Meltfactory
decentralize transform disrupt
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BLOCKCHAIN STRATEGY & VENTURE ARCHITECTURE

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BLOCKCHAIN STRATEGY DEVELOPMENT

BLOCKCHAIN VENTURE ARCHITECTURE

COMMERCIALLY VIABLE, OPTIMALLY DECENTRALIZED BUSINESS MODELS

TOKEN-POWERED PLATFORM DESIGN & TOKEN ENGINEERING

CONCEPT DEVELOPMENT AND WHITEPAPER CREATION

INVESTMENT PITCH DECKS & FUNDING MODEL RESEARCH

RETAINED ADVISORY

VENTURE PLANNING & STRATEGY EXECUTION

EXECUTIVE BRIEFING, EDUCATION AND COMMISSIONED RESEARCH


Meltfactory: decentralize, transform, disrupt

Meltfactory is a global consulting community of blockchain experts, business leaders and technology builders. We architect, incubate and develop our clients’ blockchain ventures in order to decentralize networks, transform organizations and disrupt industries.

Our community includes:

  • academic expertise in designing token-powered, network effects business models

  • CEO-level experience of leading, building and scaling billion-dollar digital platforms

  • research and guidance into multi-token funding mechanisms, decentralized venture valuation, decentralized exchange design, prediction market design

  • PhD-level token engineering using formal methods for mechanism design

  • blockchain technology architecture & development including designing new ERC token standards

  • proven expertise in venture architecture and development

  • seasoned expertise in investor pitching and venture funding

Get in touch with us to set up a consultation, or use the contact form at the bottom of this page to enquire whether our services are right for you.

 

Contact

➤ LOCATION

London Headquarters

Global reach

☎ CONTACT

justin.banon@meltfactory.io
+44 7865 086490


Services

VENTURE ARCHITECTURE & DEVELOPMENT

Blockchain technologies transform the opportunity landscape and expand the design space for organizations. We help our clients exploit these changes by:

  • architecting blockchain ventures from concept, through strategy and on to execution

  • developing venture concepts to evidence Proof of: Problem, Market and Scale

  • designing commercially viable decentralized business models that both create and capture value

  • engineering token models that leverage token-powered network effects to drive scale and adoption

  • securing investment with compelling investment pitch decks and novel utility / equity / multi-token funding models.

  • venture development, planning and execution


COMMERCIALLY VIABLE, OPTIMALLY DECENTRALIZED BUSINESS MODELS

Decentralization matters because it enables users to avoid the monopolistic rents and market power of centralised networks, whilst melting power and value into the community. However, we believe that maximally decentralized business models, which rely on token appreciation with no profit model, are not viable except for public utility protocols. Further, decentralizing at the expense of UX and system functionality results in low adoption and zero scale. Instead, we subscribe to the thesis that: value will accrue to hybrid, commercially viable, optimally decentralized business models
We design for our clients- commercially viable, optimally decentralized business models, with:

  • Fair profit-  a fair exchange for increased value but avoiding monopolistic rent extraction.

  • Investable- reward for founders and to incentivise investment.

  • Optimally decentralized- across 13 dimensions to ensure best UX and system functionality and in order to drive user adoption and business scale.

  • Transparent- profits, governance and values

  • Explicitly declared- within a manifesto, whitepaper and smart contracts

Decentralized dimensions radar diagram

Tokens will eat the enterprise from within,
because investors will make money and the community will gain...
Tokenize. Shares become tokens.
Decentralize. Spread power among more people; users get tokens for past and future contributions.
Melt into the community. Over time, both value and power spreads further.

