AngelBlock Protocol: Investor Protection in the Crypto Space

04 Jul 2024 · 10 min read

The Genesis of AngelBlock Protocol
The Genesis of AngelBlock Protocol
The Stabble Raise: A Case Study
The Stabble Raise: A Case Study
Milestone Voting: A Pillar of Investor Protection
Milestone Voting: A Pillar of Investor Protection
A Lifeline for Investors: The Refund Mechanism
A Lifeline for Investors: The Refund Mechanism

AngelBlock Protocol: Investor Protection in the Crypto Space

In the rapidly evolving world of blockchain and cryptocurrency, the need for robust and transparent mechanisms to protect investors has never been more critical. AngelBlock Protocol has always maintained this approach, and the proof of concept we designed has welcomed an array of savvy investors and innovative startups to the protocol since inception. Our first significant raise, which involved the startup Sola-X (now Stabble), was the perfect pre-cursor of what was to come in changing the fundraising landscape for good.

The Genesis of AngelBlock Protocol

AngelBlock has always had a clear mission: to create a secure, transparent, and efficient fundraising environment for blockchain projects. However, traditional fundraising methods (launchpads) in the crypto space have often been marred by a lack of accountability and transparency, leading to significant financial losses, as well as uncertainty for investors. AngelBlock has succeeded in addressing these issues by implementing a decentralized governance mechanism that empowers investors and ensures that funds are released only when predefined milestones are met.

The Stabble Raise: A Case Study

Stabble, which was one of the most promising startups we had engaged with at the time, was the first project to raise funds through the AngelBlock Protocol. The raise happened in the pits of the bear market, and ultimately, the raise was successful by standards of reaching the soft cap goal. This was the first test for the protocol parameters to engage in milestone based fundraise unlocks subsequent to the actual raise, and ultimately investor governance as a proof of concept. Both us and the Stabble team were excited to be on this journey together.

Milestone Voting: A Pillar of Investor Protection

At the heart of AngelBlock's governance mechanism is the concept of milestone voting, through means of an ERC-1155 badge, which represents an ‘ownership share’. Unlike traditional fundraising methods, where funds are often released in a lump sum, AngelBlock disburses funds in stages, contingent upon the successful completion of predefined milestones. This approach ensures that startups remain accountable and that investors have a say in the project's progress.
In the case of Stabble, the startup initially met its early milestones, and funds were released accordingly. However, as the project progressed, it became evident that Stabble was struggling to maintain its trajectory. The milestone voting mechanism allowed investors to assess the situation and vote on whether the next tranche of funds should be released. The ultimate test came when milestones kept getting pushed with no view of when they would get completed.

The Power of Decentralized Governance

The decentralized nature of AngelBlock's governance mechanism proved to be a game-changer. When Stabble failed to meet its critical milestones, investors exercised their voting rights and decided against releasing further funds. This decision was not taken lightly, but it was a necessary step to protect their investments.

A Lifeline for Investors: The Refund Mechanism

One of the most compelling features of the AngelBlock Protocol is the refund mechanism. In the event that a project fails to meet its milestones after necessary due process (such as a rescue plan), investors are entitled to a refund of their investment, barring any unlocks that have happened at the time. This safety net is a crucial aspect of AngelBlock's commitment to investor protection.
In the case of Stabble, after investors accepted a new rescue plan to keep their milestones on track, Stabble again failed to meet their obligations at the time. Through negotiation with the Stabble team from AngelBlock, and an overwhelmingly one-sided governance vote from the investors themselves, the refund mechanism was activated, and investors were able to receive the entirety of their original investments back. This outcome not only preserved investor capital but also reinforced the trust and confidence in AngelBlock's governance model.

A New Era of Fundraising

The Stabble raise serves as a powerful example of how AngelBlock Protocol's robust governance mechanism can protect investors in the volatile world of blockchain and cryptocurrency. By emphasizing milestone voting and incorporating a refund mechanism on failure of delivery, AngelBlock has set a new standard for transparency and accountability in fundraising.
As the crypto space continues to evolve, platforms like AngelBlock will play a pivotal role in fostering a secure and trustworthy environment for both startups and investors. The success of the Stabble raise, despite the project's challenges, underscores the importance of decentralized governance and the potential it holds for the future of fundraising. All this being said, Stabble continues to operate and has their TGE planned for July. We wish them all the best in their future endeavours. However, what this case study has shown us in the real world is that AngelBlock Protocol is not just a platform; it is a promise. One that plans to keep ensuring a more secure and transparent crypto ecosystem for fundraising.

Written by: Leith Shankland

Protocol based platform
for startups and investors.


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