Impact Delivery Agreements: a new protocol for investable bounties

Transcript

hi everyone I'm Raphael I'm the CEO of Alice here with my CTO over here and I'm here to talk to you about investable bounties so if you if you don't know Alice we're a social finance protocol that allows you to track exactly what impact your money makes and what I'm announcing today basically which is really exciting is vitu of our of our protocol so this is like world exclusive at EDC yeah alright so when it comes to web 3 funding

especially for public goods what we what we have is essentially a binary choice ready you have bounties on the one hand which are great because you can see exactly what your money is going to pay for but for the bounty developer it's not fantastic because well they basically don't have the money up front so they have to deliver something and then they get paid afterwards which is not great or you have grants and grants are great for the service provider for whoever's doing the work but as far as the grant maker is concerned they're just giving out a blank check so they don't really know whether something is going to be

built or not and you see this across all the I'm sure you recognize the the companies here bounties Network get coin for bounties but also meta cartel Moloch Dow they are very much working on on on a grants basis so this is where the impact delivery agreement comes in it's a new financial primitive that allows you to essentially take investment from work that you're going to do further down the line it's like future cash flow financing primitive the way that it works is whoever's doing the the work so a service provider for

example let's take an example it's somebody who's helping homeless people find a home and they they will make a certain amount of a certain number of promises about how many homeless people they're gonna help and they're gonna set the price that they're gonna get paid for each person that they do help so in exchange for creating the effectively delivery agreement they're gonna receive a certain number of payment rights which are that claim on the the future funding you move so then funders who are interested in seeing this happen they are going to fund the project the money's going to be held in escrow and they are going to receive the the promises so that the money there the funds there are only

going to be paid out when the actual goals the milestones the promises have been delivered now the key thing is that at this point the service provider doesn't have any money to actually pay for delivering the goals that he set out so he's gonna sell some payment rights to an investor so typically what the investor will do is they'll buy those payment rights at the discount let's say that I'm getting paid a hundred die for every homeless person I find a home for well if I want to make it interesting for an investor I'm gonna sell them for eighty died and then the investment an investor can get the upside which is then what happens is that when a validator verifies or the appointed

validator verifies that the the goals have been achieved the promises have been fulfilled it's actually the investors who can claim the funds instead of the service provider so that's the basic idea it's based on a new technical architecture it's a new token standard called the fluid balance token fluid balance tokens essentially have is a triple accounting procedure that allows you to check how much each token can can get so in terms of like what what's the potential learning from that fluid from that token how much has actually been withdrawn from escrow and how much is available to you withdrawn right now and what's interesting about them is

that they're semi fungible so though we're calling them fluid balance tokens because the reason why we call them fluid balance is that if you have somebody who has a token and who's already withdrawn what they're entitled to but somebody else has the same token or for the same project but hasn't yet withdrawn it if they if I were to transfer my tokens to that person the balances would automatically adjust and the the new balance would be recalculated so it's easier if I show you a demo so I'm gonna do that now this is the first DAP that we've built on on the new impact delivery agreement

protocol you can go and check it out at i dot alice dot SI what it allows you to do is create these projects so I'm not gonna fill it in because we don't have time but essentially what you're doing is you're doing your project name project description all of that is recorded in three box the key components here are that you're going to make a number of promises about stuff that you're going to achieve and you're going to put how much you're gonna get paid every time you achieve that promise every time you deliver that promise right so if I'm again if I'm saying that I'm gonna help a thousand homeless people find a home I'm gonna get paid $100 for each I'm gonna record that I'm

gonna nominate a validator I'm gonna set a project deadline as well so by when do I have to achieve those goals do I have to fulfill those promises and then I'm all set to go and I click deploy play on this it's on the rinkeby network there's some really serious social impact stuff on there there's also some less serious things there you can see how how people have been playing around with it so there's a penalty for Justin himself anyway it's fun so I'm gonna I'm gonna go here to a serious one this is a project to help so you can read what

it's all about it's a project to help women and girls in Uganda with digital literacy it's actually a project that's on the Maine Alice website that's being funded with v1 of the protocol so you could actually go and fund that right now this is obviously on the test net it's just replicated here but it's just to show you how it works so now I'm just I'm not the creator of this either I've just browsed I found a project that I'd like that I want to fund so what I can do is I can actually put money to it I want to see this change happen I want to help these girls these women get better digital literacy so I'm actually going to provide some money here I don't know the organization so I'm not prepared to

give them money to give them blank check and just for them to do whatever they want to do with it I want to actually make sure that that is going to be achieved so that money is going to be held in escrow as I said before it's not going to be paid straight away it's gonna be held in the projects funds as soon as that's mind this is rinkeby this is life so this is why it's taking a little bit of time to process there we go so now you can see that I funded a hundred and ninety five dollars we're using test tokens here so you can get more tokens if you want but I've basically helped completely fund this

now if I'm somebody else if I'm an investor not a funder I'm not really at this point I'm not really into the whole social impact thing I want to make some money and I believe that the the creator of this project is actually gonna deliver on these promises so I can see that it's fully funded but what I want to do really here is buy some payment rights so I want to see what the the deal is on the payment rights that the the funder is or the creator is giving me and I can see here that there's a market I'll show you how we do the market later there's a market for payment rights there are 500 payment rights that are for sale and they have a hundred percent

