I’m not sure if this is the right topic but here goes. If you have an existing company and want to dedicate its resources to building an app on the safe network, what kind of incentives are there for a potential investor?
I ask this question because I have a company and I’m interested in working on safe apps. I have an investor interested in funding some development time but am unsure on how to describe it relative to a traditional company, even though the value of the safecoin is understood as a risk deemed acceptable.
Yeah in a nutshell. I’m trying to figure out how to justify the initial cost of development given that the SAFE system isn’t live yet. E.g: If investor invests $1000 for development of app X over a 2-month period how will they be able to get that money back in the short term / long term.
After posting this I did some research on the crowd sale stuff which has occured recently. I’m not sure if this is the best way to raise funds for apps or not in general when it comes to safe apps, even though it does seem like the right way in the future. In my case I have one investor willing to invest the total required in ‘real’ currency to develop an app but I’m unsure on how to describe how returns work so that I can pay them back eventually for their investment.
There are discussions around that might help. With SAFEnetwork the cryptocurrency is built in, making it easy and free (no transaction fees) to charge users for a service provided by an App, receive donations etc. Including micropayments because 1 Safecoin currently equates to < $.02.
There is also a proposal to eliminate the need for these charges, by having the network automatically reward developers of popular apps in a similar way to farmers. This is not finalised or certain though.
@et4te I’d say I hope you thought about it a lot before considering an “investor” whatever they’re offering you it better be something real, and certainly more than just 1000 dollars for 2 months. Also, I wouldn’t be wise to sell an idea short quickly. I want to convince you not to underestimate the value of the safe network and also the cost of taking on ‘investors’ just for some money.
You could demonstrate your ability to deliver a software and issue a crowd-sale to fund your development of it, and that way you can preserve the creative control to yourself, and also along the way engage a community of people to gauge public opinion. I think its the best way going forward. And the App developer coins can sustain the developer and if extraordinary returns exist, distributing them to the crowds.
Regarding aligning with Safe, building an application with the Safe Network as its backbone would suffice to say you’re aligned with the safe network, hopefully your app is open source, I guess… and that would be parallel to the core development, and I think make a more trustworthy app, (makes it possible to make sure you’re not calling home on people using the app)
The question to me is almost like, how does a store align itself with bitcoin? It can just accept bitcoin, and to me that’s self reinforcing.
@dallyshalla I agree with you but in the beginning ‘just some money’ is required in order to be able to do the work in the first place, mainly due to my own personal circumstances (I am a resident of the Caribbean). Its not such a big deal for me to make that much profit from development, I am more concerned about the ability to do so. I certainly do not underestimate the value of the SAFE network and in fact I am definitely going to write apps for SAFE but a little money to begin development with is just a practical necessity. I don’t really need as much as a crowd sale may raise for example, just enough to survive and code.
I’m actively working now on a few ideas but still deciding which to go with. Whichever I start developing I am of course planning to release as open source. Thanks for your comments though it motivates me to try crowd funding in the future.
@happybeing Thanks happybeing, after doing a lot more reading I have come to understand a bit more about its model so I think I can coherently piece it together now. Sometimes I ask questions first before thinking about it so I think in retrospect the initial question is a little ambiguous / naive.
Questions are welcome here. I’m glad you’re finding your feet and feel free to request more help as you need it. Good luck, and I look forward you hearing how you get on too in due course.
, that App rewards provide an alternative revenue model to the ones I described.
think they can work beautifully together