund this process.

Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF) and Know your Customer (KYC) compliance processes were necessary steps to protect the community. With cryptocurrencies becoming mainstream, it is only a matter of time before all projects comply with effective legislation and regulatory oversight. Adel took on this challenge as the first ICO to be compliant to regulations. With the proposed amendment of the European Union 4th AMLD (Anti-money Laundering Directive) explicitly regulating providers of virtual currencies services, which now awaits EU Parliament 1st reading, it is more than likely that compliance will be enforced on all crypto exchanges and wallet providers. On the other hand, these measures have attracted serious business executives who are interested in building Adel.

By establishing our legal entity, Adel Ecosystem Ltd., and registering as a Designated Business with the Isle of Man Financial Services Authority, Adelphoi is in line with valid laws and its AML compliance procedures are duly documented. We have also stated our future intention to release the Adelshare (ADS) token so that members will have ownership and profit sharing rights. In addition, we have hired a team of finance, legal, and investment experts to design the second phase of our strategy. We are proud to say that the foundations laid in phase one complement the processes we will have road mapped in phase two.

Adel fully intends to bring the community together and have everyone who invested over 1 BTC to become part of the community. Adel is ready to take on any project blockchain idea and turn it into a successful mainstream product. However, before we do this, we need to hold a vote in order to decide the path Adel should take based on the following proposal.

ICO Compensation Plan

With 900 BTC as our publicized minimum, this entailed a reserve of 30% (i.e. 270 BTC) to implement Adel’s second phase. The remaining 70% BTC would be used to fund community projects. In light of the current ICO crowdfund status, we have prepared a revised plan to ensure that enough seed capital will exist to sustain Adel’s growth for the foreseeable future. For this reason, we propose following:

Adel will establish a fixed rate for the Adel coin (i.e. based on the minimum amount required in the ICO). This fixed rate will be the initial market value for the ADL coin on exchanges:

The following example is based on Adel collecting 380 BTC from ICO contributions. The calculations below will be readjusted based on the final amount collected at the end of the 1st ICO (the accompanying spreadsheet can be used to calculate the final figures). Therefore, Adel will distribute a proportional percentage of 28,333,333 ADL coins to ICO participants, calculated as follows:

  • Adel will offer a new favorable rate to ICO participants to reward their confidence in Adel’s vision. On this basis, an additional 20% will be allocated from the Adel Reserve (see below) for PostICO Participant Bonuses (this is in addition to bonuses received during the ICO):

  • An ADL reserve, retained by the Adel Ecosystem to raise funds for future project equity, will be calculated as follows:

  • The exact value of the ICO bonuses will not be known until the end of the ICO, and will be calculated from the contributions of all ICO participants.
  • The ADL Reserve will initially be traded on exchanges at the fixed rate calculated above = 00003176 ADL per BTC. The BTC obtained will remain in escrow until the investment entity and the Adelshare ADS token is established (roadmap: phase two).

Adel is currently negotiating with exchanges to list our ADL coin. Listing ADL on exchanges will allow for a new wave of investors to join the community after the ICO, and potentially raise the value of ADL substantially after the ICO.

Participant Example

The accompanying spreadsheet can be used to calculate the Adel Wallet for any ICO participant. In this example, we assume that a participant has their Dashboard showing the following details:

  • Your Share: 276% (Voting power will be recalculated based on active members)
  • Your Contributions: 0072 BTC
  • Adel Coins: 644,866 ADL (Wallet is recalculated below)
  • Voting Bonus (Account tab): 8763 (or 17.50% averaged ICO bonus = “effective BTCs”).
  • First of all, the participant’s Adel coins are recalculated based on the fixed rate above, 31,481.5 ADL per BTC, as follows:

  • Secondly, their voting bonus is converted to an ICO bonus as follows:

  • Thirdly, their PostICO Participant Bonuses is calculated as follows:

  • This participant’s effective ADL return on investment is their ICO bonus + PostICO Participant Bonuses: 17.50% + 20% = 37.53%.
  • From the figures above, their wallet and total bonuses are calculated as follows:

Revised Dashboard:

  • Your Contributions: 0072 BTC
  • ICO Contributions in ADL: 157,748 ADL
  • ADL ICO Bonus (17.50%): 27,587 ADL
  • Post·ICO Participant Bonus (20%): 31,527 ADL
  • Total Wallet: 216,748 ADL
  • The participant’s actual voting power will be calculated proportionally, based on the active members holding over 1 BTC in their wallet.

ICO Thresholds

  • Up to 270 BTC ▲ BTC funds up to 270 BTC will be released to Adel to fund phase two. BTCs raised from the sale of ADL on the exchanges from the Adel Reserve will be placed in escrow. Any BTC raised above 270 BTC will be stored in escrow.

  • Up to 643 BTC ▲ This is the upper limit of the “ICO Compensation Plan” outlined above. This threshold is needed because the remaining Adel Reserve will be used to pay the 20% Post·ICO Participant Bonuses, plus the theoretical maximum of 20% paid for the ICO Bonuses, calculated as follows:

  • Above 643 BTC up to 750 BTC ▲ In this bracket, ICO Bonuses will be calculated on a weighted distribution as outlined in White Paper #1. But ICO participants will still receive an additional 20% Post·ICO Participant Bonus for their participation:

  • Above 750 BTC ▲ All bonuses will be calculated on a weighted distribution as outlined in White Paper #1. Voting will be held by members contributing over 1 BTC during the ICO to decide on the ICO Compensation plan above.
  • Above 900 BTC ▲ All bonuses will be calculated on a weighted distribution as outlined in White Paper #1. No voting will be held because the ICO minimum will have been achieved.

ICO Voting

As per the use of funds, 270 BTC from the BTCs collected from the ICO will be released from escrow immediately after the ICO in order to build the community, portal modules, and create a legal structure for community members to participate in community investments through the ADS token (as per originally planned). BTC collected from the Adel Reserve and sold on the exchanges will be escrowed and released after the investment vehicle is established (phase two). In addition:

  • All community members who contributed over 1 BTC will vote on the release of the 270 BTCs to Adel based on the above plan, proportional to their voting power. The final decision on how to proceed will be made by those who have voted.
  • If the community votes “Yes”, then Adel will proceed with the Post ICO Strategy (above). Adel will also assess if these funds will allow at least one global project to be launched.
  • If the community votes “No”, then all BTC contributions will be refunded without bonuses. Adel will then retain all 28,333,333 ADL to be then sold to interested parties at an initial fixed rate of 1 ADL = 0.00003176 BTC.
  • ICO Terms & Conditions will be updated to reflect the changes in this white paper.
  • Participants who would like a refund of their ICO contributions before the community vote of this plan can send their request to ico@adelphoi.io. Refunds will be issued based on the email address of the participant and their BTC refund address (provided in the settings menu of their ICO module). Refunds will only be accepted before the voting window commences on these planned changes to the ICO Terms & Conditions.

In summary:

  • Participants can be refunded their contributions, if they wish, before voting commences on this plan.
  • Participants will be able to receive their contributions back in BTC if this plan receives a majority “No” vote from the community members who contributed over 1 BTC.
  • If a majority vote to this plan is “Yes”, then participants will be issued ADL coins based on their ICO contribution as per the example calculations in this paper, plus an additional 20% Post·ICO Participant Bonus, plus their ICO Bonuses.

