AZ FundChain Set to Make ROSCA Funding Transapent and Widely Accessible
Originally published on: CoinSpeaker
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February 06, 2019
One of the most popular ways of private funding nowadays is ROSCA funding (or how it is also called “money circles”). But despite the popularity of these circles, the traditional approach of their organization doesn’t seem to be very transparent and open which makes it rather controversial for honest people.
Crowdfunding as a way of funding projects also can boast enormous popularity today. It is used in a wide range of various spheres including science and research, real estate, philanthropy and civic projects, and many others.
The statistics data shows that last year the amount of money raised via crowdfunding worldwide increased by 167% compared to the previous year and it is believed that these figures will grow further. But there are still some risks associated with this way of raising money that prevent many people from dealing with it.
The team staying behind AZ FundChain has found a way to address the existing issues in ROSCA funding and is ready to present its solution.
What is AZ FundChain
FundChain is created to help users to overcome the problems that exist in traditional money circles and crowdfunding. This platform is built on blockchain and is completely decentralized. Via its user-friendly mobile application, it is possible to get access to financial services related to money circles and crowdfunding.
The app has an ID verification feature which is intended for minimizing risks related to fraud. To eliminate the opportunity to create fake accounts FundChain will introduce Know Your Customer (KYC) processes.
The platform will provide ratings of verified profiles in order to ensure an absolutely transparent environment. Users will be able to communicate with each other via private messages before joining or organizing a money circle.
Transparency is one of the top values for the projects that’s why the team is going to do everything possible to make all the processes 100% fair and open.
AZ Tokens and Buyback Events
The platform will have its native ERC20 token on the Ethereum blockchain called AZ in which the platform will accept its fees. The team is building FundChain according to the revenue and income business model.
The platform will charge 1% fee for each withdrawal made on a money circle from a participant. The raised revenue in USDC (which will ensure more stability) will be used to buy AZ tokens from the market which will diminish the total token supply.
The usage of USDC is important to ensure no losses while making withdrawals or deposits. Organizers of money circles will be able to create them either based on Ethereum or USDC. Fees collected via Ethereum will be automatically converted into USDC.
Every month a buyback event will be organized to buy AZ tokens at $1 per one. 1 USDC will be used to buy back 1 AZ token. Users and investors will have a possibility to take part in this process and to do it they will need to send their AZ tokens to stability fund smart contract which will be published on FundChain platform before each buyback event. Those who will send their AZ tokens to the designated address will get the same amount of USDC.
At the moment, the project is conducting its ICO. The private sale started in January and lasts till March when the public sale is scheduled.