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UPDATED Pre-Proposal: Dash + Alt Thirty Six Sponsorship Marketing 2019

Discussion in 'Pre + Budget Proposal Discussions' started by ThirtySix, Nov 6, 2018.

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Would you vote yes on this proposal?

  1. Yes

    6 vote(s)
    25.0%
  2. No

    18 vote(s)
    75.0%
  1. ThirtySix

    ThirtySix Member

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    We are absolutely willing to break up the proposal as the network gets to view the progress to determine funding on additional sponsorships for 2019.
     
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  2. Fiicus

    Fiicus New Member

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    I agree that you have to follow the law and do things appropriately. Not understanding the scope of what you needed to do legally is a mistake, it's something that should have been researched, and it reflects poorly on Alt36. Everyone makes mistakes, but funding for this project started in what, June 2017, and things were supposed to be live 6 months following that. It's been over 16 months and while Dash Core and Alt36 may see a lot of work being done, all that we're seeing is words. I'd love to see you guys actually deliver on your Q4 2018 deliverables, it would in large part assuage my apprehension and renew my faith in the company. Missing that self imposed deadline would push things in the other direction, and I imagine that many people would agree with that outlook.
     
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  3. ThirtySix

    ThirtySix Member

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    At the time of building the platform we did not have access to the legal advisors that assisted in our most recent compliance review. We did research and review the grey areas of our business model prior to building, but it was not clearly defined. During the build of the platform, we were actively seeking legal advise and were told/advised by legal counsel that Dash has used that we did not need to obtain any licensing. Once we were able to put funds together to retain legal advice from a top blockchain and MTL firm, (earlier this year); we realized if we want to protect the Dash grants and ensure long term success, we would need to move forward as an MSB with MTLs. As a company we believe in doing things the right way and sometimes that can cause delays. This doesn't necessarily classify as a mistake, but shows that we are serious about getting the correct information and protecting the project to ensure success.
     
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  4. mastermined

    mastermined Active Member
    Masternode Owner/Operator

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    When will the Dash 36 month exclusivity agreement start? After the beta is completed i'm guessing?
     
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  5. nodalsoup

    nodalsoup New Member

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    So transaction count is effectively zero at the moment?
     
  6. akhavr

    akhavr Active Member
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    Sorry, but I've not seen answers to (1) and (3) in the https://www.dropbox.com/s/7jzp3ouarzu8exg/Dash Network Update Nov 2018.pdf?dl=0

    So far, I'm going to vote "no" on a single 3month funding proposal, but will likely to vote "yes", if the proposal would be split up to deliver funding through 2018q4 and 2019.
     
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  7. toknormal

    toknormal Active Member

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    The way I see this playing out now is:

    Year 1:
    • Dash funds the major software development work, legal due diligence costs and corporate operating costs for the platform which is ultimately not Dash exclusive.
    • Much of that budget would qualify as capital costs of the type described in section 3 here which means that both the corporate equity in Alt36 and the intellectual property value of the software platform remains with private interests (not "necessarily" an issue in itself)
    • There is no "adoption" ROI this year for the network as there are no live commercial implementations, even at a trial level (e.g. 1 merchant who's using it live)
    Year 2:
    • Dash funds a major promotional push which involves both expenses and significant conference sponsorships in the 6-figure level
    • This spans into 2019 and there is still no "adoption" ROI for the network because still no live merchants
    Year 3:
    • Dash celebrated as launch customer
    • A tiny trickle of blockchain activity starts to appear from the odd merchant using the Alt36 platform
    Year 4:
    • Exclusivity agreement runs out
    • All major cryptocurrencies supported
    I think if this was a regular "VC" project with "VC Capital" invested in it, this funding MAY be justified. But the Dash funding is not invested - it's "gifted". No equity is taken in return, so it's essential that a substantial and verifiable market penetration in terms of blockchain use is demonstrated to justify the award IMO. Otherwise it's best to burn the coins because they just get dumped on the exchange markets and dilute everybody.

    Also we are now starting to address the longer term requirements of the project and longer term this isn't a Dash-specific platform, it's a generalised platform who's scope (the more time moves on) is increasingly likely to span a wider range of blockchains.

    So the ROI under these circumstances has to be questionable IMO.

    Like I say - that's just my perception of the project at the moment. Am happy to have my perceptions "corrected".
     
    #37 toknormal, Nov 8, 2018
    Last edited: Nov 8, 2018
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  8. ThirtySix

    ThirtySix Member

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    I believe your questions are answered on page 14. We will update the proposal today to show the proposal split up to deliver funding for immediate sponsorship marketing, specifically Andfriends project. We will then submit an additional proposal for the remainder and network can re-evaluate the progress.
     