Future Developments

The Adel Board has ambitious plans to launch the community portal and to launch global projects owned by the community through the ADS token. Areas which have not yet been publicized and are planned for a new white paper include:

  • Plans to open the first professionally managed cryptocurrency investment platform to effectively manage funds collected and traded on speculation. This will be part of a risk management strategy for community funds, and any licenses and legal entities to realize this goal will be pursued.
  • Adel also plans to open a cryptocurrency trading platform for community members.
  • Regarding projects, the focus will be to propose and communally enhance FinTech projects such as cryptocurrency exchange with financial instruments, Exchange-Traded Fund (ETF) investment funds, and a P2P ATM, all of which will be available for the community to vote on.
  • In addition, Adel continues to strategize on business plans that will maximize value for the Adel community.

About Adel

Adel is a technology incubator for blockchain innovation.

  • Adel is a global cryptocurrency community that is self-sustained and offers its own economic ecosystem with the Adelphoi token. Our community focuses on creating, developing and implementing use cases involving blockchain technology that covers a wide range of digital and physical industries. Projects are chosen by the community and successful ventures are either re-invested in for further growth or issued as rewards to Adel’s stakeholders.

About the Authors

Michal Vavrek

Michal is an entrepreneur with international experience specializing in global business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business and worked in various capacities in New York, Zurich and Prague. Michal is an active cryptocurrency entrepreneur with an extensive background in Forex algorithmic trading strategies and is always seeking new opportunities that maximize blockchain technologies.

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

References

[1] Reference: White paper #10, “Designing a Blockchain Incubator”.

[2] Reference: White paper # 1, “Building a Decentralized Ecosystem”

Adel ▲ White Paper ▲ Designing a Blockchain Incubator

Designing a Blockchain Incubator

▲ Roadmap Series

By: Gabriel Dusil, Co-founder & Board Member, Adel
Michal Vavrek, Founder & Board Member, Adel

Framework

Adel is an incubator for blockchain innovation. Members are active participants in the formation and creation of innovative projects. They participate by proposing, collaborating, and improving ideas, as well as helping progress them to the business planning stage. Members who participate in the formation of the idea and business plan can become future investors in projects, and can even participate as full-time employees once the project is launched. All participants can utilize their expertise to help fuel innovation and create viable projects. All members can have an integral role in the project’s formulation and success.

Roadmap

To create an effective and efficient startup incubator, Adel has established a phased deployment to build the ecosystem:

  • Feb 2016 ▲ Adel is founded
  • Jun 2016 ▲ Phase 1 ▲ Ecosystem Architecture
  • Dec 6th 2016 ▲ Website is launched
  • March 17th 2017 ▲ Adel Ecosystem Limited is registered in the Isle of Man
  • May 1st 2017 ▲ ICO, round 1 begins
  • Jun/Jul 2017 ▲ Adelphoi, ADL is listed on exchanges
  • Jun 2017 ▲ Community module development begins
  • Jun 2017 ▲ Phase 2 ▲ Legal & Investment structure development begins
  • Jun 2017 ▲ Idea to Project Supply Chain begins
  • Q3 2017 ▲ Ardor is released
  • Q4 2017 ▲ Adel becomes child-chain of Ardor
  • Q1 2018 ▲ Investment entity established
  • Q1 2018 ▲ Adelshare, ADS equity token is established
  • Q2 2018 ▲ First projects are funded & launched
  • Q2 2018 ▲ Phase 3 ▲ Project Execution

Phase 1 ▲ Ecosystem Architecture

Adel has established a Limited Liability Company (LLC) in the Isle of Man called Adel Ecosystem Ltd. The role of this company is; to formulate great ideas into business plans; facilitate and curate community activities; and protect the Adel brand and filter projects that are deemed to violate its ethical, moral or legal philosophy. In addition, Adel’s role is to ensure the Idea to Project Supply Chain is progressing efficiently and effectively. Furthermore:

  • Control resides with community members. The community participates in project creation and has the voting power to choose which projects are approved. All members can be active participants in the creation of ideas, building business plans, and in the execution of projects.
  • This legal entity will adhere to Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), and Know your Customer (KYC) requirements.
  • Adel will also implement security solutions that follow International Organization for Standardization, such as ISO 27001 for Information Security Management.

The Adelphoi (ADL) coin[1] will be a digital currency used primarily within the community. It will be used to purchase products, services, and solutions within the community, and to solicit the expertise of other members in community services to help fuel the success of projects. In addition:

  • ADL coins will also be used as remuneration where members provide their employment services in projects. In addition, ADL will be the currency used to reward project owners with dividends.
  • Adelphoi (ADL) is a digital currency primarily available for the Adel Community. ADL will be tradable on external exchanges giving the opportunity for new participants to join the community. External trading of ADL opens the opportunities to bring fresh ideas to the community through community growth.
  • A member’s voting power will be associated with the amount of ADL in their account. For example, a member with 100,000 ADL will have a hundred times more voting power than one with 1000 ADL in their wallet.
  • Part of the capital of the ADL coin from Adel Ecosystem Ltd. will be used to establish the investment vehicle in phase 2 and the creation of Adelshare (ADS).

Adel’s Community portal is exclusive to members only. Adel is primarily an incubator for blockchain innovation. Membership is granted to Adelphoi holders that meet the minimum requirement of over 1 BTC[2] (during the respective ICO round, or an equivalent of 2 BTC after the ICO, in equivalent ADL coins based on the equivalent rate at the time of the ICO round). In addition, Adel will:

  • Ensure a secure environment for its members.
  • Create an environment where the Adelphoi coin can be used for transactions.
  • Develop a Community Portal that will consist of six modules:
  1. Account Module
  2. Collaboration Module
  3. Voting Module
  4. Trading Module
  5. Market Module
  6. Project Module

Phase 2 ▲ Investment Structure

This phase will entail the creation of a new legal entity to establish an investment license. This entity will introduce a new token called the Adelshare (ADS), and will represent a member’s equity stake in projects. Once ADS tokens are established, then participants will buy these shares using their Adelphoi (ADL) coin. These will be tokenized on the blockchain as the Adelshare (ADS).

  • This legal entity will adhere to Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), and Know your Customer (KYC) requirements.
  • In this second phase, ADS will represent shares in projects, and can only be purchased with ADL coins.
  • Ownership of ADS allows its holder a respective share of dividends based on one unit per ADS.
  • Purchasing Adelshares (ADS) will only be possible for Adelphoi (ADL) coin holders.

Phase 3 ▲ Project Execution

The process flow for projects begins with submitting ideas to the Adel Board and the Project Review Committee for review and discussion. Ideas then proceed to the marketing stage to prepare a high-level overview document and/or presentation, its market positioning and landscape, value proposition, and unique selling points. The main purpose of this high-level document is to communicate this idea to the rest of the members.

Then the project enters the business planning stage with the guidance of the Project Review Committee and its community members. When a project plan is nearing completion then it is ready for a community vote. Members will vote on the project based on the combined weighted value of ADL in their wallet (and ADS, once this token is available). The voting process anticipates three main outcomes:

  • There will be members who vote no to a project’s business plan.
  • There will be members who vote yes to a project’s business plan[3].
  • There will be non-active voters who do not vote at all.

