I feel like I have already said “wow, what a week!” far too many times in 2022. The spectacular collapse of FTX and Alameda Research has dominated the feeds of everyone in the industry, and it’s been frustrating, sad and confusing for the crypto community in equal measures.
With that said, I’m going to limit my comments on the unfolding situation, partly because everything has already been said, and partly because while the industry takes pause to lick its collective wounds, the Connect Financial team is still building.
In this week’s update, we’ll be restating our commitment to transparency, releasing the ConnectDAO whitepaper and some updates around the upcoming airdrop. If that wasn’t enough, make sure that you read to the end of the update to learn about a new ConnectDAO Equity project that we’re preparing to launch.
Let’s dive in.
How Connect Financial handles client funds & third parties
Although we haven’t launched yet, it’s important to remind our community, customers and potential investors about the way that we approach security, counterparties and assets under management.
Connect Financial has designed a business model that adheres to stringent regulations, can withstand the pressure of an ever-changing financial environment, and ensure the protection of our customers. We have prioritized creating crypto-centric innovative financial solutions through utilizing industry-leading services that are aligned with our rigorous risk framework and that meet our prudent standards.
These practices ensure that there is no threat to Connect Financial’s sustainability, safety, and soundness.
Post launch, we will also be publishing a real time transparency report that can be verified on chain detailing our assets in reserve and obligations to users across the main business verticals.
ConnectDAO Whitepaper and Initial Offering
For those of you who have been around for a while, you’ll already be familiar with ConnectDAO, the umbrella organization that governs the ConnectDAO Projects, as well as working as a crowdfunding platform for crypto and real-world investments.
You can now read the whitepaper here: Connect DAO Whitepaper
We’ve been working hard on the implementation of ConnectDAO over the past year, and all of the core functionality has been developed and is currently being tested.
At the same time, we are getting ready to offer CNFD tokens for sale. Prior to launch, we are offering a tranche of 500,000 tokens for community sale at a reduced rate prior to opening up the open public sale.
The initial tokenomics for ConnectDAO are as follows:
We are in the process of finalizing the token generation event (TGE) for December 15th and will be posting information on the public sale round through the Discord and Telegram channels.
A great part of the initial value proposition of ConnectDAO is that it is being seeded with a small equity stake in Connect Financial. This position will grant its portion of the revenues to flow into the DAO treasury and Reward Treasury.
You can read more about the tokenomics and token schedule in the white paper.
Of course, we can’t forget about the CNFD airdrop for the holders of CNFI tokens. We’ve made some important changes relating to airdrop eligibility to compensate for some holders who came in after the last snapshot but have become valuable members of the community, and some who have left.
The airdrop will now be based on a dual-snapshot.
We had an airdrop allocation of 500K CNFD for community members that staked more than 5,000 tokens at the point of the airdrop snapshot in May, 2021. Since that time, the picture has changed significantly. Some CNFI holders have increased their holdings, others have unstaked some of their tokens, and others that weren’t part of the original snapshot have built up large holdings.
We want to make sure that all CNFI stakers get a chance to participate in the airdrop, so we’ve updated the eligibility criteria. In the next 30 days, we will be taking a snapshot of all staked CNFI holders on token.connect.financial.
The airdrop will be distributed to members based on their average holdings at the time of the first snapshot and the second snapshot.
- Both snapshots are based on staked CNFI tokens on token.connect.financial.
- You do not need to be part of the initial snapshot to be eligible to receive an airdrop.
- You need to stake equal or greater to 5,000 tokens at the time of the second snapshot to be eligible for the airdrop.
- Your airdrop allocation will be weighted equally between the first and second snapshot.
The team is very excited about the launch of ConnectDAO alongside the Connect Financial MVP, and we feel strongly that the DAO has huge potential to capitalize on the real yield trend, despite the chilly market conditions.
Another thing: Smart Metal
A separate Connect Financial team has been quietly working on a secret project that is completed and will be launched in the coming weeks. This project has been a long time vision for myself and I’m excited to see it come to fruition. This type of asset class has strong fundamentals and will prove to be a cornerstone of our ecosystem.
You’ll have to wait until the next community update for all the details, but in the meantime, I’ll leave these screenshots here…
Connect Financial Update
We can’t end this update without giving you a small update on our core product after showing you the other items we’ve been working on.
Development continues to clear out our log of reported issues and preparing the infrastructure for production launch.
With that in mind, we are setting our community release of the Connect Financial platform for this upcoming January as a soft launch to allow you to be the first to give us feedback and use our systems. This will run for approximately one month into February where we will open the platform for full public onboarding.
It’s relieving to give an updated timeline for this and we are feverishly (some figuratively and some literally..) working to deliver the best version of our product vision and something that is unique in the market space.
Until next time, be kind to each other and stay safe.