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Crowdfunding Platform

Crowdfunding Platform​

Nümi Crowdfunding is a platform that allows creators to raise investments for their ideas. Creators place their works and start a crowdfunding campaign for further content creation, while investors in turn choose a project that interests them, invest in it, and receive a share of the revenue or a portion of the NFT assets.

Through the crowdfunding mechanism, a creator can create a page with a description and roadmap of their project and start collecting investments for individual milestones. This phased approach reduces risks for investors.

For the automatic distribution of income from the realization of a project through crowdfunding, the mechanism of revenue sharing is used. This mechanism works using a special smart contract and CF tokens, unique to each project.

The Revenue Sharing Mechanism​

The process starts with the creator describing the project in several stages (milestones) in Nümi Crowdfunding. When creating, the creator can specify:

  • the target amount of funds to be collected (funding goal). For example, the creator decided to collect 1000 NÜMI. While the target amount is not collected, the creator will not be able to start using the funds raised. If the collected amount is more than the target, all payments will be proportional to the collected amount. In this case, 1% of the funds collected goes to Nümi Treasury as a service fee.
  • the percentage of investments as a down payment. For example, the creator can designate 10% of the funding goal (100 NÜMI) as a down payment. This amount can be used to start developing their project after investment funds are collected.
  • the percentage for each milestone. The creator can develop their project by dividing it into several stages or milestones. For example, by dividing the project into 3 milestones, the funds can come as 20%, 40% and 30% of the funding goal (with a 10% down payment). So the creator can complete the first stage and receive 200 NÜMI for the next stage, and so on.
  • the percentage of primary and secondary sales, which the author takes as royalty. If royalty is 5% and sales amounted to 2000 NÜMI, then royalty will be 100 NÜMI.
  • the share of royalty as revenue for investors. If royalty was 100 NÜMI, and the author decided to give investors 50% of the royalty, then investors will receive a total of 50 NÜMI, which will be distributed proportionally to the funds invested. Proportions are maintained using CF tokens, which investors receive when investing.
  • the number of bonus NFTs (Pledge NFTs) and the minimum investment amount for receiving one bonus NFT.

For proportional distribution of income between investors in Nümi Crowdfunding, a smart contract for revenue sharing with CF tokens is used. After selecting a project and investing in Nümi tokens, investors receive CF tokens in proportion to the invested funds. Accordingly, ownership of these tokens guarantees them a share of the project's income.

Thanks to the CF tokens, an investor can sell or transfer their share in the project to another user. Since CF tokens have the TIP3 standard, they can also be placed on other platforms.

Crowdfunding Reviewers​

In crowdfunding, trusted reviewers keep a watchful eye on each project and ultimately confirm the achievement of the milestone. Without their confirmation, the creator cannot use the investments for the next stage in the roadmap. Trusted reviewers are approved users of the system who possess a sufficient level of expertise and trust to perform their functions.

In the event that the creator does not reach the goals set in the milestone and their request for additional investment is declined, they have one opportunity to correct the remarks and request a new review. The project is closed upon the expiration of the final deadline or at the creator's discretion. Then, the funds collected but not yet used by the author may be returned to the investors.

Investors can earn money from the sales of NFT items in the collection, including a percentage of primary and secondary sales, as well as earn ownership of NFTs themselves. The more progress made on the project, the larger the funding the creators will receive, with the size of funding dependent on the complexity and length of the project.

Financing can come not only from user-investors but also from Nümi itself in the form of grants associated with certain events or as rewards for conducting contests.