RootProject, a non-profit organization dedicated to restructuring capitalism and ending extreme poverty, leverages a cryptocurrency in conjunction with crowdfunding and recent innovations in urban public policy. It was started by two Ph.Ds and a Y Combinator alum.
The project has launched a pre-ICO, a non-equity crowdfunding project that will protect against any attempt by the U.S. government to regulate cryptocurrency, something the project’s founders believe will eventually happen.
The new cryptocurrency system is designed to generate fast and long-term growth for the currency’s demand.
A Tax Subsidized Crypto
Individuals and institutions will be able to create crowdfunded projects that build their reputation with minimal labor – and receive tax deductions. This would in effect make RootProject the first tax subsidized cryptocurrency. A portion of each project’s wages will go to a worker pension fund-like smart contract, which will fuel systemic reduction in liquid token supply.
Machine learning and real-time data publication will support the ROOTS token with price behavior attractive to large financial institutions with diversified portfolios.
Such a currency-institutional system designed to generate extensive growth rests on three innovations.
The first is laborless crowdfunding, a model that creates supply and demand for community projects. Project initiators will not have to complete the project or be knowledgeable about cryptocurrency. Socially visible projects will build reputations.
The second innovation is the new cryptocurrency. A portion of a project’s proceeds will benefit token purchases that in turn will drive currency demand. The balance of the proceeds will go to supervisory wages, material and wages for workers. Because the currency supply is capped, each project reduces liquid token supply.
The third innovation is a pension-like fund. In addition to wages paid in USD, cryptocurrency worth half a day’s earnings are distributed to a medium-term pension fund type of equity, which further reduces liquid token supply. RootProject will launch its smart contract on the Ethereum blockchain.
RootProject is a dual-facing app, the first being a crowdfunding platform for local projects. A user will download the app or go to the website to begin a new project. Mobile-first design will enable the user to propose a new project such as a wall garden on a building while they are walking home. They enter a budget, location, before and after images and a description.
The user then either donates the project amount or an initial donation. If they don’t cover the budget themselves, they begin a crowdfunding campaign. Donations are received, and within 30 days the minimum threshold is reached or the funds are returned. Once the threshold is reached, the project is reviewed and confirmed.
The total budget for the project is 87% of total donations. 3% is for credit card and handling fees, and 10% to purchase ROOTS tokens on the open market. 87% is a higher project spend rate than most charitable organizations can deliver, and in line with that of global organizations.
A Project Example
Albuquerque, New Mexico introduced a program that offers an example. A non-profit employee drives a van offering a day’s work to panhandlers. Albuquerque has reduced unsheltered homeless by 80%.
When the project is ready, RootProject assigns a foreman and a budget for materials, tools and labor. A work start date and meeting point is assigned.
While the crowdfunding platform will be for community-specific projects, some larger crowdfunding campaigns will be allowed on the platform. One example is a campaign that will raise funds for the smartphones that RootProject will provide participants
There will also be recurring revenue projects, a portion of which will go to cryptocurrency purchases such as an ice skating rink with equipment rentals on basketball courts that are not used during the winter – generating recurring revenue for RootProject and recurring wages for participants.
Pre-ICO Has Launched
A maximum 10 billion ROOTs ERC20 tokens will be created on the Ethereum blockchain during the ICO campaign.
The pre-ICO is already live. The current rate is ROOTS equals 0.00006(6) per ETH or a 50% bonus. The pre-ICO is hard capped at $300,000.
RootProject will begin its ICO on August 7, selling 20% of the total supply to crowdsale participants. It will last for a period of 30 days or until 2 billion ROOTS are sold. Each ROOTS will be sold for .0001 Ether, approximately $.0259, making the effective hard cap for the crowdsale approximately $45,000,000 to $50,000,000.
Tokens will become transferable within three weeks after the ICO completion, and will be listed on major exchanges.