Jury.Online: ICORating Review
Jury.Online positions itself as a platform for making deals and transactions, on the basis of which an ICO platform will also be launched. This diversification reduces the risks related to the future of ICOs in general. On the other hand, staging ICOs is likely to be more of a sideline for Jury.Online compared to its general transaction platform.
The project team is sufficiently technically competent; the developers’ experience is relevant to the goals they have set. The team lacks financial, legal and ICO experts however; they will have to solve this by using third-party contractors.
The token economy itself is competently built and thought out; if the service proves popular and Jury.Online able to fulfill its obligations, the token’s price could rise due to infrastructural demand.
Jury.Online positions itself as a platform for concluding transactions, on the basis of which an ICO platform will also be built.
The basic platform will facilitate transactions that, in the event of a claim, are arbitrated by a group of independent expert judges who can pronounce a verdict on the transaction in favor of one of the parties. The ICO platform will provide phased control over spending of funds via smart contract based on the Ethereum blockchain.
Jury.Online is launching its own utility token, JOT, for use in transactions on the platform. JOT is the local currency for the platform, offering the ability to pay for an ICO, pay for arbitrators and for internal services.
The Jury.Online team have prepared an in-depth Legal Memorandum and Terms and Conditions together with an independent legal advisor.
Jury.Online offers a set of services intended to be implemented consistently. These services will be available in parallel with the launch of the initial three ICO projects which planned for the platform. The key services offered by Jury.Online are as follows:
- Staging of ICOs
- Creation of smart contracts for the use of funding raised during ICOs
- A jury service for resolving disputes
- Implementation of additional paid services.
We will describe the ICO service first. With the development of the market, ICOs have evolved from being relatively cheap sources of finance to expensive, complex procedures. Not every start-up can afford a successful ICO.
Jury.Online intends to help standardize the ICO process and to provide savings as a result. It is assumed that an ICO on the Jury.Online will enable non-professionals to use crowdfunding to achieve their goals.
The Jury.Online team will require projects to prepare standard documentation describing the ICO process, the need for financing, ICO goals, project objectives, a business plan and a project roadmap. The team plans to select viable projects both independently and with the help of experts from the crypto industry, thereby contributing to risk reduction for unskilled investors. In addition, Jury.Online puts its reputation on the line to help avoid risks of fraud.
To enable this the team is proposing the use of smart contract for the disbursement of funding received from ICOs. Normally, funds raised during an ICO will be divided into portions that will be gradually released in accordance with the linear roadmap of the project. Project teams determine targets and means of documenting when they achieve a new portion of the funds. In addition, the team is testing a protocol for applying non-linear roadmaps.
In fact, the founders are seeking to create an environment/ecosystem where three independent parties can interact - a project, an investor and expert arbitrators. By default, all parties have an interest in making the transactions successful but in the case of any problems, the platform provides an effective tool for resolution - that of independent and expert arbitration.
The basic service offered by Jury.Online is a dispute resolution algorithm implemented via a smart contract, which is the the Jury.Online team’s know-how.
Jury.Online offers two related services - the safe conduct of transactions via use of collateral for the conclusion of a smart contract in blockchain, and an option for resolving conflict situations. At the same time, only logs for the contract and the agreed rules for arbitration are stored on blockchain; the jury’s tasks are implemented on the platform. The developers plan to provide these services with an appropriately wide and detailed functionality.
All transactions will be recorded in a smart contract. Essential conditions for the smart contract are:
- Identification of counterparties.
- A subject of the transaction, as well as links to relevant documentation and attached files.
- Time of commencement of the transaction, execution period and time allotted for acceptance and terms of payment of court costs.
- Deposits from counterparties and collateral for dispute resolution.
- The type of dispute resolution, for example via judges determined by random selection from a pool.
- Identification data for other smart contracts used in the protocol: Rater, the selector responsible for choosing a judge based on random number generator (RNG).
In terms of how it has worked out the blockchain architecture of the smart contract and the algorithm for the functioning of the infrastructure, the project’s technical aspect is highly organized and relevant to the goals set. It has a well-formed service infrastructure. Nevertheless, in the process of development of the service aspect, the project team will have to go through a lengthy procedure for eliminating initial technical glitches; work on marketing the pool of ICO projects and the pool of investors is also inevitable.
The use of ICOs became extremely popular in the start-up investment market in 2017. According to ICOdata, $5 billion was attracted in 2017. Although most of the funding was attracted during the period of May to October, November was the most active month - new projects received more than $900 million. Despite a degree of decline during the Christmas holidays, the market is currently in the growth phase.
According to Coinmarketcap, the capitalization of the digital currency market as of January 27 is $553 billion.
Thus the service industry for the ICO market is currently quite attractive for projects such as Jury.Online. The ICO market also has obvious drawbacks requiring solutions, such as the lack of control on the part of the investor (this is what the project service is aiming to remedy).
Estimating the magnitude of the potential market for Jury.Online, it should be borne in mind that the bulk of ICO funding went to just a few projects in 2017. For example, the five largest ICOs attracted almost $930 million, almost 20% of the market:
- Fillecoin (decentralized data storage) - $257 million
- Tezos (infrastructure) - $218 million
- EOS (infrastructure) - $185 million
- Bancor (finance) - $159 million
- Status - $108 million
At the same time, the amounts are not as large as for the real economy. Small ICOs experiencing problems with platform, infrastructure and primary capital for entering the market are up to 80% quantitatively and up to 40% in terms of market value. As a result there is an overall market potential for Jury.Online of up to $2 billion in 2018 if market volume is maintained at last year's level.
