I want to talk about i SEOs you know it
was it's a big part of the interim
ecosystem now that was not planned you
know I was not planned to be that like
such an important thing in the theorem
it was more about the decentralized
future and I co became a very big part
at least in the last year for the ones
who don't know me I build a few things
which were relevant in this space and
did a few things which you know kind of
a cost that thing by accident especially
the ICO that's why I feel obligated now
to you know come up with something
better proof on on what we had already
what we have so we think about how a
token work right tokens are a simple
smart contract with an account balance
in it and you simply ask the smart
contract like what is my balance and you
can send it a request to transfer your
balance and he will do that if you are
if you have to if you're allowed you
know if it comes from the right origin
so this is how tokens work which is also
for many people outside of the same
ecosystem in mystery by the way you know
like things are very mixed up here with
terminologies and what is a
cryptocurrency what is a token and and
how these things work
so yeah the basic with tokens and
aetherium you'll see 20 tokens there are
in smart contract and they have an
internal account balance list the great
thing with this is and that really what
led to the ICO boom is that this smart
contract can talk to other smart
contracts or another smart gonna con
talk to this token smart contract and
really this is on the end what made i
ciose a thing really because we had an
automated way of how we can receive
funds and allocate ownership in the same
process and that could be as simple as
one transaction and that really what led
people to make icos and in 2017 a lot of
projects who are not necessarily any
more decentralized let's say for better
for worse but it also made a lot of
people think now about toka economics
you know we have now academia token
engineering there we have a new field of
research and all of those things and we
also have a complete you know business
world of IC or food service agencies and
all of these things so a lot of things
came out of that simple two-step process
Isao smart contract plus token smart
contract so the problem with the I SEOs
is did you know a lot of people
collected a lot of money and they were
very happy after they collected the
money and after they thought okay what
exactly are the economy what is the
economic behind my IC o----
what is the token and the problem also
it led to that people got a lot of money
and it might change your mind of the
purpose of the project or even the
purpose in life right like your Lambos
rather than doing something useful yeah
and that's a problem so it cannot create
this imbalance between investors
especially in 2017 where everybody kind
of rushed in any random IC o---- it
created this imbalance of like investors
giving money it's just hoping to get on
the next big train and the project is
then funded and and really like you know
pivots a lot in doing away and like
sometimes maybe it's nowhere so how can
we make this better how can we make this
more fair you know how can we build this
in such a way that actually these things
can't happen or are less likely to
happen Vitalik had actually an
interesting proposal of the dike hole
where he combined a Dow you know a
voting system of people with an IC o----
and that's a very interesting idea and
when a solid sound sounded interesting
and especially it has this interesting
thing of like flowing funds over time
and you can increase the tab based on a
vote and you can stop the flow also
based on the vote and that was great
that was a great idea I actually came up
at the same time symbol with my concept
to before I really looked in detail in
this and it was this very similar idea
the problem of this is that people don't
vote as we have seen in the Dow and as
we have seen of other things you know
like people don't read either you know
they also don't vote even if you give
them a lot of good interfaces still you
know this hurdle of you know like doing
the action and if it's not really super
important then you get probably like you
ten percent of voters so how can we make
this better and I had this idea in my
head of how can this be improved over
time and so on and I came up with the
RICO concept which I later found out as
the record here and criminal
organizations act but you know the whole
world is not American so that's fine I
guess
well you know I think it's great because
we cause short
rico means tasty in spanish and
reversible you know you just add
something in front of the ico so so the
rico concept is basically exactly in the
basic the same thing that floods funds
flow over time like rather than based on
milestones and on any kind of voting
inside the community funds flat flow
over time and the most important thing
is everybody can choose at any point in
time if it doesn't believe in the
project anymore and i think this is
really the most crucial part of that
concept and why i think it will succeed
is because the power lies within
everybody themselves without that they
have to agree with you know that peers
or a bunch of strangers if like this is
a good idea now or not because agreement
you know that's like almost the most
difficult thing most of the time in a
very loose community
so in this idea everybody can really
just stop his committed funds from
flowing to the project this could be an
hour like that the project turned out
not to be as good as you thought or you
actually sent your funds and then you
started scrolling down the website and
realized oh that is a very different
thing than what I thought you know
especially in the formal times we kind
of had that situation probably a lot of
it so you always are in control of if
you really support the project and this
makes on the end the people really
believe in the project stay in the
project and everybody else you know can
leave early and somebody else can come
in and if you still believe in the
