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From Fundraising to Equity: A Step-by-Step Guide to Blockchain-Based Reward Crowdfunding

Discover how blockchain-based reward crowdfunding works with Dopot. From creating campaigns to issuing NFTs as rewards, learn how startups can raise capital securely and transparently while offering investors exciting, tradeable rewards.
Author: Rehan Shafqat
2025-03-21

From Fundraising to Equity: A Step-by-Step Guide to Blockchain-Based Reward Crowdfunding

Raising funds for new ventures are as complex as solving a puzzle in today's dynamics. Unconventional crowdfunding methods are trapped by bureaucracy, hidden fees, and slow processes. Fortunately, blockchain technology has upgraded the industry with its revolutionary effort to provide an environment where startups launch their projects in a completely secure and transparent way. With the help of Dopot, an innovative platform for decentralized reward crowdfunding, entrepreneurs and investors can experience a smoother, safer path to success.

What is Blockchain-Based Reward Crowdfunding?

Let's say there's a business that sells sustainable garments for adults at reasonable prices. The owner needs capital to expand his business but is afraid to use traditional fundraising methods because of high fees and complex bureaucracy[1]. The owner tries innovative blockchain-based reward crowdfunding through Dopot, a decentralized platform designed to bring projects to life while minimizing risk and maximizing trust.

Now, the question arises: What is Dopot doing differently than its competitors? With its cutting-edge blockchain technology, Dopot provides a secure and transparent environment where funds allocation is visible to investors, and no intermediary is involved with the startups. Decentralized Autonomous Organizations (DAOs) ensure participants are safe from any fraud or systematic manipulation through smart contracts.

Step 1: Creating the Campaign

To kick things off, the startup creates a crowdfunding campaign on Dopot. This is done using a smart contract, a self-executing agreement in which the terms are automatically carried out when specific conditions are met [2]. The startup owner declares a fundraising goal of, let's say, 100,000 DAI and invites investors to back the project.

These are the investors who believe in the sustainable garments business and want to invest, let's say, 1000 DAI. With the help of blockchain, this investment is recorded on Dopot, which ensures that it can be tracked by everyone involved in the fundraising process. After the fundraising goal is achieved, the project moves forward, and rewards are handed out.

Step 2: Fungible Tokens

Here's where the magic of blockchain happens. Each investor receives fungible tokens representing their campaign investment in exchange for their contribution. Let's break it down:

  • Fungible Tokens are like digital dollars that represent the value the investor has put in [3].
  • Once the fundraising goal is met, these tokens will transition into NFTs (Non-Fungible Tokens), shifting from investment to reward.

For instance, if the sustainable garments campaign hits the goal of 100,000 DAI, the investor's fungible tokens are automatically converted into an NFT, representing their rewards, such as an exclusive invitation to the garment's grand opening event or a special dinner for two.

Step 3: NFTs

Once the fundraising target is reached, the investor's fungible token morphs into an NFT—a unique token that can't be replicated [4]. The beauty of NFTs is that they hold more than just monetary value; they're also collectible.

For example, an investor who holds an NFT from the garments campaign might receive:

  • Special perks, like discounts for future meals or VIP access to exclusive events.
  • The ability to trade the NFT on secondary markets, where other interested buyers may want to obtain the reward.

This transition from fungible token to NFT brings even more value to the investor, offering the satisfaction of contributing to a successful project and a tangible, tradeable asset.

Step 4: Trade and Refund Protection

Another unique feature of Dopot is its built-in security and protection for investors. If the campaign doesn't reach its funding goal, the investor can request a refund of their fungible token. The token can be liquidated on the secondary market if the goal is met and the reward hasn't been delivered yet.

Thanks to itssmart contract, Dopot ensures that every transaction is secure. If there are any disputes or issues, the DAO (Decentralized Autonomous Organizations)—made up of Dopot Token holders—can intervene and make decisions that benefit the wider community.

Additionally, Push Protocol ensures smooth, encrypted communication between investors and startups, reducing the chance of fraudulent activities and offering complete transparency.

Step 5: The Role of Smart Contracts and Decentralized Governance

One of the key advantages of blockchain technology is its ability to operate through smart contracts. These are self-executing contracts that ensure all terms are met automatically. Investors and startups don't need to rely on middlemen or intermediaries.

In cases where things don't go according to plan, the DAO votes to resolve the issue, ensuring that decisions are made fairly and transparently. The DAO's decentralized structure prevents a few bad actors from exploiting the system, making it a secure, transparent, and trustworthy way to raise funds [5].

Why Choose Dopot?

Here's why Dopot is the future of fundraising for small entrepreneurs and startups:

  1. Transparent: With blockchain technology, every transaction is recorded and visible, eliminating hidden fees and surprises.
  2. Secure: Dopot uses smart contracts to ensure every step of the process is carried out according to plan, with protection against fraud.
  3. Accessible: Entrepreneurs with small ideas can raise funds without dealing with middlemen or banks, opening up new opportunities for investment funding.
  4. Rewarding: By offering NFTs as rewards, Dopot turns traditional crowdfunding into an exciting, collectible experience for investors.

Conclusion

The world of fundraising is evolving, and Dopot is leading the charge with its blockchain-powered reward crowdfunding platform. Using fungible tokens and NFTs, Dopot offers a secure, transparent, and efficient way for startups to raise capital and investors to get involved in exciting new projects. Whether you're a small entrepreneur with big ideas or an investor looking for virtual capital, Dopot is the platform to help make your dream a reality.

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