ROI which means that if all of the promises are achieved if all the promises are delivered I stand to make a hundred percent on my investment which is a pretty good deal it's a pretty good deal especially because I can see that this project hasn't achieved any goals yet there hasn't fulfilled any promises that's probably why the ROI is so high and actually with this account I've already bought some payment rights so you can see that I own five hundred and fifty payment rights right here and I'll explain this bit here of what's redeemed redeemable and potential at the moment potential everything is in this color which means I stand to make five hundred and fifty dollars on this but nothing has been achieved yet so now I'm just

gonna move to the Creator account so if I go to the Creator account now I can see that my project is fully funded for all of my promises which is awesome and I've already received investment as you saw from before so somebody has actually given me some money up front in exchange for the payment rights and I've used that money to go and train these girls and women up on digital literacy and I'm

ready to claim my first fulfilled promise which I'm gonna do now so I'm gonna submit that claim I'm just gonna put a code there we go let's get a mine perfect and while I wait for that to mine I'm going to switch to validator mode so the validator in this case is this account that's being confirmed and as the as the validator now if I go to the same screen

I'm gonna see that there's a claim that's ready to be processed right so I'm going to check the proof right now on this DAP you have to do it off chain so the the charity has sent me proof that they've held this help this lady with digital literacy I'm gonna review that if I'm satisfied that that's happened then I'm going to validate it and that's going to basically trigger all of the payment logic in here so wait for that to mine I'm gonna go back to my investor account because the investor is the one who's most interested in making their money

again for those who've just arrived this is on rinkeby so idle assess I connect to rinkeby and you can set up your own project your own impact delivery agreement your own investable bounty so here we are now I've invested in this Ida I can see that there's a claim that's been or a promise that's been fulfilled validated by validator and all those payment rights that I bought before and now starting to give me some money so I can see that I own five hundred fifty payment rights there's one out of forty promises that's been claimed so I can start redeeming the pro

rata of what's held in escrow so this project is fully funded again 2000 after 2000 has been funded and so I can redeem my my stuff but what's interesting to notice here on the on the little dashboard you can see that in blue here is the redeemable part so as I said the fluid balance tokens that we're using this new standard has a triple accounting or a triple accounting mechanism which shows you how much in total this can allow you to claim from an escrow account how much is redeemable right now and how much is being redeemed in the past so I'm gonna do that I'm gonna redeem it and then I'll do one

last step with for the Ida creator because there's a really fun way to update the market on the step so well that triggers they go and if i refresh that it's all it's all yellow so I've now got into my account that money from escrow and if I am the creator go back to the creator account here what's great is I'm starting now to have a track record of promises that I've achieved account

all right so I'm the creator you can see that I have a track record now of promises that I've achieved so hopefully I'm gonna give investors more confidence on my ability to deliver these promises and because I have a track record and also because my either is fully funded I'm thinking well first of all I can redeem my share of the money because I also still own some payment rights I haven't sold everything yet to the investors but I also think that offering a 50% discount on my on my payment rights is too high given that I've started dreaming this I'm gonna put slightly less I'm only going to put a 20% discount update the conditions

because that's a percentage they go Update market conditions that's going to mine there we go and once that goes through it's going to adjust the investment market so investors will get slightly less ROI when they buy the payment rights for this project so that's how the demo works as I said this is on test net so I'd be really great if you're going to test the adapt you know give us feedback we're doing

integrations with Claro's for arbitration and good gnosis have been a real inspiration and have given us a grant to develop this and here's all the all the contact details you can go there's a like a really extensive documentation on github as well on fluid balance tokens and all the rest so thank you very much [Applause] all right one question about the order our payment rights being sold first

before the project is found no so you create the project and immediately be either creator automatically receives all of the initial payment rights so if I would never sell my payment rights I would get anything that's held in escrow as I achieved my goals I would have access to all of that escrowed money but and the way we've implemented here is for an investor market right so I can sell my payment rights at the discount so I can get money upfront but equally if I don't need the money upfront I could potentially drop the payment rights on subcontractors so they get their share of the money if as and when outcomes are achieved so it's like a really flexible tool you can do whatever you want with the with the payment

rights and you get them as soon as you create the project as soon as you create the Ida okay and in in the in the charity space language is important so investors yeah is a tricky word because you you have the impression someone's making money out of my charity so could you maybe change the word to risk finance there is they take away project risk and that's good for the charity for the donor yeah so this is a really flexible protocol anybody can build their own depths on this and use the language that they that they want anybody can set up their funding platform thank you guys [Applause]

outside if you have any questions just that