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  9. nodalsoup

    nodalsoup New Member

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    @ThirtySix Would you consider giving the masternode network some equity in the business?

    Can you clarify the date of when the 36 month exclusivity period ends? Would you consider an extension to this considering there have been a negligible quantity of transactions on the platform to date?
     
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  10. ThirtySix

    ThirtySix Member

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    As far as we've been told, the network is not setup to retain equity in the business. We have asked this same question to see if this would be an option as we submit future proposals. An entity would need to be setup and structured to invest in the Dash projects. The current treasury system or something similar could probably be used for voting and the investment entity would retain ownership in the projects similar to a VC or private equity firm. There are a few other options we've brainstormed on our end but for now we are told the structure and legal entity is not setup to support this type of engagement.

    The 36 month exclusivity period is not anywhere near the end at this point. We are circling back with Dash core to get an exact date. Our goal has always been to make the relationship between Alt Thirty Six and Dash mutually beneficial. The build of the platform is the first step, outside of operations there are several other growth related activities that require funding to support the project. This last year we focused on; building the awareness and excitement around the application enabling Dash transactions, secure a testing environment for integrators + complete our first partner integrations to enable compliant transactions. The results we are setting out to achieve in 2019 are continued goals from last year but now also more importantly promoting the live integrations, register accounts and generate transactions in our licensed states.

    To extend an exclusivity we would also want to have an understanding that additional proposals would be submitted for growth related activities, that would increase the success of the platform adoption. We would not asking for favoritism or automatic approvals, but an understanding that our team may submit future proposals as it relates to growth and proven success measures.
     
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  11. ThirtySix

    ThirtySix Member

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    The proposal has been updated to reflect the most valuable and upcoming sponsorship opportunity. We will submit the request for remainder on a later proposal voting cycle.

    *UPDATED* COST BREAKDOWN FOR NOVEMBER 2018 VOTING CYCLE

    CONFERENCE SPONSORSHIP + TRAVEL [The Weed Experience] $170,000
    *This also includes costs for our materials, shipping + build associated with the event.

    PRICE FLUCTUATION BUFFER (5%) $8,500

    USD TOTAL WITH PRICE BUFFER $178,500

    DASH MARKET RATE $168.84
    calculated via coinmarketcap on 11/08/18 at 8:53am

    DASH EQUIVALENT 1,057

    DASH PROPOSAL FEE 5

    UPDATED DASH TOTAL 1062

    Requested *UPDATED* payout schedule over 2 months:
    Month 1 Dec: $89,250 + ½ proposal fee = 531 Dash
    Month 2 Jan: $89,250 + ½ proposal fee = 531 Dash
     
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  12. Stealth923

    Stealth923 Well-known Member
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    The 36 month exclusivity period in my opinion should commence when both of the below are completed:
    a) The first integration is completed where a real purchase can be made at a dispensary in-store by a customer.
    b) The first ATM is operational in a store.

    I feel as though we have been taken for a ride by Alt36. Saying the 36 month exclusivity starts when the product is "launched" but having zero customers, no ATM's, no integrations, and still in beta phase as long as you see fit is unacceptable. All the while promising complete opposite many months prior to launch.

    Until the above is resolved, I will be voting no.
     
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  13. ThirtySix

    ThirtySix Member

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    CannTrade is our first integration, we also now have registered accounts/customers, this is all in the 18 page document we put together for the network. We've never said we will stay in beta as long as we see fit. The beta process is being monitored over the next couple months. Monthly updates have been submitted to the network consistently explaining current stage. While it's never the intention to go through delays with technical projects, it's a common occurrence. When delays happen you work through them and keep moving forward, that's a part of business. In order for Alt Thirty Six to be successful, we have dedicated 100% of our time towards putting all the pieces and partnerships in place that will ensure the adoption of the Dash exclusive platform. We were asking support from the treasury system to contribute towards a revenue generating, brand building opportunities as we keep the momentum moving forward. All of the funds granted for marketing thus far, have helped build this momentum, to achieve the best value we identified additional opportunities to continue this path.
     
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  14. nodalsoup

    nodalsoup New Member

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    Last I heard this legal entity was still in the pipelines - Maybe @Ryan Taylor could offer some insight?

    That's great to hear about the exclusivity period, I think its fair to say that the ambiguity around this was an area of concern for a lot of people. Knowing an exact date would be enormously helpful.

