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I am an software developer with over 11 years of experience in industry and has worked as a software developer for some of the leading firms in vacation rental space. I recently started playing around with solidity and have a solid dapp idea but I am slightly confuse with certain things so hope you guys can help me understand this.

Background:

I have been working on a project and have created a tool which is a dream for online marketers. There are some tools out there like this for marketers and one of them did over 100 Million last year alone which charges roughly $100/month for subscription and the tool I created is much more sophisticated and better than what is currently available as a paid service. I want to create a lite version of this tool as a DApp so marketers can subscribe for it and pay with ethereum. The marketers will also be rewarded tokens for using the platform.

ICO Idea:

The ICO will start with a soft cap of 500000 tokens priced at $1 and a hard cap of 1000000 tokens as hard cap to raise maximum amount of $1 million . The total tokens will be 10000000. 50% tokens will be for investors but only 10% tokens will be dispersed to investors in the first ICO as I do not need a lot of money since most of the project is already built. 30% tokens will be reserved for users and 20% of the advisors, developers, team, bounty, airdrop etc.

Questions:

  1. I am planning to make this a little more than investment for investors so I am thinking of rewarding the investors. For that I am thinking of giving the 50% of revenue of this DApp back to the token holders. The more tokens you have the more you earn as a investor. For example the startup made roughly $1 million as ether from subscriptions so $500000 worth of ether will be dispersed to all the token holders depending on the amount of token you hold. For example there are 500000 token holders that means each token will get $1 of ether back as return so an investor who invested in 100 tokens will get $100 worth of ether, 500 tokens will get $500 worth of ether and so on. Is there something wrong in this approach ?
  2. Since the token holders will be rewarded for the investment that means the marketers who will use the platform are rewarded with tokens which means they will also get some return because of the tokens they earned by using the platform. You guys think this is the right approach ?
  3. Since I created the tool and it is much extensive and I just need to take some of the pieces out and create a Lite DApp of the entire platform should I do it before the ICO or should I demo it to investors after they have invested ?

P.S If there are any other things I am missing please ask and I would love to answer them. I am an experienced programmer but this will be first time I will be creating something of this sort.

Thanks.

closed as primarily opinion-based by Lauri Peltonen, Achala Dissanayake, Richard Horrocks, Jaime, shane Sep 26 '18 at 17:42

Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.

  • There is a problem with your question , you are asking a marketing advice on a technical forum. Not the right place. While I am myself good at marketing, I can't make any comments on your questions because I don't know your market. You created a tool, good for you, why is this tool can't be marketed with fiat money??? Why do you need cryptos? Cryptos are 0.0000(who knows how many zeros) 1% of the fiat currency market. If your idea is good, market it with fiat first, and cryptos is not for you right now. – Nulik Sep 26 '18 at 0:16
  • @Nulik I want to create a DApp and run ICO. I do not have enough funds to bootstrap the project myself so either I will need a VC or Angel which I do not want and than I cannot reward marketers to switch to using this platform if I follow the traditional marketing route. Why was steemit created on blockchain when there are many platforms like this out there. Also what place do you think is good for asking marketing advice if not stackexchange ? – Smoke Sep 26 '18 at 1:55
  • Try reddit, there are a bunch of good communities like /r/startups, /r/entrepreneur, and /r/marketing. They also have chat rooms where you can get quick responses. As for your general premise, agreed that cryptocurrency isn't a good fit for your product -- you're just tacking it on to try and fundraise. My gut is that the hypetrain already passed for that. If the coin isn't core to the product, and the product is any good, then why not just sell the product? The value of the coin after the ICO is what people will pay for it, not what you say -- reimbursement via coins is shaky at best. – ohsully Sep 26 '18 at 4:40
  • You don't need to create a DAPP to run an ICO. A token can be bought with any wallet that support contract interaction. You only need to write the contract and upload it to the blockchain. When the DAPP is ready you replace the token for a real token that is going to do the thing it should do. Try it, copy an ERC20 token contract example, deploy it, create the web page, add your business plan, and go for it. If the first thing is to find money, then do it. – Nulik Sep 26 '18 at 12:54