How does this Blockchain powered CrowdFunding Script work?
Everything works in the same manner like how a normal Crowd Funding platform works, but just for how the funding is done. When an investor has decided to fund a project, instead of directly paying money > He first purchases equivalent amount of your ICO Tokens. Then he Transfers those tokens to the project he wants to fund ( all this happens seamlessly in a fraction of a second ). Next, the Entrepreneurs who received the Tokens can either hold the tokens or liquidate them to convert them to Fiat Money. They will obviously do the later. Once they raise a request to convert, either you can buy them back and give money to the Entrepreneurs -or- sell it to other investors who want to purchase tokens to funding other projects.
Remember: Each time a transaction happens ie. Tokens get transferred from one person to other, a Smart Contract is getting executed. And each time your Smart Contract gets executed > Certain amount of ETH needs to be paid for Gas. And all this ETH gets transferred to your Wallet.
And What else Happens? 3 remarkable things happen:
Your ICO Tokens are being bought by people for real money ie. your Tokens are getting real money value and popularity. Not only are people paying Money and buying your tokens, but they are transferring it to others and they are Selling it and others are again buying it. Which means your ICO Tokens are being transacted actively like any other mainstream cryptocurrency.
You are the owner of the tokens. So you are holding a huge asset. Say for example you have created 500 Million Tokens and each token is valued at $1. People have started buying your tokens to fund projects. It means that the remaining tokens you are holding have gained the respective real money value! You are suddenly sitting on a gold mine!
Since Real People are buying and transacting your Tokens for real money > You can list the remaining Tokens in other Exchanges and MarketCap sites like CoinMarketCap etc. Traders will start seeing a real business model behind your tokens and start buying your tokens.
How do you Make Money using this Blockchain powered CrowdFunding Software?
For better understanding: We recommend you to first read the details in the above para, and then read these money making points:
Every time a transaction happens, your Smart Contract gets executed. Every time your Smart Contract gets executed, the gas fee is collected from the person initiating the transaction. This Fee is paid to your wallet as ETHER.
For promoting a listing to be a ‘Featured listing’, you can collect money from listing owners.
For each amount of funding received, you can collect a percentage of the fee as the platform fee.