Dogezer Rating Review
|Start ICO||15 Feb 2018|
|End ICO||08 Mar 2018|
We assign the Dogezer project a “Stable+” rating.
Dogezer is a service for entrepreneurs that enables launching various projects (initially in the IT sphere) and collaborating on them, attracting all the necessary specialists within one platform. The alpha version enables assigning rights for each participant working on a particular project to a share of the future financial result.
The project’s technical aspect is its strongest: the functionality of the platform unites many existing services. A full version of Dogezer will be released at the end of 2018, but most of the functions are already implemented in the alpha version. Working at the junction of several market segments, the project is practically devoid of competitors; there is no other universal platform with such a set of functions. The market review indicates a favorable market environment for Dogezer.
The deflationary model for the DGZ token and a small team share of only 0.5% with a three-year vesting suggest constant token growth is possible. The project has a competent marketing strategy and a financial model with scenario and sensitivity analyses. Source codes for smart contracts for all stages of the ICO are available; Bloqchain Science has audited these. The founders are actively working with the community - the project is getting noticed.
Dogezer is designed to solve a number of problems for both entrepreneurs and hired freelancers. For entrepreneurs it offers the opportunity to make decisions together with a team of direct developers without compromising to the interests of outside investors who are not engaged in the project in any way. The process of attracting investment to launch a start-up is traditionally very difficult; using Dogezer, new projects will be able to start creating their infrastructure without significant financial injections at the initial stage.
For employees this is an opportunity for self-realization, creative and professional growth in completely different directions, as employees often face "a glass ceiling" in their current positions and according to the developers, it will always be possible to find projects interested in attracting qualified specialists on favorable terms using this service. Dogezer also introduces mechanisms within its platform for fair and timely evaluation and payment for work done. Specialists will be able to assess the integrity of the founders of particular start-ups, and entrepreneurs in turn will be able to assess employees.
Dogezer also offers itself as a service for resolving work disputes and conflicts within the platform: Voting rights for all participants on certain issues are built in. This blockchain project is intended to replace the functions of several existing tools: GitHub, Atlassian Jira, Slack, Google Docs and cloud services. In addition, it will be possible to stage ICOs on the platform.
Thus Dogezer is a crowdfunding platform with functionalities for project management, user interaction, work with documentation, cloud services and other functions that can be offered and developed by users within the platform.
The "Dogezer" Limited Liability Company was registered on December 27, 2017 by the Interdistrict Inspectorate of Federal Tax Service of Russia No. 15 for Nizhny Novgorod Region at the address: Nizhny Novgorod Region, Kstovsky District, Afonino Village, Kazanskoye highway, 25 p. 2 office 208. Open sources have Kozlov Alexander Igorevich listed as the founder. There is also a second legal entity, DOGEZER LTD, registered on the day of the ITO - February 15, 2018.
First of all, the ITO is being staged with the purpose of financing further development, as well as for promotion. The token has utility functions: future authors of various projects within the framework of the platform will acquire it to gain access to premium functions, as well as for the use of standard functions at reduced prices.
Token distribution: Founders – 0.5%, bounty campaign – 1.5%, for sale – 98%. Additional issue of tokens under the terms of the white paper is not provided; the founders do not allow such a possibility. Unsold tokens will be burned.
Round 1: Pre-ITO (closed on 30/09/2017)
Price: 0.002 ETH per 1 PreDGZ token
Bonuses: 5% on purchases over 50 ETH, 10% on purchases over 100 ETH
Total supply: 2,000,000 PreDGZ
Total demand (sales): 20,699,057 PreDGZ = 361 ETH
Accepted currencies: ETH only
During the pre-ITO investors purchased PreDGZ tokens, which can be exchanged for DGZ tokens at the rate of 9.14285714 DGZ = 1 PreDGZ during the public ITO. Initially, conditions for the exchange of pre-tokens for tokens were calculated by a formula based on the ETH/USD rate during the public sale. However, at the current time when the rate is fixed at $1600, conditions for the exchange of preDGZ on DGZ are fixed. The founders hedge currency risk that way: they protect the participants of the autumn PreITO from the growth of ETH above the mark of $350 and try to level the entire growth from this mark by giving them more DGZ tokens.
