Powering a new generation of decentralized Uber’s and Airbnb’s

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The  district0x  Network  describes  itself  as  “a  collective  of decentralized marketplaces and communities (districts) powered by Ethereum, Aragon, and IPFS.”

Districts will leverage an open source framework to allow users to post listings, filter and search through listings, rank peers and amass reputation, send invoices and collect payments.

In simple terms, district0x’s ambitious but demanding goal is to create a platform to power a new generation of decentralized Ubers and Airbnb's.

Token Sale

The  district0x  Genesis  Contract  will  mint  a  total  of 1,000,000,000  district0x  Network  Tokens  (DNT).  Thereafter, DNT  will  be  minted  in  perpetuity  exclusively  via  the  district creation module.

The district creation process mints 1 DNT for every new district created on the network. Tokens minted by this mechanism may never be un-staked or transferred.

The  DNT  minted  by  the  district0x  Genesis  Contract  will  be distributed across a series of up to three potential contribution periods. Contribution Period v0.1 (the subject of this report) is currently scheduled to begin on July 18th with a minimum total contribution target of $2M. Contribution Period v0.1 will run for a period of 14 days, or in the event that the soft cap of $10M is reached, until 48 hours after the soft cap has been reached.

A total  of  600,000,000  DNT  will  be  divided  and  distributed across  all  participants.  Within  14  days  of  the  close  of Contribution Period v0.1, participants will receive an allocation proportional  to  the  amount  they  contribute  out  of  the  total amount  contributed.  The  district0x  Genesis  Contract  will allocate the remaining minted DNT as follows:

●140,000,000  =  Reserved  for  potential  Contribution  Period v0.2

●40,000,000 = Reserved for potential Contribution Period v0.3

●200,000,000 = Distributed to Founders

●15,000,000 = Distributed to Advisors

●5,000,000 = Distributed to Early Contributors

Distribution of these funds depends on the total amount raised. There are three main scenarios for how funds will be distributed across development, operations, legal, and a district0x fund as shown below. The goal of the district0x fund is to accelerate the growth of the network by funding “new projects on the district0x Network and the creation of new auxiliary modules that enhance the functionality and utility of the district0x Project.”

It’s worth noting that founders, advisors, and early contributors receive just over a third of the initial DNT distribution, which is quite substantial. However, these funds are subject to distinct vesting schedules. Founder and advisor tokens are allocated over  a  24-month  vesting  period,  with  a  6-month  cliff.  Early contributor tokens are allocated over a 6-month vesting period, with a 3-month cliff.

Commercial Strategy & Roadmap

The  success  of  district0x  relies  on  network  effects  and  the success of individual districts on the platform. In order to use districts users must purchase and stake (put into escrow) DNT. By staking their DNT users become shareholders of the district and  receive  voting  shares  in  the  district’s  Aragon  entity  (a platform for creating Decentralized Autonomous Organizations). This entity is used to determine everything about the district, from what it actually does to how it distributes profits.

Because  DNT  is  a  token  for  the  entire  network,  it  is  not necessary for token holders to participate in profitable districts to benefit from their success. The value of any holder’s DNT will still increase as long as the total use of the network increases.

This is still a bit of an assumption, as it is entirely speculative as to whether projects will use the network. In fact there is a risk that the strongest projects and teams may self-select to build their Dapps independently of the district0x network.  So far the only district running on the platform is Ethlance, a decentralized freelance job market, which has been active on the Ethereum network since January 2017. ENS Bazaar and Meme Factory (inspired by Simon de la Rouviere of ConsenSys) are scheduled to be the second and third districts, respectively.

Management

The district0x management team has significant experience in the  blockchain  space  and  is  supported  by  BoostVC,  Fintech Blockchain Group, and CoinFund.

Matus  Lestan,  Co-Founder,  Lead  Developer  -  lifelong developer with a strong passion for decentralization. Previously a  freelance  developer  for  8  years,  Matus  is  now  known  for pushing  the  Clojure-Ethereum  ecosystem  forward  via  many open source contributions.

Joe  Urgo,  Co-Founder,  Operations  -  Founder/CEO  at Sourcerers.io.  Previously  Joe  worked  as  an  Operations Manager  at  Coinbase,  a  Derivatives Trader  at Three Arrows Capital, and a Professional Poker Player.

Alexander  Khoriaty,  Project  Manager  -  Founder/COO  at Sourcerers.io. Alexander has a determination for finding user experiences  that  can  propel  revolutionary  and  disruptive technology  to  the  mass  market.  After  studying  physics  and philosophy  at  the  University  of  Michigan, Alexander  spent  2 years  working  at  Coinbase  building  out  Quality  Assurance program and triage processes.

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