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Q&A with Token Foundry

Token Foundry and TF token engineers (Gregory Rocco and Jacob Blish) will be answering questions on Friday, August 3rd at 10:00AM PST.

Token Foundry is a global platform that provides everyone a safe and fair way to buy and sell tokens. Clients include companies like FOAM, Flying Carpet, and Aikon.

posted 1 year ago

with or if you'd like to join the discussion.
Soona
How does Token Foundry diligence clients?
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chaingenius
@soonaorlater We treat potential clients similar to how a VC would. We look at their backgrounds, ability to execute, and the code base itself. If a client cannot build out the vision, the token design and sale mean nothing. After that we look at the blockchain use case and potential token design and if that makes sense or not.
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Crypto Bobby
Hey Jake and Rocco.. Wen BBQ man date?

Also, what is the most interesting recent token model you've seen to more effectively capture value?
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Rocco
@crypto_bobby Soon™
There's nothing as of recent that has caught my attention but in terms of legacy models I'm still a large fan of MKR's capture through governance. ZRX deals with governance and apathy, but if you under-collateralize DAI, you get inflated and lose a ton of value.
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chaingenius
@crypto_bobby Most recent AND out in the real world? Augur's REP. One of the few out on the market with real user's. Reporters derive value out of actually doing their job correctly. Oldie but a project that also is used IRL.
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Crypto Bobby
@Obstropolos may I suggest Hometown BBQ?

I also need to dive deeper into MKR's governance, but I feel like it's one of the most respected in the industry at the present time, at least within projects not named Bitcoin
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Rocco
@crypto_bobby @crypto_bobby That and decred. Phil has done some good work explaining the flaws in 0x -

They've recently put their risk framework in a series: https://medium.com/makerdao/makerdao-governance-risk-framework-38625f514101
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chaingenius
@crypto_bobby @chaingenius Jinx you owe me a BTC!
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Sanaya Mirpuri
What percentage of token launches have you guys come across that have really thought through their token economics? Do you see an upward trend of companies taking this seriously now? How do you see token economics evolving as the industry grows and moves forward?
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Rocco
@Sanaya-Mirpuri We've noticed a positive trend in projects moving beyond the "appended" models of the 2017 hype cycles which is nice to see - but I'd definitely agree that more companies are thinking it through. Along with that comes a natural vetting where there are less companies that are "tokenizing for the sake of tokenizing."

Eventually in a year from now or less all the primitive models will be more or less defined, and there will be a larger emphasis on importing new standards (721,998, etc) into existing models.
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Lawrence Hecht
@Sanaya-Mirpuri A simpler question: what % of projects that want your help are just looking for funding and are searching for a blockchain justification to do an ICO?
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Lawrence Hecht
@Sanaya-Mirpuri @LawrenceHecht sorry, that wasn't a simpler question, just and additional one.
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StoreOfValue Blog
How does Token Foundry work with Securities Law?
1
Rocco
@SovCryptoBlog Carefully - we're working closely with the Brooklyn Project to lead us through this along with our internal legal counsel.
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Brian Kim
To the token engineers: Why did you join Token Foundry? How would you describe the engineering culture at the company?
1
Rocco
@brianjckim Personally I joined token foundry to apply my knowledge a bit more directly to the space in terms of token modeling on a wider scale. It's typically a relaxed culture with a melting pot of intelligent people to teach and learn from.
1
Michael Brune-Waelser
While Token Foundry is building the foundation for the inevitable tokenised future – will you also try to have a hand in how it's being used? Or will you leave that up to the builders? When it comes to compliance – what's the process? Also, do you try to gauge user participation before a sale? I ask because of the quiz – which is very interesting. Anyways, good luck to you and the team!
1
Rocco
@michaelbrne We do in fact work with the companies to talk about how the tokens are to be used, as we play a heavy part in designing the models. Part of the purchasing of tokens require not just the quizzing, but the purchasers to demonstrate that they use the tokens in question. In terms of compliance, we screen all our participants with a KYC process and we always love to get a feel of the community purchasing tokens through our various social channels. We're glad you thought the quiz was interesting - we see it as an integral part of our process.
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Nick Neuman
How do you get paid by the companies you work with?
1
chaingenius
@Nneuman We are paid from funds raised and a small portion of tokens issued. This is to make sure we have skin in the game and are performance driven instead of profit driven. The tokens that we receive are used to help bootstrap the network as an early adopter.
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Dennis Stücken
In a short description, how does the steps/process of buying tokens on your platform look like for the user?
1
chaingenius
@dstuecken The high level process is: Sign up, KYC/AML, take an initial assessment test showing you understand the basics of the blockchain space, select a project, take a project specific assessment test and then purchase tokens. After purchase you must prove use of the tokens on the platform in order to unlock them.
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Lucas Stewart
Do you like work tokens and why?
0
Rocco
@Lucas-Henry-Stewart Personally I like work tokens as a means to measure the true value of a network while we're still in the process of working through these primitives. Governance tends to be a bit more fascinating to me, especially in the form of token governance due to its finality in deployment.
1
Lucas Stewart
@Obstropolos great insight! Thanks for noticing me :)
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Nick James
why KYC
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Rocco
@nickjamesbtc We use KYC in order to screen our purchasers to remain compliant with all participating jurisdictions.
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Nick Neuman
I like the idea of the questionnaire - I wish we had something similar with US securities law and being an "accredited investor".