Round 2: Private Whitelist Sale (closed on 15/02/2018)
Price: 0.8 USD = 1 DGZ
Bonuses: 10% on purchases over 100 ETH
Maximum Number of Participants: 120
Total supply: 5,000,000 DGZ
Total demand (sales): 1,026,500 DGZ = 491 ETH
Minimum Buying Transaction: 25 ETH
Accepted currencies: ETH only
Round 3: Public sale
Soft Cap: $1m (including funds raised during the PreITO and Private Sale)
Hard Cap: $100m
Price: 1 USD = 1 DGZ
Bonuses: 10% in the first week, 5% in the second week. Additional bonuses: 5% for a purchase of more than 50 ETH, 10% for a purchase of more than 100 ETH.
Minimum Buying Transaction: 1 DGZ
Maximum Buying Transaction: -
Accepted currencies: BTC, ETH, PreDGZ
Funding allocation: Depending on the volume attracted and which of three scenarios is implemented, the spend on various items is adjusted: in a "realistic" scenario, legal service takes 5%, development and support 50%, servers and infrastructure 10%, marketing 35%. The higher the volume attracted, the greater the volume directed to the promotion of the product.
Vesting: Founders’ tokens vested over 3 years with 1-year cliff
Tokens Issue: 01/04/2018
Due to the high market volatility of cryptocurrency and ETH in particular, the Dogezer team decided to finance the ETH/USD rate for ICO purposes at the level of 1 ETH = 1600 USD. This course is valid for both Private Sale and Public Sale.
To participate in the Public Sale, a simple registration process is required, specifying an email address and a wallet. For participants in the Private Sale, it was necessary to pass a special registration selection for the whitelist, providing documentation using the principle of KYC (Know Your Client. The same principle is used for the PreITO and Public Sale for transactions over $10,000.
Legal Disclaimers indicate that citizens of states (territories) where investing in cryptocurrencies and ICOs are not prohibited can participate in the ITO. There are no restrictions on specific jurisdictions.
Information on the attraction of investment funds or their share is not available.
According to the founders, escrow was originally planned but then it was decided to abandon the idea. Also, multisig-wallets are not used although their use is not excluded in the future.
Dogezer has the ambitious goal of creating a universal platform within which it will be possible to look for work/hire new employees, promising them a share in a company's future financial result (or actually in the equity), to stage an ICO, and to implement development with support for multiple platform services which are intended to replace existing tools such as Atlassian Jira, Upwork, Slack, GitHub, Google Docs, Google Drive, OneDrive and others. Python and MySQL provide the main part of the platform, which consists of several blocks that regulate the operation of individual platform settings.
The ‘DoFinance’ component is responsible for financial operations. Dogezer regulates financial relations between project participants. There are many adjustment options: payments can take place outside the platform (offline, which is important for projects related to art for example) or within it; payment to a task performer for work done can be made immediately; this can be via newly created tokens from a new project which will be then transformed into a share in the company or a share in its financial result. What exactly is to be taken as the financial result can also be set. It is important that the project assumes that tasks within such projects will not cost more than $10,000.
Financial obligations are set at the very beginning when the project is launched on the platform - according to the developers' plan, changes to the beta version of Dogezer (the alpha version already functions; it is constantly being updated) will be possible only with a majority of votes from project participants. In general, all conflicts within projects will be decided by voting by project team members.
Payment regarding projects launched will occur only if acceptance of the work and tokens for the employee are blocked with the help of a smart contract up to this point. If the quality of work does not suit the employer, agreement is negotiable - the coins remain blocked until agreement is reached. To monitor the integrity of both employees and employers, Dogezer operates a system of karma, i.e. the evaluation of a counterparty. This possibility is implemented by the DoMarketplace block which is responsible for the relationship between all services and individual users within Dogezer. In extreme cases, parties to the conflict always have the right to apply to court.
The DoIssues block offers the ability to set, track and monitor the progress of various tasks, like Jira. Here a mechanism for holding auctions for selecting the best task performer is available. The DoIterations component is responsible for breaking the development process into cycles and stages. DoMessaging is a full-fledged chat and messenger system to help project teams. DoFiles is a cloud space implemented within the same platform. DoDocs is a document processing and storage system with the ability to track all corrections, comments or changes. DoWiki is a component for the systematization of information, the definition of basic parameters and has a wiki-system. DoGit is similar to GitHub repository with version control capability. There is also online help, a system of recommendations and tips for starting work with a project, financial reporting systems, multi-level identification systems and, importantly, the ability to import projects from other services such as Upwork, GitHub and Kickstarter. Many listed functions are already available for testing within the alpha version of the Dogezer service - our specialists were satisfied with the results of their own alpha test of the service. In the future, important functions are planned such as an arbitration court for users within the Dogezer system, CRM integration, mobile applications, legal support for customers, as well as staging ICOs.