Approved projects will take one of four forms:

  • Community Projects ▲ Majority Approved Projects ▲ Voting results are tallied and if the community’s yes result is greater than 50%, then it is designated a Community Project. Here is an example of how community funding will work:
  1. Once the second phase investment vehicle is established, members will be invited to create a community-pooled fund by using their ADL to purchase ADS. Their wallet will reflect their equity stake in the pooled fund as a representation of their ownership and for future dividends for community projects.
  2. When the threshold of ADS is raised for the community fund, the seed capital will be released from the BTC repository (collected during the ICO) to begin funding the community project.
  3. In terms of ownership, 30% of community projects will be allocated to Adel Ltd. and 70% will reside with members who own community ADS tokens.
  • Group Projects ▲ Minority Approved Projects ▲ If less than 50% of the community says yes to a project, then the project can become a Group Project:
  1. Projects are funded by members who have purchased ADS in the project – forming a “group”. Group participants can choose how many ADL from their wallet they wish to use to purchase ADS tokens. Adelshares are the representation of a member’s equity stake in the project.
  2. Once the required ADS shares have been purchased by members then Adel’s BTC repository will be used as capital to seed-fund the project.
  3. Only active voters in a group project (those that actually voted “yes” or “no” in the voting window) can fund the project and become an Adel Investor to that project. This is to ensure a maximum number of members participate in the voting process: You need to vote to invest.
  4. In terms of ownership, 30% of community projects will be allocated to Adel Ltd. and 70% will reside with members who own a group project’s ADS tokens.
  • Innovator Group Projects ▲ Innovator Community Projects▲ These are projects where an idea is submitted by an Innovator (a member of the community) or from external party with an existing product or service.
  1. The Innovator (or external party) first indicates their equity percentage of the project. In other words, if an innovator requests x% of the project ownership then the remaining split will be 30% for Adel Ecosystem Ltd and 70%-x% for the Group or Community. It will be the decision of the community vote to decide if this is an acceptable business plan to approve the project. If it is not approved, then the business plan (and innovator split) may need to be revised accordingly.
  2. In terms of ownership: x% the project’s Adelshare is allocated to the Innovator of the project, 30% is for Adel Ecosystem Ltd., and 70-x% of the Adelshare is allocated to the active participants of the project (i.e. Adel Investors).

Ecosystem

Building our ecosystem will be a learning process. Not just for the community members, but also its leadership. Our goal is to find balance between a healthy ecosystem where innovation and collaboration can flourish, while maintaining a best effort approach to legal compliance and future legislation. There are many challenge that the ecosystem will face. Particularly a market where technology leads and legislation lags.

Adel is trail-blazing blockchain startups into mainstream economics. We seek to build a path that is safe, ethical, and principled. There are many obstacles along the way, but we have accepted them as an opportunity and a challenge. It is our mission to create a strong and stable incubator for blockchain innovation, and build projects that will change the future.

About Adel

Adel is a technology incubator for blockchain innovation.

  • Adel is a global cryptocurrency community that is self-sustained, and offers its own economic ecosystem with the Adelphoi token. Our community focuses on creating, developing and implementing use cases involving blockchain technology that covers a wide range of digital and physical industries. Projects are chosen by the community and successful ventures are either re-invested in for further growth or issued as rewards to Adel’s stakeholders.

About the Authors

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

Michal Vavrek

Michal is an entrepreneur with international experience specializing in global business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business and worked in various capacities in New York, Zurich and Prague. Michal is an active cryptocurrency entrepreneur with an extensive background in Forex algorithmic trading strategies and is always seeking new opportunities that maximize blockchain technologies.

References

[1] There will be no asset rights or dividends associated with the Adelphoi coin.

[2] This minimum incorporates ICO contribution bonuses earned throughout different stages of the ICO.

[3] If the amount of “yes” votes is deemed too small to be even a group project, then it could be shelved and revisited at a future date if ample enhancements can be made. Or the project plan could be combined with another idea to make it more viable. As more projects enter the community, then there are more possibilities for combining innovative ideas.

Further Reading

1. Building a Decentralized Ecosystem

http://wp.me/p3eaA5-ifv

In this white paper, we discuss the phased rollout of Adel’s ecosystem. The first phase includes the launch of Adel through an initial coin offering (ICO). Phases two and three will focus on building and managing the community.

2. An Incubator for Blockchain Technology

http://wp.me/p3eaA5-ifI

This paper provides an overview of Adel and its ecosystem. We outline how the community can interact with Adel’s staff, as well as activities surrounding project submission, approvals, and operations.

3. Responsibilities in a Crypto-economy

http://wp.me/p3eaA5-ifT

Adel is a community where every member is connected through token participation and voting. This paper outlines the roles and responsibilities of community participants, including its members, project managers and Adel’s leadership.

4. Creating Value with Cryptocurrency

http://wp.me/p3eaA5-ig9

This white paper outlines Adel’s advantages from three vantage points: its underlying blockchain technology, the Nxt and Ardor platforms from which Adel is built, and the additional business processes Adel has introduced to provide effective, community-based funding.

5. Differentiation in the FinTech Revolution

http://wp.me/p3eaA5-igm

In this paper, we discuss existing cryptocurrency technologies that are available today by providing an overview of the blockchain marketplace and Adel’s position within it.

6. Maintaining Integrity

http://wp.me/p3eaA5-igq

This white paper outlines the principles of a community-based ecosystem and how this can be sustainable and profitable using cryptocurrencies as its foundation.

7. Inspiring Innovation

http://wp.me/p3eaA5-ih8

Spontaneity and creativity is impeded by a heavily formalized process which has been established by sizeable institutions that have evolved over many decades of operation. We outline how Adel will change the investment landscape and inspire technological innovation.

8. Protecting the Community

http://wp.me/p3eaA5-ihc

In this paper, we outline established procedures to mitigate risk to Adel’s ecosystem while protecting its brand, infrastructure, and the integrity of blockchain solutions.

9. Managing the Ecosystem

http://wp.me/p3eaA5-ihg

This document frames the procedures established by Adel for community projects. We discuss the guidelines for proposal submissions, reviews and approvals, as well as management and operational oversight. We also outline fund allocation to approved projects and reward distribution to stakeholders.

10. Designing a Blockchain Incubator

http://wp.me/p3eaA5-ihB

In our continued efforts to communication Adel’s vision, this white paper expands our three-phase roadmap explained in White Paper #1, “Building a Decentralized Ecosystem”. We have now included our timescales to list ADL on exchanges, the introduction of our Adelshare (ADS), move to Ardor, and project execution (phase 3).

Adel ▲ Opinion ▲ The Next Evolution in Funding Innovation

The Next Evolution
in Funding Innovation

▲ Fintech Series

By:          Dalibor Cerny, Finance Lawyer, Crypto Enthusiast
Gabriel Dusil, Co-founder & Board Member, Adel

Abstract

This article is the second part of a Financial Technology series[1], discussing funding and organizational structures of new digital companies and blockchain[2] ventures. This is the second article following, “The Right Path to Funding Decentralized Organizations”, where we explored the dynamics of financing startups and new entrepreneurships.

An Ecosystem of Participation

Initial coin offerings (ICOs)[3] are a very popular way for ventures to raise funds for their endeavours. Digital companies are developing novel ways of governance as existing models become dated, and needs to be modernized. A new enterprise called Adel[4] is a refreshing example of how blockchain is being combined with traditional venture capital seed funding while exposing the challenges and controversial topics in the fintech evolution.

