A Blockchain-Tokenization- Growth Hacking Experiment and an Alternative Approach to Company Ownership…?

Could one single title suffer from so many identity crises?

“No-one said it was easy.” – Coldplay

So let’s say I own a company and it is worth USD100k at the moment.

It has 100 clients, whom I love from the bottom of my wallet.

Now, because I love them so much and to show them how much I appreciate them putting up with my nonsense, I want to make them part owners of the little company that we are all a part of.

I want to reward the early adopters and those that have kept the faith etc.

I also want to reward those that have gone even further and recommended our little group to their friends, family and colleagues. I realise that this shows a significant amount of faith because nobody wants to recommend a duffer in the financial sphere to their nearest and dearest. Not on your Nelly.

Stay with me now, we are sketching out the numbers…don’t drift off because there is potential for a surprising outcome…

So here are my thoughts on how it might work…

Their share will be in proportion to the revenue that they are responsible for.

So I am going to create a token, let’s call it the ‘noob.’ I am going to create a finite amount of tokens. Let’s say, I create 100,000 tokens to represent the total value of my business. 

So at this point 100,000 noobs equates to $100,000. 

And I am going to give away 1 noob for every USD 100 of revenue that each person has generated since their time with me. So it is effectively a 1% kickback. Obviously, this proportion could be adjusted up to help to spin the wheel, fire up the machine, etc… 

Now, as we monitor the development of the system, we are going to limit the first airdrop of ‘noobs’ to 10,000. So, I am giving away 10% of the company in this first tranche.

Let’s say that total revenues for the business since startup, is USD10k, so the distribution at t0 across the current clientele is 1000 noobs shared across the existing clients.

Existing clients continue to accumulate noobs as long as they remain a customer.

But there is another way to accumulate noobs…

Each client has their own unique noob generating code.

As they introduce new clients, they accumulate noobs at the rate of 1 noob for USD200 of revenue generated through new clients.

The process continues until all 10, 000 noobs are distributed for the first tranche. 

There could be further tranches too. Tokens will be freely transferrable. This is where an application of the blockchain will be required to ensure the accuracy of the noob ledger…

So what is the point? Why bother with all of this block, chain & tokens pantomine and why would anyone want to give away 10K and 10% of their company?

Well, the point is to provide a tangible incentive for clients to help the company to grow, so that they might accumulate 1 or 2 or maybe even 3 % of a company if they were particularly good at sharing the company to the right people to help it to grow. If you can take a company with 100 clients and valued at 100k to a 500 client company worth 500k, then the original noob drop is 5Xed anyway. 

So the original noob is valued at 5x it’s original value.

We have a bunch of clients who are now serious stakeholders and part-owners of the business.

I’ve given away a fraction of my company but 5x’d the value of my remaining holding.

What, if we could tweak the numbers in the above example to make sure that it was a really attractive proposition to the clients?

What if we decided to give away 20% or 40% of the company? How attractive would that then be to the original client base or the first wave of new cients…?

There would obviously be an endpoint to the growth-hacking and allocation of tokens as we are dealing with a finite number of ‘noobs.’

And growth thereafter, is going to require alternative mechanisms, but if you backward engineered it for your optimal client base size, it might just be job done…

I would love to hear your thoughts and would particularly welcome the thoughts of the blockchain, startup, growth hacking and tokenization communities and behavioral economists, just for fun…

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