For implementing the planned functionality, Dogezer plans to launch the project on its own platform called Dogezer@Dogezer where users will be involved in improving the platform. It should be noted that Dogezer@Dogezer tokens will not have any relation to DGZ - there will be no additional risk for DGZ holders in this respect.
Technical development of the system is not implemented in Open Source mode. However, the source codes of smart contracts of the PreITO, Private Sale and Public Sale are published in the GitHub repository of CEO Alexander Kozlov. Development has been active for about a year, publications appear regularly. An audit of the smart contracts was conducted by Bloqchain Science, who are advisors to the project. They state that «Dogezer’s Smart Contract Audit Concludes Secure Platform for Token Sale». A record of this can be found on the founders’ Medium blog. Our specialists were able to obtain the relevant documentation – we have no questions regarding the audit.
The technical aspect of Dogezer, both implemented and planned, is certainly the strongest aspect of the project. Currently, no competitor has such a cumulative functionality.
Dogezer is creating a new market at the junction of four separate segments, since it is simultaneously an ICO organizer, a software development management service, a job search platform and a platform for attracting investment. Dogezer has competitors only in certain segments.
According to ICOdata, $5 billion in total was attracted by ICOs in 2017. It is important to note that the total market size for Equity Crowdfunding in 2015 was around half this amount, less than $2.5 billion (Massolution estimate). The ICO market has occupied an important place in the global system of crowdinvesting and it is currently in the growth phase. ICO has become one of the main ways to attract investment for start-ups in the last two years, especially for projects related to IT-development. This can be considered the main market for Dogezer.
According to Coinmarketcap, capitalization of the digital currency market in February 2018 fluctuates around $0.5 trillion.
According to the same source, capitalization of the token market exceeded $50 billion in February.
Thus the service industry for the ICO market looks very attractive and the Dogezer team has obviously decided to benefit from it. Moreover, the ICO market has obvious shortcomings in the organization of the process itself; projects often lack expertise, and qualified assistance in organizing the ICO is a demanded service that will remain relevant for a long time, especially with the functionality that Dogezer offers on its platform.
When estimating the size of Dogezer’s potential market, it should be borne in mind that in 2017 the bulk of ICO funding fell on only a few projects. For example, the five largest ICOs attracted almost $930 million - a fifth of last year’s total:
Fillecoin (decentralized data storage) - $257 million
Tezos (infrastructure) - $218 million
EOS (infrastructure) - $185 million
Bancor (finances) - $159 million
Status - $108 million
At the same time, stratification is not as large as in the real economy. Small ICOs experiencing problems with their sites, infrastructure and primary capital are up to 80% quantitatively and up to 40% in terms of market value. As a result, it is worth talking about the potential of Dogezer technology in 2018 as being up to $2 billion, assuming market volume is at last year’s level. This is the potential volume of Dogezer’s market as an ICO organizer.
Dogezer knows its competitors well and draws comparisons with them in the white paper. The closest competitor as a crowdfunding platform and ICO organizer is Starbase, whom we have previously reviewed. Colony also offers a similar platform. However, these services do not have all the functions Dogezer offers.
The same can be said about non-blockchain products such as Upwork, Atlassian Jira, Hipchat, Slack, OneDrive, Dropbox, G Suite and GitHub. Each of them individually is more profitable regarding built-in commissions than Dogezer; however, with Dogezer the functionality of each of these products is realized (or will be realized) as one of the components of an overall system. Project authors will have a universal platform for solving all their tasks without the need for other products.
Dogezer reveals the names of 17 members of the team - each of these can be found on LinkedIn from links given in the white paper. 22 employees of the Dogezer company can be seen on the project page on this social network.
The founder of the project is Alexander Kozlov (Kozlov Alexander Igorevich). He has a long-term relevant experience both as a hired developer, and as an entrepreneur. He worked at Motorola Solutions, Sony Mobile Communications, Semilimes and Crossover for Work. In 2011, he launched his project Wearehere Labs which was the predecessor of Dogezer in its design: open source platform codes for this project can be found on GitHub repositories. Alexander takes an active part in the work on Dogezer, as evidenced by his activity on GitHub. We also note his direct participation in the promotion of the platform: this year Alexander acted as guest speaker at the Crypto Economy conference in Amsterdam. A video of his speech is posted on the ITO website. Alexander actively uploads videos in English and Russian explaining the principles of the platform and the mechanism of the ICO. He is active in the community; in particular, Alexander participates in discussions on the ETHresearch portal where Vitalik Buterin has expressed his interest in the idea of Dogezer and his support. The founder has responded promptly and clearly to all questions raised by our analysts during this study.