In this new decentralized community model, Adel created an environment whereby experts, investors, and future employees can co-exist based on their participation in its ecosystem. This is instigated by a less regulated and very user friendly ICO. Several ICOs have used existing cryptocurrency protocols to create cryptocurrency tokens. The most notable are blockchains such as Nxt,[5] Counterparty, Bitshares, or Mastercoin (now Omnicoin). One advantage of an ICO, compared to traditional Initial public offerings (IPO), is that it is done outside of heavy regulation and oversight.[6] Compared to modern funding models such as crowdfunding, ICOs are executed without an intermediary. A growing number of digital technology startups are raising cash this way, by creating and selling their own cryptocurrency tokens and bypassing the need for banks or venture capital firms.[7]

ICOs represent a new way of funding because people can invest their money very flexibly from all corners of the world. Participants of the ICO are investing in the future of the company and in the anticipated success of the solutions they are developing. Contributors to the ICO help to raise awareness in their respective communities. The investors are also motivated by the speculative growth of the cryptocurrency token market price as early buyers. They also provide early liquidity for the cryptocurrency tokens when trading starts. Once funding is completed, the cryptocurrency tokens are listed on cryptocurrency exchanges such as Poloniex[8] to trade against other cryptocurrencies. This allows the participants to immediately trade their tokens based on the speculative movement of the token’s market value. In some cases, this can result in lucrative short-term gains. The token’s price is a reflection of the ICO’s overall vision, market sentiment, project news, and momentum regarding the ideas of project flow, innovation, and future revenue potential. Some well-known cryptocurrency tokens that were developed through an ICO are NXT, Mastercoin, Bitshares, Ethereum, Maidsafecoin, NEM, Synereo, Factom, DigixDAO, Lisk, Waves and others.[9] What can be a potential disadvantage of ICOs is that most of them are not regulated or registered with any government organization and there is usually no investor protection (other than those built into the given platform itself). Also, cryptocurrency tokens have no legal meaning and do not represent an asset in many government jurisdictions. This is why ICOs can be currently deployed, since digital currencies are not considered securities.[10]

Adel understands that their funding model needs to have a regulatory safety net, similar to traditional financing. They are the first decentralized organization launching an ICO that will be compliant with Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF) rules[11] and related Know Your Customer (KYC).[12] This is a logical move because cryptocurrency exchanges using bitcoin are becoming subject to AML/CTF/KYC rules and some have voluntarily implemented similar procedures. Adel’s compliance to KYC will likely omit a segment of the market of bitcoin liberalists who will not give up their identity. On the other hand, that may not be such an issue because the threat of not having AML/CTF/KYC today is having the fund shut down by regulators due to non-compliance.

A New Type of Company

Adel’s organizational structure consists of two major parts. First of all, is membership. Stakeholders of ADL are invited to join the Adel community after the ICO, following a minimum investment of 1 bitcoin (BTC). Membership allows the participant to exercise their right to collaborate and vote on projects based on the amount of Adelphoi coins they hold in their account. Second is an established service company called Adel Ecosystem Ltd.,[13] which oversees the rules of the community and AML/CTF rules to meet regulatory requirements. Adel Ecosystem’s advisory and expertise umbrella offers services such as research and development, a project review committee, marketing services, a legal and accounting team, a business development team, and a board of directors.[14] Adel will retain a 15 % stake from the ICO for these services and will also own 30 % of the projects launched in the ecosystem.

From an organizational perspective, Adel combines the best of both worlds:  regulatory, legal and ethical compliance, together with an innovative governance structure. Unlike The DAO or similar models (as explained in our previous article of this series), Adel is not governed by smart contracts.[15] Day-to-day decision making maintains a “human element”, rather than computer code. Given the fact that smart contracts are still a concept yet to be proven resilient in the real world, this is definitely a safer solution for the time being.[16]

The role of stakeholders in the Adel ecosystem will consist of collaborating on idea development, participation in business planning, and voting on new projects that emerge from the ecosystem. Through democratic voting, stakeholders will be able to influence which projects will be deployed. Because Adel will be community driven, stakeholders will have the opportunity to raise the necessary capital for projects. Once deployed, the stakeholder can then follow the project’s progress, or even get the opportunity to participate actively as an expert.

Compare Adel’s decentralized and self-sustaining community to the role of employees in a traditional corporation. The negative aspects of corporate life are significantly attenuated. Would discrimination exist on the same scale it does today if organizations were decentralized? Would people be treated unfairly? Would you spend time working on something that didn’t interest you, or continue to sit in an office just to prove you were at work? Would the notion of climbing the corporate ladder be as important? Would projects continue to be disrupted or derailed due to personal agendas and insecurities?

Adel’s project decisions reside at the membership level. Every project is submitted to a community vote. This process revolves around a social networking engine where good ideas can become a community project if a majority rules in its favour. But even if this is not the case, then the project can survive with a minority vote. In such a case, it becomes a group project. This process is democratic, transparent, and flexible enough to function properly. A necessary prerequisite is complete access to all information relevant to projects. This level of transparency is not provided to shareholders in traditional corporations. Disclosure of information in these companies is purposefully challenging. For example, sensitive information probably requires a formal written request, or is limited to shareholders on a need-to-know basis.

Shareholders of traditional securities are granted shares in exchange for money paid to the corporation for holding that equity. They may meet annually at the corporation’s annual meeting and receive quarterly statements on their performance. In Adel, project performance is reflected in an online “Project Dashboard” which shows the performance of investments on a weekly or bi-weekly basis. Members of the Adel community not only get a stake in projects through a future token called the Adelshare (ADS), but will also participate in the creation and execution of projects. So Adel members have an emotionally vested interest in its success because they’ve participated in the project’s growth from infancy to adulthood.

Traditional companies are mostly based on a structure where the board of directors oversees the officers of the company and ensures operations follow corporate mandates and legal procedures. Directors have, among other duties, a fiduciary duty to act in the corporation’s best interest, as opposed to their own. These duties are in place to protect the shareholders’ investments. Adel’s board of directors has documented a similar function.

Distributions of profits (dividends) in traditional companies are usually made through proportional amounts per shareholder. The proposal to distribute profits is made by the corporation’s board of directors. The board can decide to either distribute the profits to shareholders or to keep profits in the corporation as working capital or to fund a new endeavour. Adel will distribute its profits in a similar manner. This is contingent on establishing Adel’s second entity after its ICO called Adel Ltd., which will have a fund license to enable its members to buy Adelshares (ADS) in projects. Dividends to members will then be distributed in Adelphoi (ADL) currency (Figure 1).


Figure 1: Adel’s Currency vs. Ownership Funding

The protection of intellectual property within the Adel ecosystem is not the same as in a traditional company, mainly due to its transparency. Social media and the internet has largely done away with the notion of secrecy anyway, as evidenced by WikiLeaks, government monitoring, and Facebook’s and Google’s ongoing correlation of user behaviour. Adel realizes the difficulty of balancing transparency with confidentiality, and has stated their interest in withholding secret information that may be critical to a project’s success. This is mainly positioned to protect both stakeholders in the community and the rights of the projects’ authors (referred to as Innovators, in the Adel ecosystem).

Projects in Adel’s community will assume different forms, based on whether the Innovator of ideas wants to keep a portion of the equity, or to release it as a community project. This approach is meant to ensure that innovative projects continue to be launched, while minimizing the risk of copycats.

The Future

Whatever becomes of Adel’s final structure, it is important to emphasize that the world of cryptocurrencies and ICOs is still a Wild West when viewed from the perspective of traditional financial vehicles. It is strongly advised before taking part in any investment of such nature to do your due diligence on a given ICO and on the people running it.[17] There are risks involved and the possibilities of being scammed are well documented.[18]

There are also grey areas where regulators still need to catch up. Blockchain startups need to have a proper legal structure for an investor to fall back on in the case of trouble. However, the same reasons why this space is so risky also make it so attractive. Innovative projects are being created using untested structures and technologies, which may either evolve into something marvellous or won’t make it out of the starting gate. The choice is up to the investor whether to be a part of the blockchain movement, but informed decisions should always be made. Participants are given an opportunity to enter a playground of high innovation, clever minds, and the creation of cutting-edge projects that may positively change the world. To say you were a part of it from the beginning has its own prestige.

