A new project called Fair Launch Capital Claims offers founders a new way to finance crypto networks.
According to a Tweet August 26th, Fair Launch Capital (FLC), The project provides founders with access to capital to fund their cryptocurrency networks and projects.
On a website so simple that Curve’s DOS interface looks like 4K game graphics, FLC said it is not a venture capital fund and will provide an “unconditional grant” to cover the initial costs of testing and starting a project..
“”The main obstacle for founders looking to use an FL is the high cost of a code audit“, explained the Twitter account of the new project. “This forces them to submit high-risk contracts or submit nothing. We are here to change that.”
Some high-risk, token and non-token DeFi projects have quickly attracted large amounts of capital even though they started without proper code review.. One of the most notorious examples of this is that of Yam, which stored nearly 500 million assets before the token’s price fell within days of its inception. The flaw responsible for the downfall, which may have been identified through proper inspection, has permanently banned cryptocurrencies valued at an estimated $ 750,000.
The core team behind FLC are crypto investors Gavin McDermott and Joe Gerber from IDEO CoLab Ventures and former Coinbase employee Reuben Bramanathan intend to offer an alternative to this practice with a community approach to DeFi projects. IDEO CoLab Ventures has supported a number of cryptocurrency launches, including the blockchain accelerator program Startup Studio.
FLC says it “enables founders to create new crypto networks that are earned, owned and managed by their community from the start”.. This would enable the participants to avoid the “boom rush” common in many DeFi projects without pre-sale, pre-dismantling or tokenization.
Once launched, the project community would hold a governance vote to decide whether the grant money received should be passed on to the next founders who want to try a fair start. FLC announced that the core team will soon be selecting a single project for the first experiment with this new model..
“The FL is young and we believe that high-yield farming and deleveraging are early mechanisms that will evolve and improve.“We hope that our approach enables a new generation of networks that can start more symbiotic and economical.”