In addition to Alexander the project employs 16 people including full stack developers, project managers, graphic designers, marketers and community managers with relevant experience; many of whom have previously worked with Alexander at Wearehere Labs. We have not found any negative information on team members.
The advisory board has experts in blockchain technologies, mathematical modeling, auditors, lawyers – i.e. people whose experience complements that of Dogezer’s staff. Among them are the vice president of Guavus, Sergei Sukov; CEO and founder of Bloqchain Science Dean Karakitsos; and blockchain specialists Max Unger and Evan Weldon. We have not found any negative information on the advisors.
DGZ tokens play an important role in the project and they are a vivid example of a utility token. The founders strongly emphasize the lack of security functions for the DGZ token in the white paper and on various Social Media: DGZ is not positioned as a security, the founders do not promise profit in any way. We emphasize that the founders are very cautious in their wording, especially in terms of any promises: the example of Munchee, which failed the Howey test, has caused all new blockchain projects to be extremely cautious.
First of all, tokens are necessary for those who are going to launch their projects on the Dogezer platform: they can be exchanged for so-called premium licenses. With these licenses, a user can reduce the cost of many operations within the service and also access unique tools that are not available to other users. Thus, DGZ is a token with access and payment rights.
DGZ tokens confer the opportunity to purchase premium licenses. 1 premium license is a premium status for 1 day. The premium status gives privileges in disputes and job auctions, a higher search position and additional functions within the platform.
The most important point is that the standard license costs $1, and 1 DGZ, which is offered at a price of no more than $1 within the Public Sale, is worth at least 4 premium licenses according to the formula:
Tokens spent for the purchase of licenses will be burned according to the formula:
It is clear from the formulas above that the more DGZ tokens are burned, the more premium licenses 1 DGZ confers. In this way the deflationary model for the token is realized, which results in the value of the token inevitably growing, adjusted for the development of the platform. We also note the decision of the team to retain only 0.5% of tokens (including shares of advisors) with vesting for three years - this contributes to faster growth of the value of the token.
A regular license inside the platform is 1 UoS, a unit that confers the right to support 1 active user for 1 week, 50 MB of disk space for 1 year and the ability to generate Project Currency convertible into $100. In addition, commission for the withdrawal of funds in the amount of 3% of the value earned will be in UoS.
The project has an MVP – an alpha version of the service is up and running, and it is already possible to run projects on this. A beta version with most of the listed functions included is planned for July this year and the launch of the full version 1.0. is scheduled for the end of the year. At the same time, projects can be launched on the current alpha version and the infrastructural demand for tokens from entrepreneurs is already emerging after the end of the ICO.
Dogezer actively promotes its product by participating in international conferences, leaving comments on its project on various crypto forums, actively working with its audience via a Telegram channel, Medium blog, Facebook, Twitter and Bitcointalk which is paying off with increased attention to the project and the ICO. We highlight the high-quality videos from Alexander Kozlov, designed to clarify the functionality of the platform and the nuances of the ICO. There is a referral program. We should also mention the generous bounty program which allocates 1.5% of all tokens - it is possible to find many articles about this ICO via crypto community news resources due to the rewards program. Support from Vitalik Buterin will also stimulate interest in the project.
In the medium and long term Dogezer plans to negotiate with existing projects to transfer their activities to the platform, work with outsourcing software companies inviting them to use their unoccupied personnel to work for Dogezer, work with users of competitor services, urging them to switch to a more universal tool and attract legal advisers. Dogezer has a working financial model with sensitivity analysis including scenario analysis, which we were able to inspect.
The main risks of the project are in the regulatory and legal environment. This is the reason why the founders do not make any promises and do not make claims about token price growth. If the DGZ token is exclusively a utility, it will obviously pass the Howey test from the US SEC, tokens of projects launched on Dogezer could be recognized as securities in many jurisdictions, since they will often certify a share in a project and also depend on project profit, being truly either shares or stock options. This could scare off a significant portion of potential customers.
However Dogezer is conducting active consultations with lawyers and plans to apportion a significant part of the budget to legal support. Currently the founders have ideas for the avoidance of legal and regulatory risks: for example, it is assumed that for some jurisdictions the token will certify a share of the owner in joint intellectual property or formalize agreements on future shares.
The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.
Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.
We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.