About the Authors

Dalibor Cerny

Dalibor is an (alternative) finance lawyer, crypto enthusiast and Vipassana meditation practitioner. He has roots in Prague, Czech Republic, where he obtained his PhD. in Private International Law and International Trade Law. He also studied Master of Law (LL.M) in San Francisco, California and International exchange program at Bucerius Law School in Hamburg, Germany. In his professional life, Dalibor is focusing on banking, finance (including alternative finance, crowdfunding, cryptocurrencies and fintech), capital markets, insurance, reinsurance and international trade law. He worked as an attorney and in-house legal counsel for global financial institutions such as AXA and European Investment Bank.

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

References

[1] This article targets a broad audience without getting too deep into technical, economical or legal jargon. The reason for this approach is to explain the latest activities in fintech in the most accessible way possible, without getting lost in all the technicalities. The authors assume that the general public struggles to keep pace with technical, legal and social media developments and that it is challenging for individuals to orient themselves in the jungle of media overload, fake news, scams and annoying trolls.

[2] A very basic visual introduction to the concepts behind a blockchain: https://www.youtube.com/watch?v=_160oMzblY8&t=143s

[3] http://www.investopedia.com/terms/i/initial-coin-offering-ico.asp

[4] https://www.adelphoi.io/

[5] Adel’s cryptocurrency tokens will be created on top of the NXT protocol.

[6] More detailed example here: https://www.thebalance.com/cryptocurrencies-are-changing-capital-raising-process-for-new-companies-4115445

[7] What Initial Coin Offerings are and why VC firms care: https://hbr.org/2017/03/what-initial-coin-offerings-are-and-why-vc-firms-care

[8] https://poloniex.com/

[9] You can find all existing cryptocurrency tokens and their market valuation here: https://coinmarketcap.com/

[10] However, this view may change fairly quickly: https://www.americanbanker.com/news/are-crypto-tokens-securities-by-another-name

[11] http://www.investopedia.com/terms/a/aml.asp

[12] https://bitcointalk.org/index.php?topic=454795.0

[13] Adel establishes LLC in the Isle of Man: http://www.fintech.finance/01-news/adel-establishes-llc-in-the-isle-of-man/

[14] For more detail: https://www.adelphoi.io/content/pdf/wp_3.pdf

[15] A beginner’s guide to smart contracts: https://blockgeeks.com/guides/smart-contracts/

[16] Smart contracts are not smart by nature: https://www.finextra.com/blogposting/12569/smart-contracts-are-not-smart-by-nature

[17] These resources can help with your due diligence: http://startupmanagement.org/2017/03/13/the-ultimate-list-of-ico-resources-18-websites-that-track-initial-cryptocurrency-offerings/

[18] How not to be scammed by an initial coin offering: https://blockgeeks.com/how-not-to-be-scammed-by-a-initial-coin-offering/

Further Reading

▲ Opinion ▲ The Next Evolution in Funding Innovation

▲ Opinion ▲ The Right Path to Funding Decentralized Organizations

Adel ▲ Opinion ▲ The Right Path to Funding Decentralized Organizations

The Right Path to Funding Decentralized Organizations

▲ Fintech Series

By:  Dalibor Cerny, Finance Lawyer, Crypto Enthusiast Gabriel Dusil, Co-founder & Board Member, Adel

Abstract

Financial Technology (Fintech) is one of the fastest developing industries of our time. This article is the first in a series of two articles that explore the dynamics of financing startups and new entrepreneurships, especially in the fintech sector.[1] New company structures are emerging with very innovative features. Recent examples, along with their innovative investment structures, are reflected in startup funding campaigns that use a technology called blockchain.[2] A new enterprise called Adel[3] is a refreshing example of how blockchain is being combined with traditional venture capital seed funding while exposing the challenges and controversial topics apparent in the fintech evolution. In part two of this series, “The Next Evolution in Funding Innovation” we will discuss funding and organizational structures of new digital companies and blockchain ventures.

The DAO

Before getting to fintech challenges, let’s begin with a bit of history. Nearly a year ago, the first major decentralized autonomous organization (DAO),[4] called simply The DAO[5], was launched on the Ethereum[6] blockchain platform. Excitement was so high it created the biggest crowdfunding[7] campaign of all time, raising over USD 150 million (Figure 1).[8] The idea behind The DAO and recent successors[9] was to create a decentralized organization using a tool called smart contracts.[10] These allow for automatic governance and day-to-day decision making using computer code without having traditional human intervention and classical corporate structures in place.

Figure 1: ICOs, Crowd Funds Raised, since 2012[11]

The DAO wanted to offer complete transparency, total stakeholder control, unprecedented flexibility, and autonomous governance. Power would reside in the hands of its stakeholders. These stakeholders would also establish the general direction and mission of the organization and would be democratically voted to reach a consensus on important decisions. In this lies the element of decentralization – there is no central body or authority to exercise the decision making throughout the life of the organization. In theory, this should operate more efficiently than a normal company due to the lack of corporate hierarchy, politics, and bureaucracy, creating obstacles and delays. From this seemingly straightforward setup comes the benefit of lower operational costs and little room for corruption. However, The DAO is already a chapter in the history of blockchain. This ambitious project met its demise almost immediately after its initial coin offering (ICO)[12] when over USD 50 million disappeared from The DAO’s funds. The eventual fallout caused, among other things, a split of the second most popular cryptocurrency token[13] called Ether.[14] This was caused by a successful hack of The DAO exploiting a weakness in their code.[15] Although The DAO ended up in scandal and disappointment, the fintech community definitely didn’t give up on decentralized organizations. Quite the contrary, new projects soon emerged. A number of blockchain incubators came onto the scene throughout 2016 (Figure 1).[16] One notable project, Adel, was announced in December 2016 on this very idea of a decentralized ecosystem with a global reach, centred around an active social networking of its members. In fact, Adel was in development for five months when The DAO’s funding began. Their project will commence funding on May 1st 2017, using the same vehicle as The DAO called an initial coin offering (ICO). The ICO’s purpose is to purchase their Adelphoi (ADL) coin (a cryptocurrency token), which will be used to make transactions within the community. In the future, when their fund vehicle is established, ADL will be used to purchase equity in blockchain projects.