project so this this I this principle is
like based in three phases it can be
actually only one phase really but I put
it in three phases or in two phases
mainly in different stages so this is
the allocation phase the allocation face
is basically when people give funds to
the project or that basically they're
not giving it to the project yet they're
committing funds to the project and this
point in time you know let's say let's
say it's twenty days
pay so you can commit your funds but you
can always send back your tokens reverse
your commitment basically always get go
out with like zero risk except your gas
cost right risk and probably had to fill
out some kyc and upload some documents
which we hopefully solve of identity and
an automation to so we're back to the
one transaction participation so this
the allocation phase people participate
by sending or committing funds locking
them in a smart contract and then
there's the distribution phase and this
is the phase where the funds flow over
time to the actual project which you
know that the ICO and the good thing
here is there's time you know in time
solves most of time a lot of things and
it gets more clarity along the way and
it's a rather straightforward thing
because you know how a long time you
know how long it's like for example two
years you can really count with that as
we nicely can also count with the
Bitcoin issuance you know
can count the time flows in the same
manner so in inside the distribution
phase and this is the interesting part
you are able to reverse or your fund
funding new commitment so basically you
are able to withdraw the funds you
committed at any point in time and you
do this by simply sending back your
tokens and this can be as simple as dump
of any wallet where I sent my funds from
I can simply send my tokens whatever I
got back and I'm like you know stop
committing in the project the smart
contact then has to calculate of how
much time already passed how much of the
funds already are allocated to the
project itself and are with drawable by
the project and how much of the funds
you should get back and how much of the
tokens you should keep because obviously
if you waited in a period of two years
you waited one year then at least you
should keep half of your tokens because
capably
you get only half of your funds back and
at some point either these are the
native tokens of the project which have
some kind of functionality in a smart
contract system maybe they're you know
security terms in the future which is
like the big talk now or they are
swappable to the actual project which is
about to launch in the future we have
seen many times that people do a
blockchain and you know you basically
want to allocate like who has committed
how much it's kind of like an advanced
excel sheet you know next time sheet
when nobody even though the project
owner can mean you played on it so if
you look at it from the outside
perspective it's really just simple like
an allocation phase the distribution
phase and inside the distribution phase
is the possibility of withdraw and
there's also the possibility of other
people buying in so let's say you have a
million tokens reserved for the process
and only half get poured or let's say or
get bored and then like half of those
get returned during like one year or so
something there again for sale and
somebody else could buy them up
what cut what probably will happen is
that during the almost at the end of the
time people were all formal in you know
by whatever is left there the browser
gets a big chunk of money in the last
like minute or so that's something we
have to see obviously and how how I
approach this here is that this is a
model based on one token so this token
is purely your axis in your accounting
mechanism to see how much you have
committed and you could technically
transfer that commitment or you could
split that commitment and you could like
send any kind of part back of whatever
your tokens are and then keep only the
part which is which you sent back and
which is partial to that what is not
refundable and there's two ways of how
you can solve that either you create two
tokens where you say one is refundable
no and once you swap that you refund
that if you get a part of the tokens of
unrefined able tokens back or you can do
this that you actually lock a part of
your account balance inside the same
token and the advantage of this is that
you have only one token which if it's
not refundable it's actually also not
transferable so you would never end up
in an exchange if it would be
transferable and it works actually
technically with every existing wallet
the only problem is that these will not
tell you what is you locked and what is
your unlock balance and that's something
you could probably look up then on
another website and so on so the idea
here is that if some people really fund
that or other people didn't really fund
and some people have a part of the
balance locked another part of the
balance which you can move and obviously
if you try to transfer your log balance
it which is throw if not you can just
transfer your your log balance your your
normal balance so this is two ways you
can do it either through two tokens
which can be confusing for certain
project or you can do it to a lock
balance the log balance obviously only
works if this token is swappable at some
point then it's only transferable in the
case of if there's a swap event
happening
and until that you know you just keep it
all you never refund and you keep
yourself the option open and then you
have good technically transfer them
around so if you look at this in total
it kind of looks like a Tesla a semi
truck and so most of the project
probably will get a base funding and I
do a private sale which is not in that
process and the reason for that is you
have some sort of security and you're
not completely reliant on a fluctuating
part of money based on the formal and
fat in the crypto space at the same that
we have this allocation phase where
there's like zero risk because in this