Tokens help overcome the bootstrap problem by adding financial utility when application utility is low. [Source: Chris Dixon -  Crypto Tokens: A Breakthrough in Open Network Design]

Tokens help overcome the bootstrap problem by adding financial utility when application utility is low. [Source: Chris Dixon - Crypto Tokens: A Breakthrough in Open Network Design]

TOKEN-POWERED PLATFORM DESIGN & TOKEN ENGINEERING

Tokenized networks yield two key benefits for network participants:

  • Participant vested interest- in the success of the network through tokenized ownership

  • Token incentivized growth- alignment towards activities that will make the network successful

We combine proven gamification and loyalty mechanics with cryptoeconomic mechanism design to architect high-growth, token-powered platforms. An example mechanism is rewarding early users in order to overcome the bootstrapping problem of traditional network-effects business models.


ICO Funds Raised in 2018 courtesy of https://www.icodata.io/stats/2018

ICO Funds Raised in 2018 courtesy of https://www.icodata.io/stats/2018

INVESTMENT PITCHES & FUNDING MODEL RESEARCH

The ICO bubble of 2017 has burst, with ICO funds crashing by 90% yoy in Q4 2018. As a consequence blockchain projects are struggling to find investment using now traditional ICO funding models.

Meltfactory is at the forefront of research into crypto funding models. We research funding models for our venture clients and investment theses with VCs and economists.

Whilst the market for utility token investment has crashed, we are at the early stages of a major shift towards programmable equity tokens. We are currently researching & developing multi-stage, dual token funding models. Below is a high-level example:

  1. Obtain seed funding and issue convertible note for equity

  2. Launch Equity Token Offering to global pool of investors, once infrastructure is available H2 2019

  3. Convert notes to equity tokens with increased liquidity and automated compliance

  4. Launch product with utility token

  5. Issue utility tokens to early investors as additional bonus


INVESTMENT THESES

Economist Carlota Perez’ work on technological revolutions, is the  VC community’s goto framework for describing technology change and economic growth cycles:

Courtesy of https://avc.com/2015/02/the-carlota-perez-framework/

Courtesy of https://avc.com/2015/02/the-carlota-perez-framework/

  • Marc Andreessen: the single best book to understanding how this [software] industry works.”

  • Fred Wilson: “based his investment thesis on the concepts in this book.”

The framework describes how:

to frenzy “

    • Fred Wilson: “2017 is the year when crypto/blockchain entered

the frenzy phase”

  • this frenzy has been followed by the collapse of 2018

The framework  predicts a 2019 recovery and a “golden age” of growth.

We agree with Carlota Perez and leading VCs that now is the best time to invest in the blockchain technological revolution.  With the speculative frenzy over, investors are once again investing in business fundamentals, this was the same phase when Amazon and Google were formed and it is our opinion that this is the phase when the next unicorns will emerge.

[For a deeper analysis of the economics of blockchain see this article on The Nature of Crypto, published in Hacker Noon by our CEO & Founder- Justin Banon]

the lesson I’ve learned in my career is to invest into the post crash cycle. When you do that, and do it intelligently, you are rewarded greatly.

Exponential growth in Economic Wealth from 1750 ( Beinhocker )

Exponential growth in Economic Wealth from 1750 (Beinhocker)

THE NATURE OF THE CRYPTO TECHNOLOGICAL REVOLUTION

Our CEO & Founder, Justin Banon, has developed a thesis that: Crypto is an socio-technological meta-innovation on the scale of writing, the scientific method and markets.

The scientific method created an explosion in human knowledge and accelerated the clock speed of technological progress. In combination with joint stock companies and financial markets, science-fuelled technology spurred the formation of the modern, capitalist economic order and drove exponential growth in economic complexity and wealth. And all this through accelerating the process of innovation: the commercialisation of invention.

Likewise, the crypto meta-innovation has the potential to:

  • upgrade society and the economy’s adaptive and organising capability

  • accelerate the rates of technological evolution and economic growth

  • upgrade the evolutionary mechanism of heredity to support a Cambrian explosion of more complex computer and human-computer organisms

Crypto has the potential not just to increase innovation, but to accelerate the rates of technological evolution and economic growth to such a degree that we fundamentally solve the innovation problem. This would trigger a metasystem transition to a post-scarcity, post-capitalist cryptoeconomy of abundance, whilst solving for our species-threatening negative externalities

 

Contact us

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