Taking the Right Path

Adel is a platform whose main goal is to develop solutions for implementing blockchain – the heavily discussed technology behind bitcoin. It must be emphasized that there are many use cases exploring the possibility of blockchain, but most of them have not made it past the proof of concept (PoC) stage. Nevertheless, there are indications that the next five years will lay the groundwork for the implementation of this technology across various vertical industries. Blockchain projects will eventually move from PoC to production and cutting-edge solutions will prove their usefulness. Still, the idea of a blockchain incubator is not really the most interesting aspect of Adel. What is most intriguing about Adel is that it shows the potential of the next evolution in how companies may be structured. Adel is potentially a window into the future of how organizations will evolve from the perspective of funding, corporate governance, collaboration, and the meaning behind their existence. When The DAO imploded, many questions arose about the legality of their funding because the process happened in a completely unregulated arena.[17] While startups and governments around the globe are trying to figure out the basic rules of crowdfunding,[18] the crypto community is already funding its new ventures through cryptocurrency tokens. It is clear that regulators have not kept pace with developments in fintech and digital currencies. What is prudent with Adel is that they do not try to appear overly “disruptive”.[19] In fintech, this word has symbolized the destruction of established players with up-and-comers. However, these new players rarely end up replacing existing solutions. What typically happens is a fusion of the old with the new.[20] So disruption is sensitively positioned by Adel as an opportunity, rather than a threat. As in nature itself, fintech must also evolve. It is important to continually innovate and implement new technologies, but what’s more important is to ensure that solutions can be integrated into the fabric of an institution’s political, economic, social and technological infrastructure. The core message is not to disrupt, but to improve efficiency and lower costs. In other words, even if disruption is inevitable, it is not the main goal. Technology seems to evolve with a natural cadence. But from an enterprise perspective, systems are not positioned for aggressive leaps forward. We cannot expect companies to abandon their traditional ways and jump into self-governing DAO-like organizations where funds are unregulated.[21] There is also the human aspect to changes in technology, whereby many managers see new technologies like blockchain as a threat to their corporate existence. They will fight to keep any disruptive technology out of their company for fear of losing their title or position. Finally, there is the cultural aspect. Implementing new technology requires a review of a company’s culture to determine the propensity to change by the staff, and how attempting to implement a new solution may affect the outcome. We agree that old systems may be slow, inflexible, or out of date. But their biggest advantage is reliability. The 150-year-old electrical grid at 220V 50Hz/120V 60Hz might be completely redesigned if it were rethought with today’s requirements. Same goes for the Internet – TCP/IP is well known to be an inefficient protocol, but it works! Incumbent systems have gone through long periods of stress testing and tweaking. The upheaval of legal regulation in banking and traditional financing is a testament to the industry’s wiliness to evolve. It can be argued that we already live in over-regulation and tight governmental control. But that does not change the fact that legacy infrastructures have been tried and tested for decades and are backed by the most powerful entities on the planet: state governments. Human nature is about improving and progressing. We should not forget that just a few years ago, Airbnb or Kickstarter didn’t exist. Now they are household words. The same vantage point can be given to blockchain, except we are many years ahead of this technology from being woven into our daily lives. Adel´s approach lies in the fact that they utilize the best from both worlds – the old and the new.

About the Authors

Dalibor Cerny

Dalibor is an (alternative) finance lawyer, crypto enthusiast and Vipassana meditation practitioner. He has roots in Prague, Czech Republic, where he obtained his PhD. in Private International Law and International Trade Law. He also studied Master of Law (LL.M) in San Francisco, California and International exchange program at Bucerius Law School in Hamburg, Germany. In his professional life, Dalibor is focusing on banking, finance (including alternative finance, crowdfunding, cryptocurrencies and fintech), capital markets, insurance, reinsurance and international trade law. He worked as an attorney and in-house legal counsel for global financial institutions such as AXA and European Investment Bank.

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

References

[1] This article targets a broad audience without getting too deep into technical, economical or legal jargon. The reason for this approach is to explain the latest activities in fintech in the most accessible way possible, without getting lost in all the technicalities. The authors assume that the general public struggles to keep pace with technical, legal and social media developments and that it is challenging for individuals to orient themselves in the jungle of media overload, fake news, scams and annoying trolls. [2] A very basic visual introduction to the concepts behind a blockchain: https://www.youtube.com/watch?v=_160oMzblY8&t=143s [3] https://www.adelphoi.io/ [4] https://en.wikipedia.org/wiki/Decentralized_autonomous_organization [5] http://www.investopedia.com/articles/insights/051616/why-dao-ethereum-revolutionary.asp [6] https://www.ethereum.org/ [7] What is crowdfunding? https://www.fundable.com/learn/resources/guides/crowdfunding-guide/what-is-crowdfunding [8] https://en.wikipedia.org/wiki/List_of_highest_funded_crowdfunding_projects [9] For example SuperDAO: http://www.superdao.io/#Superdao-nav [10] A beginner’s guide to smart contracts: https://blockgeeks.com/guides/smart-contracts/ [11] https://en.wikipedia.org/wiki/List_of_highest_funded_crowdfunding_projects [12] http://www.investopedia.com/terms/i/initial-coin-offering-ico.asp [13] A gentle introduction to digital tokens: https://bitsonblocks.net/2015/09/28/a-gentle-introduction-to-digital-tokens/ [14] http://www.coindesk.com/ethereum-classic-explained-blockchain/ [15] http://www.coindesk.com/understanding-dao-hack-journalists/ [16] https://letstalkpayments.com/11-blockchain-focused-startup-incubators-as-unconventional-as-the-technology-2/ [17] http://www.livebitcoinnews.com/cryptocurrency-icos-remain-gray-area-legality-concerned/ [18] For example EC on identifying market and regulatory obstacles to crowdfunding in the EU: https://ec.europa.eu/info/tender/identifying-market-and-regulatory-obstacles-cross-border-development-crowdfunding-eu_en or approval of crowdfunding legislation in Australia: https://www.crowdfundinsider.com/2017/03/97541-fintech-australia-welcomes-approval-crowdfunding-legislation/ [19] What disruption really means: https://www.tonyrobbins.com/career-business/what-disruption-really-means/ [20] Example of such: http://spectrum.ieee.org/tech-talk/computing/networks/enterprise-ethereum-alliance-launches [21] More on this thought: https://techcrunch.com/2016/05/16/the-tao-of-the-dao-or-how-the-autonomous-corporation-is-already-here/

Further Reading

▲ Opinion ▲ The Next Evolution in Funding Innovation

▲ Opinion ▲ The Right Path to Funding Decentralized Organizations

Adel ▲ White Paper ▲ Managing the Ecosystem

▲ Management Series

By:   Gabriel Dusil, Co-founder & Board Member, Adel
By:   Michal Vavrek, Founder & Board Member, Adel

Abstract

This document frames the procedures established by Adel for community projects. We discuss the guidelines for proposal submissions, reviews and approvals, as well as management and operational oversight. We also outline fund allocation to approved projects and reward distribution to stakeholders.

Proposals

Project proposals are created and prepared by either the Adel R&D team or submissions from community members, known as Innovators. These will mostly concentrate on blockchain projects that favor global reach and potential. When the proposal originates from the R&D team, the recipients of the rewards will always involve the entire community. Submissions will need to follow the following business planning guidelines to ensure an efficient and streamlined review of the idea:

  • Executive Summary ▲ Presentation that summarizes the project for the Project Review Committee (e.g. PowerPoint, Prezi, or other canvas).
  • Invention Overview ▲ Product, solution, or service.
  • Marketing Strategy ▲ Strategic, tactical and operational goals, market landscape overview, competitive analysis, and unique selling proposition (USP).
  • Sales Strategy ▲ Strategic, tactical and operational goals, monetization possibilities, channels to market, regional focus, and vertical or horizontal market focus.
  • Capital Costs ▲ Research and development, production, and launch costs for the first three years of operation.
  • Operational Costs ▲ Staffing, expertise, operations and management, and a draft organization chart.

In order to stimulate new proposals, the Project Review Committee will manage an idea incubator where all members of the community can enhance their business plans. The R&D team will also be a source of ideas as a service to the community.

If a project idea comes from an individual member of the community, and if the inventor would like their idea to be public, then the project will be treated as if it had been submitted by the Adel R&D team (Figure 1). However, if they wish to maintain ownership of their idea, then it will become an Innovator Project. All the documentation stated above is still required for Innovator Project submissions. Once a project is successful and reaches its targets, or if the project is sold, then the distribution of funds will be divided among shareholders according to the proportion of their Adelshare (ADS) purchases. These rewards may be distributed back to stakeholders in ADL.


Figure 1: Idea Submission to Project Launch

The Project Review Committee will monitor a project’s progress and success metrics. This will include the management of individual project managers who will report to the committee on a weekly or bi-weekly basis. The Project Review Committee reports to the Adel Board on project progress, and community participation will occur on a monthly or bi-monthly basis. The community will see a summary of these activities in the Project Module.