I have a couple of questions on it:
1. How did you decide how difficult to make the questionnaire? This seems like a tough decision b/c on the one hand a tough quiz ensures your audience really knows what they're doing, but on the other it reduces the token distribution.

2. Are the questions randomized out of a pool, or could someone cheat if they found answers posted on the internet (thinking back to my high school days of teachers re-using the same test questions for years here)

3. Have you considered doing a quiz specific to each token? A lot of your TF Standards mention that your goal is to only allow purchasers who actually want to use the token for it's intended purpose. However, if someone with a general knowledge of tokens passed your initial quiz, they could then buy whatever tokens they want without having plans to use them or even knowing how they work.

Thanks!
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chaingenius
@Nneuman @LawrenceHecht We do check if the responses are accurate but allow for some margin of error. Like any test, you do not need to be perfect but show that you have understanding of what you are purchasing.
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Lawrence Hecht
@Nneuman Questionnaires are the same thing as the forms people fill out when submitting their token to sites like ICObench. They are good, but teams do "study for the test".

I want to know if TF checks to see if the responses are accurate.
0
chaingenius
@Nneuman
1. The Brooklyn Project help guide the process of how difficult or not to make the tests. We need to set reasonable expectations of preventing wild speculation.
2. The questions are not currently randomized but that is being released shortly to prevent this exact behavior. Similar to cheating in high school, while you might pass the test it won't guarantee success of your participation in the success of a network.
3. We do currently have a specific quiz for each token. There is a base level test for registration and then a customized one for each project.
0
public static avoid
Does Token Foundry want to issue security tokens and is your team actively looking for projects in the asset-backed token space?
0
Rocco
@_eljee We sure are looking to issue security tokens in the future - please make sure to submit all inquiries through our form on the website.
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Romane Geraci
What does a token engineer do exactly?
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Rocco
@Romane-Geraci
-Identify all participants in a particular market
-Evaluate existing models in the vertical
-Model incentives for all participants to keep things running
-Rationalize all bad actor possibility
-Stress test all participant possibility of gaming the system
0
chaingenius
We make a da token.
We look at the potential participants in a network and then determine why they would participate and how to incentivize them properly to behave as good actors. We also need to account for edge cases and irrational actors that could attempt to exploit the system for personal gain. We also take into account of how the system will upgrade, grow and rebalance over time through governance as no network will get it perfect on the first try.
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Romane Geraci
What are your favorite projects in the space? Thanks!
0
Rocco
@Romane-Geraci
Currency: Monero, Decred
Platform: Rchain, Cardano, Raven
Token: Mainframe, Maker
0
Lawrence Hecht
Do you give projects negative points for having "smelly" advisors?
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Rocco
@LawrenceHecht On a scale of 1 - MTA subway car with a broken AC in the summer, how smelly are we talking.
1
chaingenius
@LawrenceHecht It does raise some red flags and as @Obstropolos it depends how smelly we are talking. More important however is if the team can build the actual project.
1
Lawrence Hecht
@LawrenceHecht @Obstropolos 1 = the person did not actually agree to be an advisor, 2 = the person is selling their advice" to anyone who will give him/her money, 3) significant bio lies...like that
0
Rocco
@LawrenceHecht @LawrenceHecht Definitely a negative for us!
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Nick Neuman
How do users "prove use" of a token?
0
Rocco
@Nneuman It depends on the project - for example, Virtue Poker purchasers had to play hands of poker on the platform.
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Nick Neuman
@Nneuman @Obstropolos And then how are you verifying that? Do the platform's contracts need to emit events that let you verify that users are correctly utilizing the token?

And how does this interplay with your ability to stop token holders from selling the token before proof of use?
0
Rocco
@Nneuman @Nneuman I believe there's a lock until the functions are executed - this is definitely a question more for the development team.
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