Analysis of district0x Token – Decentralized Markets and Communities - Crush Crypto

Analysis of district0x Token – Decentralized Markets and Communities

Summary

  • Project Name: district0x
  • Token ticker: DNT
  • Websitehttps://district0x.io/
  • Whitepaper: https://district0x.io/docs/district0x-whitepaper.pdf
  • Hard cap: US$50 million (ICO contributors own 60% of total token supply if hard cap is reached)
  • Soft Cap: US$10 million
  • Conversion rate: 1 DNT = US$0.0833 if hard cap is reached
  • Maximum market cap at ICO: US$83 million
  • Bonus structure: None
  • ERC20 token: Yes
  • Timeline: July 18 at 3:00 pm UTC to August 1 (please refer to district0x’s website for most up-to-date information)
  • Token distribution date: right after the crowdsale ends

Project Overview

What does the project do?

district0x Network is a collective of decentralized marketplaces and communities powered by Ethereum, Aragon, and IPFS. With district0x, it is easy to create decentralized autonomous organizations (DAOs) as all districts provide the following baseline functionalities:

  • Posting and listings
  • Search and filtering
  • Ranking and reputation
  • Payments and invoicing

All the districts will utilize an open source framework called d0xINFRA. The d0xINFRA framework is designed to be open and extendable, allowing districts to be customized and granted additional functionality through the use of auxiliary modules.

Here is an introduction video of district0x (video is 3:23 long):​

How advanced is the project?

The first district, Ethlance, has been launched on the Ethereum MainNet since January 2017. Ethlance is a freelance job market where freelancers can earn Ether as compensation for their work.

There are two more districts current under development: ENS Bazaar and Meme Factory.

There may potentially be two more contribution rounds, v0.2 and v0.3. The maximum dilution is already taken into account for in the Summary section. Below is the development roadmap for the project.

Prior to potential Contribution Period v0.2:

  • Deploy d0xINFRA
  • Migrate Ethlance to d0xINFRA
  • Deploy ENS Bazaar to district0x Network
  • Deploy Meme Factory to district0x Network

Prior to potential Contribution Period v0.3:

  • Enable district extendability via auxiliary modules
  • Deploy 5 additional districts to district0x Network
  • Deploy district0x Network Token Staking module
  • Deploy Aragon Governance module

Following potential Contribution Period v0.3:

  • Deploy district creation platform
  • Deploy district registry
  • Deploy auxiliary module registry
  • Handover governance of the district0x Project to district0x Network Token holder

What are the tokens used for and how can token holders make money?

DNT is a staking token, used by holders to join districts and participate in their governance. Basically, you become a “shareholder” of the district if you stake your DNT in it.

Once you stake your DNT in a district, you receive voting shares in that district's Aragon entity, which are used to determine everything from a district's branding and design, to the way in which they choose to attempt to monetize, to how any revenue generated is distributed or utilized.

Hence, token holders can share the profits generated by the districts that they have stake in.

There are two ways to make money from holding DNT – from more usage of the districts in general (even if they are the districts that you didn’t stake) and from the profit generated from the districts that you staked your DNTs in.

Another way to think of token value is that DNT market cap needs to be higher than the sum of all the districts’ value. Some districts will fail, others will succeed. The failed ones have a value of zero, but the successful ones can potentially be very valuable.

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Team

District0x has been a bootstrapped project created by its two co-founders. The team is hiring 2 roles now – a project manager and a ClojureScript developer.

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.


Opportunities

  • Already have a functioning district since January 2017 – it is one of the more advanced ICO projects out there. This lends a lot of credibility compared to most ICOs as it shows that the project is run by capable people.
  • There are two ways to make money from DNT – from appreciation in DNT or from staking the right district. If you stake a district that is very profitable, the potential profit sharing can be significant.
  • There is potential for district0x to become the go-to place for creating DAOs. Lots of districts can be created, as long as they use any of these functions: posting and listings, search and filtering, ranking and reputation, and payments and invoicing. This is great for the Ethereum ecosystem.

Concerns

  • It is unclear how much easier it is to create DAOs on the district0x platform. If the cost and time savings are not significant, then there may not be many districts to be created on the district0x platform.
  • If you stake an unprofitable district, you will not be able to receive distributions from it.
  • The hard cap of $50 million is on the high side.

Conclusion

Overall, I like this ICO for its long-term potential. With this token, you only need one or several districts to be successful in order for DNT to appreciate in value. This is different from other ICOs where they only have one project and token value hinges entirely on the success of that one project. It is going to mitigate the risks compared to most of the other ICOs.

Our thoughts of the tokens for short term and long term are as follows:

For short-term holding

Neutral. On one hand, it already has a functioning district which brings a lot of credibility to the ICO, but on the other hand, the hard cap of $50 million is rather high.

I don’t think it has problems raising the hard cap amount, but once the tokens hit exchanges, there may be a lot of selling pressure since there will be many DNT holders.

For long-term holding

Good. As mentioned above, there is a lot of potential for DNT value because even if only a few districts become successful, DNT value should appreciate substantially.


For more information about the ICO, please visit the following links:

Website: https://district0x.io/

Whitepaper: https://district0x.io/docs/district0x-whitepaper.pdf

District0x blog: https://blog.district0x.io/

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