Ethical, moral, and legal standards will be monitored throughout the operation of projects. Violation of the Adel Code of Conduct will be addressed by a committee consisting of staff, Board members and legal experts. If a project is ongoing and successful, then rewards are distributed to holders of Adelshare (ADS) in a particular project.

Approvals

Final approval for every project is based on a community voting result. Members decide if the project will be funded from community funds or passed on to individual funding and become a Group Project. The Board serves as a curator of the community in order to remove unacceptable activities due to legal concerns, impracticality, or if the project violates Adel’s philosophy.

Part of the approval process is the Project Review Committee’s review of all relevant documentation necessary for approval. Cost analysis will be reviewed to determine whether there are sufficient funds necessary for the initial project’s capital, as well as ongoing costs for the first three years of operation. Business plans that are voted on and approved by the community will include acceptance of the business plan, including all costs involved. Funds released for each project will be approved by the Adel Board.

  • Human Resources ▲ With regards to the appointments of responsibility, the security of community funds prevails. Therefore, the members of each project will be identified according to Adel’s Anti-Money Laundering (AML) procedures.
  • Mentoring ▲ Mentoring for each project and its management will be provided by the Board and the project management team in order to maximize the return on capital utilized.
  • Participation ▲ Members will participate in the entire Idea to Project Supply Chain. They can present ideas, help improve on the market viability of the idea, help create the business plan, and solicit their expertise in the employment of a project.
  • Motivation ▲ Motivation for members of the project team will be in the form of rewards and salaries. Some members will also be stakeholders in the project, so this is added motivation to ensure their contribution is successful in the form of project rewards paid to the member in Adelphoi (ADL).
  • Employment ▲ The project team will be selected from knowledgeable experts within the community who have demonstrated expertise in the project’s respective area(s). If expertise cannot be sourced within the community, then the role will be filled by an external candidate.
  • Project Management ▲ Management of the overall project portfolio will be monitored by a Project Manager who will report to the Project Review Committee.

About the Authors

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

Michal Vavrek

Michal is an entrepreneur with international experience specializing in global business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business and worked in various capacities in New York, Zurich and Prague. Michal is an active cryptocurrency entrepreneur with an extensive background in Forex algorithmic trading strategies and is always seeking new opportunities that maximize blockchain technologies.

Further Reading

1. Building a Decentralized Ecosystem

http://wp.me/p3eaA5-ifv

In this white paper, we discuss the phased rollout of Adel’s ecosystem. The first phase includes the launch of Adel through an initial coin offering (ICO). Phases two and three will focus on building and managing the community.

2. An Incubator for Blockchain Technology

http://wp.me/p3eaA5-ifI

This paper provides an overview of Adel and its ecosystem. We outline how the community can interact with Adel’s staff, as well as activities surrounding project submission, approvals, and operations.

3. Responsibilities in a Crypto-economy

http://wp.me/p3eaA5-ifT

Adel is a community where every member is connected through token participation and voting. This paper outlines the roles and responsibilities of community participants, including its members, project managers and Adel’s leadership.

4. Creating Value with Cryptocurrency

http://wp.me/p3eaA5-ig9

This white paper outlines Adel’s advantages from three vantage points: its underlying blockchain technology, the Nxt and Ardor platforms from which Adel is built, and the additional business processes Adel has introduced to provide effective, community-based funding.

5. Differentiation in the FinTech Revolution

http://wp.me/p3eaA5-igm

In this paper, we discuss existing cryptocurrency technologies that are available today by providing an overview of the blockchain marketplace and Adel’s position within it.

6. Maintaining Integrity

http://wp.me/p3eaA5-igq

This white paper outlines the principles of a community-based ecosystem and how this can be sustainable and profitable using cryptocurrencies as its foundation.

7. Inspiring Innovation

http://wp.me/p3eaA5-ih8

Spontaneity and creativity is impeded by a heavily formalized process which has been established by sizeable institutions that have evolved over many decades of operation. We outline how Adel will change the investment landscape and inspire technological innovation.

8. Protecting the Community

http://wp.me/p3eaA5-ihc

In this paper, we outline established procedures to mitigate risk to Adel’s ecosystem while protecting its brand, infrastructure, and the integrity of blockchain solutions.

9. Managing the Ecosystem

http://wp.me/p3eaA5-ihg

This document frames the procedures established by Adel for community projects. We discuss the guidelines for proposal submissions, reviews and approvals, as well as management and operational oversight. We also outline fund allocation to approved projects and reward distribution to stakeholders.

10. Designing a Blockchain Incubator

http://wp.me/p3eaA5-ihB

In our continued efforts to communication Adel’s vision, this white paper expands our three-phase roadmap explained in White Paper #1, “Building a Decentralized Ecosystem”. We have now included our timescales to list ADL on exchanges, the introduction of our Adelshare (ADS), move to Ardor, and project execution (phase 3).

Adel ▲ White Paper ▲ Protecting the Community

▲ Management Series

By:   Travin Keith, Marketing and Blockchain Advisor, Adel
Gabriel Dusil, Co-founder & Board Member, Adel

Abstract

In this paper, we outline established procedures to mitigate risk to Adel’s ecosystem while protecting its brand, infrastructure, and the integrity of blockchain solutions.

Risks

This section will go over some of the risks that Adel faces from a community perspective and how it plans to face them.

  • Collusion ▲ While it is impossible to fully remove the chance of unethical collusion, Adel has taken measures to mitigate this risk. For example, any suspected collusion or other nefarious behavior will result in the community member being blacklisted. Stakeholders that collude to damage Adel in any way only serve to damage themselves as they also have a vested interest in the community’s success. The paradox is this: in order to have a significant impact on the community voting system, this individual would require a sizable amount of Adelphoi to influence the voting outcome, thus increasing their exposure and risk.
  • Fraud ▲ A certain level of trust is necessary within the community in order to approve, launch, and operate projects. This is especially true since every action is not on the blockchain itself. As stated under Fiduciary Integrity in the next section, steps will be taken with project leaders and staff to ensure that all projects are carried out efficiently, legally, and profitably. However, the risk of members behaving fraudulently still exists. For this reason, Community Code arbitration will be established with the board’s assistance.
  • Manipulation ▲ Voting fraud and manipulation will be eliminated by only revealing voting results after the voting window has closed. In addition, only stakeholders with a minimum amount of Adelphoi will be invited to the community to become community members. Furthermore, community members will vote based on the proportional weight of Adelphoi they hold. This will prevent fraudsters from creating multiple accounts in order to sway the community vote.
  • Abuse ▲ Moderators will maintain order to prevent spammers from taking over a discussion for specific projects or in the Adel community’s general discussion area. These moderators will be selected in terms of their incentive to keep their respective forum discussions free from spammers, as well as their ability to do so. If an abuse of power has been demonstrated by the moderator, then the issue will be reviewed in order to determine an appropriate course of action. Community members may be blacklisted if forum rules are not met or moderator warnings are not obeyed.
  • Confirmation Bias ▲ A confirmation bias is where people remember something in a way that confirms their own pre-existing belief. However, that belief may still be wrong. This can become an issue throughout the various decision processes in Adel where a community argument ensues because of a past decision or event. To avoid this issue, there will be a log of important events in the ecosystem, as well as a logged chat room. Furthermore, all voting decisions will be logged on the blockchain.
  • Money Laundering ▲ This refers to income with no regulation to maximize profits for as little cash outflow as possible. Money is accumulated through illegal means and flows into socio-economically productive industries. Adel’s philosophy is to follow regulatory compliance around Anti-Money Laundering (AML), and to ensure that community participants adhere to these procedures. It is of the utmost importance that the team, the community, and the Adel brand are protected.
  • Terrorism Financing ▲ Adel’s compliance to AML will mitigate risk to Counter-Terrorism Financing (CTF) by requiring all members of the community to be identified through AML guidelines. The exchange of financial information under CTF rules ensures the protection of the Adel ecosystem and assists law enforcement in their fight against terrorism.

