A part of the recent collapse in ETH’s price is attributed to ICO projects selling of the ETH they raised. As ICOs are not profitable, they need to constantly sell ETH to stay in business. This is not a realistic model; ICO projects need to start clarifying how they intend to make money to foot their bills.
We’ve come across a project that seems to be trying to build a business model, but it seems it too is holding back and stemming to keep a portion of its services free, which is understandable because they are up against a multitude of projects that keep all their services free—which is ridiculous.
Charging for at least a portion of services is still a good start.
An ICO with a Business Model
JUR is creating a protocol for decentralized dispute resolution. It provides a substitute to traditional arbitration by creating technology that allows people to lock-in agreements through smart contracts called Smart Legal Agreements. These smart contracts reflect the agreement and hold funds, and will only release the funds once the release terms are reached. In case a problem surfaces, the funds won’t remain locked away in the smart contract forever as JUR’s jury system, whose jurors are called Oracles, will see the agreement terms to decide on a resolution.
Instead of making this service absolutely free, JUR will give users 3 free agreements per month, and users who want to exceed this will need to pay, albeit a small fee. This protocol is designed for voluminous usage and the fees are meant to accumulate once usage reaches a large scale.
Building an Income
Placing all eggs in one basket isn’t wise. JUR’s income isn’t based on just fees from Agreement usage.
– JUR ICO will offer tools that can build formats of Smart Legal Agreements. Experts can use these to provide Agreements as an easily available product that can be bought in the JUR marketplace. This marketplace will give JUR a passive income as there’ll be a small fee attached to the sales.
– JUR ICO is developing a new technological solution in the legal industry. This is a valuable development and companies will have the opportunity to access this technology by paying for an API subscription.
– JUR ICO will serve a great purpose in markets that involve escrows. It will not force users to make escrow in its native token, though, deposits in native tokens will waive fees. People will have the opportunity to make deposits in stable coins, thereby dodging volatility. There’ll be a small price for this benefit.
Our View of Jur ICO
JUR is building multiple income stream streams but it still manages to keep its Core Functionality accessible to people free of charge. This allows it to get the interest from masses while being able to charge fees to heavy users, companies who want easy access to the technology, or individuals and companies who want escrows with deposits that face low volatility.
It’s about time that we look at ICOs as a means to fund a business. There is no point in providing investments to a company that does not aim to ever build a real profitable cycle. A criticism given to tokens is that they are not backed by an intrinsic value, and it is true that most of them are not. We already have established cryptocurrencies whose sole purpose is to be a currency, so tokens should maintain a value through the startup’s profits.
There’s a lot of innovation in the blockchain industry but JUR is taking things on the proper path: innovation is only worth funding if it builds into a sustainable enterprise. JUR will be able to support itself as it has its own income streams.