It is obvious that in order to compete in a $2 billion market, the Jury.Online team will require significant marketing efforts. Fortunately the Jury.Online project has an interesting mechanism for protecting interests of investors.
Jury.Online’s pricing policy is built as follows:
- For the first 10 projects, collection rate is 1% in ETH or 0.5% in JOT.
- 11-20 projects: collection in ETH - 2%, collection in JOT - 0,5%.
- 21-40 projects: collection in ETH - 3%, collection in JOT - 0,5%.
- 41-60 projects: collection in ETH - 4%, collection in JOT - 0,5%.
- 61-80 projects: collection in ETH - 5%, collection in JOT - 0,5%.
- 81-100 projects: collection in ETH - 6%, collection in JOT - 0,5%.
- 100+ projects: collection in ETH - 7%, collection in JOT - 0.5%.
Information about the team of developers is available on the main project site page. In general, the developers’ experience is relevant to the goals set.
Alexander Dmitrievich Shevtsov - Founder and Main Developer. A mathematician with a background in abstract and theoretical fields of mathematics, he has been engaged in cryptography, and is author of a number of serious scientific developments, "Advanced Encryption Standard," "Hash Algorithms." A blockchain developer and enthusiast, he works with smart contracts based on Ethereum.
Konstantin Kudryavtsev - CTO of the project. Previously engaged in the development of fault-tolerant, highly loaded information systems. Has worked for large banks such as UBS, Alfabank, Privatbank. Has experience of business development as CEO since 2008. Developing a number of his own projects.
Valeriy Strechen - Marketing Director. Specialist in sales, marketing and PR with more than 8 years of experience. The latest relevant achievements include work as head of media for InStat Sports Co.
Nikolay Prudnikov - Business Development Officer. Has worked in the market more than 10 years and acted as a founder or CEO in a number of his own media projects; has experience of successful business development at Krypton Capital, InStat Sports Co.
Igor Lavrenov - DevOps. Has been involved into IT industry for more than 5 years ago, beginning his professional way from support and development network infrastructure, backend core services & deployment auto-testing and turning it into the skills in deployment apps across various environments, bug tracking, monitoring of systems, research and development.
The founders are a team of competent specialists in the field of blockchain. There are also marketing, PR and business development experts involved in the project. In general, the team is quite strong and and is a definite advantage to this startup.
JOT is an internal project token. As part of the basic functionality, it will be used to pay dispute settlement fees on the Jury.Online platform. The volume of these fees will be fixed and distributed in a certain proportion between the arbitrators and the platform. After the project reaches its planned capacity, Jury.Online plans to charge 20% of fees as remuneration; 80% will be for the arbitrators who participated in the resolution of the dispute. Deals on the platform will be denominated in cryptocurrency; JOT tokens will not be required for their implementation.
Half of the collected tokens will be burned.
As part of the concept of the responsible staging of ICOs, JOT tokens will be used to pay for Juri.Online services along with ETH. The team aims to motivate users to pay in JOT, offering a flat rate: commission in JOT will always be 0.5% of the amount of funds raised, while in ETH it will grow up to 7.0% as the platform's popularity also grows. Clearly, if Jury.Online is successful as a platform for ICOs, all services will be eventually be paid for in JOT tokens.
In the long term the project team also states that JOT will be used for additional services:
- Evaluation of official project documentation
- Premium project selection
- Newsletter distribution to registered investors
- Third-party evaluation by Jury.Online partners
- Articles and advertising via selected media partners of Jury.Online
However, the terms of implementation for these plans and their pricing are not provided.
Blockchain and cryptocurrency are well integrated into the project, especially in the basic functionality which assumes that settlements between parties will be in cryptocurrencies. This has its risks, which we will consider in the relevant section; however it also shows the advantages of blockchain. At the same time, it is a rhetorical question whether the project needs its own token. The functionality of the token could replace ETH. However, as payment for platform services in JOT involves a number of advantages for customers, and given that some of the tokens will be burned, the asset may be interesting to a crypto investor.
We have indicated above that the asset may be of interest to crypto-investors. The team subsidizes the use of JOT tokens from its margins. This is achieved by a discount for payment for ICOs and the burning of half of the tokens collected as payment for the dispute resolution service.
We will analyze separately the commission charged by Jury.Online and their impact on the future value of the token.
A) Commission for the dispute resolution
This will be up to 20% of total remuneration paid for arbitration. Jury.Online plans to incinerate half of the reward received in JOT tokens.
In this context, it is important that the reward will be nominated in absolute figures in fiat and that the number of JOT tokens will decrease. Given the divisibility of the JOT token and in conditions of a reduction in their number in free circulation, if demand is static, the value of the token should increase.
However, this effect will be noticeable only if Jury.Online’s services are in demand. Despite the fact that the valuation of the market is large, competition is also significant.
B) Commission for ICOs
The team does not specify whether it plans to burn tokens received in the form of commission for ICOs. This is important, since otherwise token demand from payers can be compensated by Jury.Online itself, which could sell the revenue in JOT to finance its own expenses.
According to the roadmap, the team plans to launch an alpha web version in the spring of 2018 and a mobile version of the application in the summer. In parallel, the technical aspects of the ICO platform will be developed. Thus, theoretically, utility demand for JOT tokens could arise in Q2-Q3. It is likely that between the launch and the appearance of clients, a significant marketing campaign will be launched to attract users to the platform. As a result, utility demand will increase over several months.
In general, the token economy is thought out relatively well. It is important that users will not require tokens for the basic service but they will be needed only for payment. This will not repel users from the platform. It is also important that the team both gives users a choice and monetarily stimulates the use of JOT.