Security

In this section, we will outline procedures created by Adel to mitigate harm to the integrity of its ecosystem, to Adel as a brand, and to the infrastructure created, all in order to realize Adel’s project goals.

  • Code of Conduct ▲ The Project Review Committee will ensure that projects comply with Adel’s Code of Conduct, which includes its ethical and integrity framework, together with the Adel Board. In addition, the distribution of salaries or capital gains cannot be fully automated and will require manual actions. Where people are involved, some trust will always be necessary. Trust is inherent in the operational oversight of each project. A level of trust is established with project leaders, experts, and operational staff, in order to successfully deliver on the project’s goals. Community members will not be anonymous in an effort to mitigate risk. They will be required to reveal their identity when they enter the Adel community.
  • Leadership ▲ The board will adhere to the Code of Conduct at all times. Any breach of the code will be dealt with a review procedure conducted by an impartial team. The results of the procedure will determine the proper course of action. All reviews will be handled on a case-by-case basis while taking into consideration previous decisions made. In more serious cases, the board can decide to suspend or remove a member. All board members and staff are required to sign and adhere to the Code of Conduct.
  • Technology ▲ The blockchain used by the Adel ecosystem will initially be the Nxt platform, and will move to Ardor once it is deemed suitable. Because of this, the security of projects and the ecosystem itself will be dependent on the security of Nxt. To ensure platform resilience and integrity, Adel will maintain a strong relationship with Jelurida, the Nxt and Ardor core development team, as well as the community itself. In cases where Adel can be of assistance to the platform, Adel will contribute resources to protect the integrity of the platform.
  • Community ▲ Adel will establish an open and productive communication channel with the community. Integrity will be established through a Community Code that will be agreed upon by each member as soon as they join the community. Abuse, negligence, or any unethical behavior will be investigated and may result in the community member being blacklisted from the forums, voting, or project participation.
  • Fiduciary ▲ While Adel is working to eliminate the need for trusted third-party authorities, there are some cases where trust is necessary – especially with actions external to the blockchain. For example, the approval of projects will be initially submitted to a Project Review Committee. This will include members that have expert oversight in venture capital investments, as well as legal, operational, and technical expertise.
  • Know Your Customer, KYC ▲ Project managers, the board, and staff members will demonstrate due diligence to the best of their abilities to ensure projects comply with legal and regulatory requirements. If further legal advice is required, the community will be solicited for their expertise and will have their credentials assessed. If none are available, then assistance outside of the community will be sought and brought in. Projects that do not satisfy legal and regulatory requirements will either be rejected or modified during the assessment process.

Protection

Integrity is one of Adel’s most important values. At Adel, we are dedicated to delivering a secure and trustworthy platform for community members so they can safely participate in the ecosystem. It is important that the actions we take as leaders of the community deliver on that goal. Adel’s staff will contribute their time and expertise to continually manage and improve the ecosystem. We are committed to helping our community succeed by operating legally and ethically in accordance to any applicable laws and regulations. Adel believes that in adhering to these principles we not only protect the Adel brand, community and its members, but also serve to protect the integrity of “blockchain as a brand”, as well as innovative projects that will be introduced to society and leverage this new technology.

About Adel

Adel is a technology incubator for blockchain innovation.

  • Adel is a global cryptocurrency community that is self-sustained and offers its own economic ecosystem with the Adelphoi token. Our community focuses on creating, developing and implementing use cases involving blockchain technology that covers a wide range of digital and physical industries. Supported projects are developed, discussed and decided by community members.

About the Authors

Gabriel Dusil

Gabriel is a seasoned sales and marketing expert with over twenty years of experience in senior level positions at companies such as Motorola, VeriSign (part of Symantec), and SecureWorks (part of Dell). His strengths lie in international business development and strategic partnerships, as well as the unique ability to translate complex ideas and technologies into language that decision makers can easily understand. Gabriel has a Bachelor’s degree in Engineering Physics from McMaster University in Canada and possesses expert knowledge in cloud computing, IT security, and video streaming technologies (Over the Top Content, OTT). Gabriel also runs his own company, Euro Tech Startups s.r.o., and manages two blogs: https://dusil.com/ and https://gabrieldusil.com/.

Travin Keith

Travin is a seasoned marketer who specializes in web and international marketing. He has worked with over a hundred businesses around the world spanning a wide range of industries. Since 2013, Travin has been involved with cryptocurrencies as a trader, investor, marketer, and community member. He joined the Nxt Foundation as a board member in 2016, serving as its Marketing Director and a Blockchain Consultant, as well as the representative to Hyperledger, a Linux Foundation Project.

Further Reading

1. Building a Decentralized Ecosystem

http://wp.me/p3eaA5-ifv

In this white paper, we discuss the phased rollout of Adel’s ecosystem. The first phase includes the launch of Adel through an initial coin offering (ICO). Phases two and three will focus on building and managing the community.

2. An Incubator for Blockchain Technology

http://wp.me/p3eaA5-ifI

This paper provides an overview of Adel and its ecosystem. We outline how the community can interact with Adel’s staff, as well as activities surrounding project submission, approvals, and operations.

3. Responsibilities in a Crypto-economy

http://wp.me/p3eaA5-ifT

Adel is a community where every member is connected through token participation and voting. This paper outlines the roles and responsibilities of community participants, including its members, project managers and Adel’s leadership.

4. Creating Value with Cryptocurrency

http://wp.me/p3eaA5-ig9

This white paper outlines Adel’s advantages from three vantage points: its underlying blockchain technology, the Nxt and Ardor platforms from which Adel is built, and the additional business processes Adel has introduced to provide effective, community-based funding.

5. Differentiation in the FinTech Revolution

http://wp.me/p3eaA5-igm

In this paper, we discuss existing cryptocurrency technologies that are available today by providing an overview of the blockchain marketplace and Adel’s position within it.

6. Maintaining Integrity

http://wp.me/p3eaA5-igq

This white paper outlines the principles of a community-based ecosystem and how this can be sustainable and profitable using cryptocurrencies as its foundation.

7. Inspiring Innovation

http://wp.me/p3eaA5-ih8

Spontaneity and creativity is impeded by a heavily formalized process which has been established by sizeable institutions that have evolved over many decades of operation. We outline how Adel will change the investment landscape and inspire technological innovation.

8. Protecting the Community

http://wp.me/p3eaA5-ihc

In this paper, we outline established procedures to mitigate risk to Adel’s ecosystem while protecting its brand, infrastructure, and the integrity of blockchain solutions.

9. Managing the Ecosystem

http://wp.me/p3eaA5-ihg

This document frames the procedures established by Adel for community projects. We discuss the guidelines for proposal submissions, reviews and approvals, as well as management and operational oversight. We also outline fund allocation to approved projects and reward distribution to stakeholders.

10. Designing a Blockchain Incubator

http://wp.me/p3eaA5-ihB

In our continued efforts to communication Adel’s vision, this white paper expands our three-phase roadmap explained in White Paper #1, “Building a Decentralized Ecosystem”. We have now included our timescales to list ADL on exchanges, the introduction of our Adelshare (ADS), move to Ardor, and project execution (phase 3).