    Is there any chance of Alt36 putting together a rough 'n' ready road-map and some forecasts of costs you expect to encounter (marketing, sponsorship, conferences etc) for the next 2-3 years that would be relevant to what you might approach the DAO for? Personally I thought the first round of funding was supposed to give Alt36 a finalised product (at least an MVP) that was doing live transactions - I didn't think there would be much in the way of supplemental funding past the original proposal (without having live transactions that is). It's very hard to come to any sort of decision without having an idea of all of the costs involved.


    Thanks for your time so far.

    The kiosks and the platform look slick by the way, great work!
     
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  15. Arthyron

    Arthyron Active Member
    Masternode Owner/Operator Moderator

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    Just to clarify, while the exact details are still in flux, the capacity of the network to hold equity is definitely going to come in to play with the solidification of Dash Ventures, which will be a parallel organization based in Cayman Islands with that capability. Currently, Dash is seeking a letter of no-action from the SEC, but I suspect after that determination is made, Ryan Taylor has indicated our counsel in Cayman Islands will be able to nail down the formulation of this organization pretty quickly, so the DAO's ability to hold equity could be available relatively soon. I understand from one of the recent MJBull podcasts in which Ken appeared, that you've already sought additional funding from qualified investors, so it's clear that those funding avenues are hypothetically open.

    All the pieces for such a possibility seem to be falling in place, so while it may or may not be the lynchpin of securing more funding, it would be something definitely worth discussing, as it's likely going to become feasible pretty soon. I trust you all have Ryan's ear, so you can probably discuss the matter with him directly as well.

    Also, when you get a chance, could you answer my question about the involvement of the celebrities featured in the Weed Experience deck? That could be a big draw for funding that proposal potentially.
     
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  16. ThirtySix

    ThirtySix Member

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    Apologies, I think the way I replied to your post, the first two answers got hidden. Please see bolded answers.


    1. I was looking over the deck for the Weed Experience and noticed a number of A and B list celebrities mentioned. Could you elaborate on the capacity in which they will be involved? Will they be present for the event, posting on social media about it, licensing their music for it, etc? The celebrities mentioned will be participating through performances, appearances on site and some of which have cannabis brands/products will be promoting discounts at local participating dispensaries for their products. If the location is able to obtain proper licensing in time, the products will be sold on site. In addition to performances some of these celebrities with cannabis related businesses will also be sponsoring the event. The event experience is in the process of signing a 3-5 year lease. We have also introduced them to one of our major partners that may be able to assist with the location lease and promotion of the Weed Experience.

    2. It's been asked a few different ways, but when can we expect to start seeing actual activity on the blockchain so we can begin to assess if and how much funding we want to allocate to your marketing efforts? I understand there were some obstacles and hurdles and that integrations take time, but that is I think the biggest determining factor in whether or not we'll continue to fund these efforts. You've built this great system, and secured some ideal partnerships, but we want to actually see it in action. Maybe you could reach out to some of your partners and get them to record themselves or see if there are any customers willing to do a video review of using your system or combined systems? We understand seeing this in action is focus for the network, this is also a focus for Alt Thirty Six. We will start to see an increase in transactions on the platform by merchants in AZ and CA over the next month. MJBizCon in Vegas next week will be huge for getting merchants on the system and getting them to begin processing via the CannTrade integration. Testimonials is a great selling point, and this is something we are in talks with right now and hope to put this together to share on our website and with the network.
     
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  17. ThirtySix

    ThirtySix Member

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    At this point, given the existing proposals in Dash Central that will most likely pass and current available funds, we won’t be submitting this proposal for Nov voting.

    We’ll need to figure out our participation capacity with Andfriends in the meantime and ancicipate submitting the remaining sponsorship opportunities in a later voting schedule.
     
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  18. Name3

    Name3 Member

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    I don't think anyone is faulting Alt36 for the delays you guys have experienced, every business comes into unexpected challenges and sometimes those take time to resolve. We are apprehensive that these delays have shortened our period of exclusivity in a meaningful way. I don't think it is unreasonable for us to want to expand our period of exclusivity before providing additional funding.
     
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  19. solarguy

    solarguy Active Member

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    I appreciate that Alt-36 is willing to monitor the budget situation to minimize disruption.
     
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  20. Mike Crypto

    Mike Crypto New Member

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    I would support this proposal in 2019, when the price recovers, there is no way that this can pass now when it would take majority of the budget that will be left after core proposals. At this stage, we need to focus on smaller proposals. Wait for Dash Ventures and come back with a much smaller proposal divided into micro-development milestones that can be tracked and not large monthly payments focused towards a single end goal.
     
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