Why are Jag and Josh leaving now?
They’ve spent the last four years running, and funding, Vid. At this point, the company has no capital and a not-insignificant volume of outstanding debts. Rather than incurring more and more debt, both personally and for the company, they’ve decided it’s best to separate from the company, and settle the debts. Rather than shut the company down, which still has significant value, they’ve decided to switch to a DAO model.
The business needs new energy, networks, and ideas to move forward and scale beyond the point where Jag and Josh have brought it.
What happened with Seedrs?
After an incredibly strong opening day of the fundraise, the investments trailed off. The large number of pre-registered, interested investors failed to convert, and the impressive total they’d initially committed to… never appeared. As a result, we didn’t meet the minimum soft cap in a timely manner, and a majority of the investments came from our own community. We could accept the round, but we wouldn’t be able to deliver the full scale of what we were planning.
Seedrs will be sending formal comms, and taking down the fundraise from their site. Everyone who pledged investments will be reimbursed by Seedrs.
What is the process to turn Vid into a DAO?
The process will essentially be:
- A formal announcement
- Interested entrepreneurs and community investors will step forward, and assume leadership roles.
- Community members will take control of this process and implement it.
- Some team members will stay, if there’s community interest.
- Assets, IP, and the app itself will be handed over to the DAO .
- The community will lead and run Vid from that point forward.
What will happen with One wallet?
The One wallet concept is still alive, and can be developed. The designs will be handed over to DAO, as well as all relationships, groups and institutions we’d started discussions with. Capital would be required to build it, and it would be up to the DAO whether to continue with that project.
How can the community run the company?
The project will be community run, in that the voting system that comes with a DAO initiates voting rights to all token holders. Leading members can set structures in place for quick decision-making on issues, with token-holder votes to ensure timely response to critical and non-critical decisions. Decisions will need to be made, and details will need to be worked out, regarding servers and licenses… which is why we’ll need community members to step into the key decision-making roles.
What are the new crypto features?
We researched, and got feedback, on ideas around new crypto features, but these decision was they wouldn’t make sense for the app in its current state.
What team members will stay?
Veljko, Abbas and Stevan have expressed a desire to remain working for Vid. Bec will be happy to continue supporting and working for Vid, part-time, but because her residence visa is supported by her full-time role at Vid, she will need to find another full-time position elsewhere. Andy is very happy to remain as a consultant when needed, and to help with the transition, however he’s also going to have to find a full-time salary to support his family. Antek will be moving on, but he still believes in Vid, and will be available for historic questions to help with the transition. Other members will be happy to help out where needed, if the community decides to take over the DAO.
How long has the team been going on without payment?
Team members have accepted different levels of hardship, depending on their own financial situations, but team members have been taking a reduced or deferred salary for several months, or in some cases, longer.
Why don’t you talk to VCs? I bet they’d love to invest!
We already did, to a huge range of traditional tech and blockchain-focused VCs. Feedback from them has been provided in the article, but they didn’t believe at the level that we did. This doesn’t mean that the idea isn’t feasible, but it does mean that specific path wasn’t ready for us.
What will happen to the value of the token?
This news will likely come as a shock, and the market may react accordingly. New buyers and whales may buy VI as the DAO is considered and hopefully taken up. All the value of Vid now accrues to the token, whoever owns the token controls the DAO and therefore controls Vid. Jag, Josh and Antek have all pledged to hand over their significant volume of VI tokens to the DAO. All that is needed is organization and leadership.
Any other info for us?
The social-crypto space is still undeveloped. The market is still there, available for the taking. It might still be too early, the market might be too small, but it also could be the right time for this first-to-market product. We still hope Vid could work, we’re just no longer in a financial position to carry the product forward. There is an opportunity for entrepreneurial community members to really take this, and lead it forward. They’d be handed an app that works, with daily users, source code, the founders’ and CTO’s remaining token holdings, an active community, and a live and listed token. It seems like an opportunity too good to turn down, if the right leaders are ready for it.
The monthly server costs are under $8k, so the DAO would need to provide that level of capital to continue the project, as many of the team members are willing to work for deferred payments or token allocations.
- What is a DAO? https://cointelegraph.com/ethereum-for-beginners/what-is-dao
- Lead DAO companies: https://defiprime.com/dao