moment you can always get out and then
there is the dispersion process and
that's for example is something which
can happen over two years time so
there's a long enough time which
probably makes cams very unlikely
because if you want to scam in two years
at least it takes a lot of time and you
might have have build it on the end what
you promised so that's even reversing
than scams and to building things in
otherwise it's also allow us projects
which might fail due to whatever reasons
that they fail naturally without
everybody like being left with nothing
so that's that's kind of like the whole
picture of how this can work and
obviously that's a very simple this is a
very simple simplification version you
can make all kind of iterations and all
kind of alterations how that could look
like and you know if you look into
current we see investing and it's rather
very similar the difference here is it's
automated and it also has the ownership
automated and the good thing is that
everybody can choose on its own and it
doesn't have to ask anybody and he
doesn't have to do anything besides you
know taking out his wallet and you know
sending his tokens back in the moment
when he stops believing that's the whole
project this is the whole idea which I
would like to see be adopted in this
space and what better process than doing
this you know as my own with my own
project
so I'm working right now and a fashion
lifestyle blockchain a basically
industry-specific blockchain and we want
to use exactly that model which is we
have to obviously get the allowance you
know from the regulator's if this is
okay but I think the benefit here is
that we are able to auto regulate on
chain and build a system which is safe
by design where people can actually
participate in something with less risk
than they have today rather than
creating perspectives you know and in
terms and agreements and stuff which
everybody just clicks away and not
smooth anyway and it doesn't really give
any kind of like investor security for
real right if people just invent invest
in bad things then they just invest in
bad things this gives you an option to
always choose again if there was a good
idea or not and I'm pretty confident
that this will work out and when we see
this work out once I'm pretty confident
also that the other project will adopt
that process if others adopt it and we
are moving towards a self-regulation in
our space I think which is extremely
important that we show look things can
be done in a better way and actually it
brings more safety than creating huge
liquid regulation froid frameworks and
you know even more lawyer costs and even
more slow processes because the whole
point with the blockchain and why I SEOs
are so successful is because it is easy
you know that's really the main point
that's all I have today for you so you
mentioned you worked on energy 20 so is
this another standard you're working so
what if you want to use this now maybe
if there's a standard that might help
yeah so basically the idea is that on
having a proposes as a standard yet we
were obviously in the process of when we
make our IC or our Rico we will like
build the smart contracts out test it
out over the course like shorter
specifications we use and once we know
that it really works and all the
math works well then maybe I propose it
as a sender's I mean I propose New
Year's Eve 20 and other standards send
us process are pretty slow and they take
take time and so on I think like a good
examples to show that it works you know
and then we can discuss about
standardizing things I mean yeah the
concept it's rather simple you know or
technically white paper also explaining
the the exact specification how you do
it but you know it's not the really
complicated idea so everybody can
probably just get cracking you know
building it himself or destined self so
do you think that it might change er the
life of the project because of like
people getting feared and just like
taking it out because the price goes
down or whatever so like it will be very
difficult for project to kind of if it
will be milestone based maybe but if
it's just like time based so I probably
it's not it's not obviously there can be
many iterations on that concept right
there can be my stone based but then you
have the tricky problem of voting or
Oracle or whoever you know decides
whatever my sin was reached or not I
think the the idea here is obviously if
there is a private set in front that you
gives you base funding which gives you
some kind of like basis that you are not
completely like without nothing at the
same time if you are a good project I
mean you know we have already brought
you in this space who basically took the
risk of keeping the ethers that for some
work really well for some life didn't
obviously based on the time when they
did it I think we will see also
fluctuation actually my gut feeling is
that probably the pot would be or around
2/3 fluctuating maybe there's a fat
moment where everything goes down but
then it can also bounce up again there
is a risk but I mean entrepreneurship is
always every skin gender and so and and
it brings this balance back between the
community and the project I think this
is very important and you can probably
even have like a soft cap of whatever
can be mean maybe like you know 20% of
whatever you gives immediately not
refundable I mean could be any kind of
alterations based on what security the
projects want on it and it's also based
on the the size of the project for
example if you
start a whole ecosystem like a
blockchain you know most of the time
these projects collect a lot of money
because they can be very large you know
I can grow to a huge ecosystem at some
point if it's just obviously you know I
want to build this app and I want to
collect here a million and then on the
end it will be worth like 10 at some
point it's a more risky model obviously
right thanks you think that's all the
time we have thank you for having these
join me in thanking Fabien one more time
you