DAO Capital invests in Freela — DeFi powered, self-govering DAO that revolutionizes Freelancing
DAO Capital is proud to announce our recent investment in Freela, a DeFi powered and self–governing DAO designed to act as a broad platform for freelancing. Freela is introducing a game changing strategy in this space, aiming to provide the best experience for Business to Business (B2B) and Peer to Peer (P2P) interactions.
Freela’s intuitive user interface accommodates a large variety of players in the open market to match skilled freelancers for the job postings worldwide with a commission free transition. Freela’s innovative model assures a professional mediation and a fair dispute mechanism, while its platform bridges the gap between blockchain technology, DeFi liquidity pools, and DAO Governance.
Issues facing the Freelancing Industry Status Quo
There is a wide-ranging problem in today’s global labour market in distributing jobs equally and matching the skills of an employee suitably with an employer. Numerous online job boards and platforms have emerged in the wake of technological growth; however these platforms lack an efficient and trustworthy mechanism to match employees and workers around the world.
Traditional employment agencies suffer significant disadvantages that are yet to be addressed:
- Centralization & Bias: Popular platforms such as Upwork and Fiverr are centralized organizations, and as such the data that is exchanged in the course of an employment contract can be accessed by the company or in the event of a data breach by unauthorized parties, exposing employers to the risk of intellectual property (IP) theft. These companies also have a flawed dispute resolution mechanism which is slow, inherently biased in favour of a trade occurring, and not specialized enough to understand the intricacies and details of every single employment field.
- Low Flexibility: Platforms have restrictions on their proprietary listing models and employers are unable to post job advertisements outside the fixed bounds. Similarly, employees are shoehorned into roles which do not accurately define their entire skill set and capabilities.
- High Fees: Centralized popular platforms have capitalized on their popularity by charging clients up to 20% commission on gigs. Furthermore, these exchanges are paid with services such as PayPal which can take up to another 3% in fees per transaction. This results in higher costs for the employer and ultimately reduced wages for the freelancer.
- Slow Settlements: Current platforms rely on traditional banking and payment providers such as PayPal which take additional time to transact payments to employees who may be in need to access their earnings. Notably, Upwork has 5 business day hold on all payments in case of any disputes which arise. These wait times are to the detriment of the freelancer which may affect their livelihoods in the meantime. Cash flow is king in the gig economy, unfortunately these traditional payment systems are struggling to provide the necessary support for the ecosystem to thrive.
The Solution: Freela Model
Freela’s innovative platform, along with its integration into blockchain technology and independent arbitration model, improves on the current traditional offerings in the freelancing marketplace to solve a number of current state challenges within the gig economy
Platform Integrated into Blockchain
- Any information stored on the Blockchain is immutable. This provides the means to ensure that important information has not been altered. Further, no party will be able to hide or deny presence of a previous agreement or negative review will always remain stored on the Blockchain.
- Blockchain provides for commission free interface and virtually zero cost frictionless transactions in making payments for jobs, regardless if they are on the other side of the globe.
- There will be no need to acquire crypto to pay for transactions as is the requirement for other chains.
- Liquidity pools on the platform will be used to provide frictionless liquidity for any user, arbitrator rewards, and will facilitate interaction with payment gateways.
- Freela uses smart contracts between the parties which assists in reducing middlemen costs by automating financial transactions, making them quicker, more efficient and affordable.
- Blockchains offer a system that does not rely on centralised entities, giving confidence to users due to trust less architecture and avoiding excessive fees.
- Digital identities will be securely stored on-chain in an interoperable and tamper-proof infrastructure.
- All parties involved (Employee, Employer, and Arbitrator) will have Digital ID’s that cannot be forged.
Dispute Resolution & Arbitration
- Freela’s platform will include a dedicated dispute mechanism that has resolution & arbitration as its primary and sole purpose.
- Independent Arbitrator’s with expertise related to the field of task/job which will come in to resolve any issues between the parties.
- When an employee or employer calls for an arbitration, then 2.5% of the value of the job will be collected to the Arbitrator fund.
- The Arbitrator will be responsible for validating any task completed and whether any adequate work has been done and giving their approval if the funds should be transferred from smart contract to employee or returned to the employer’s wallet.
- Freela’s DAO Governance will decide the fixed amount added to the Arbitrator fund which will be used to pay salaries of arbitrators on a monthly basis. The company will never be able to access the Arbitrator fund.
Freela’s Value Proposition and Competitive Advantage
The Product: Freela’s product is innovative, unique, and difficult to emulate. Freela is a one of its kind decentralised and broad platform for freelancing with assured professional mediation. Its DeFi liquidity pools and DAO governance on Blockchain technology are certainly difficult to outdo.
The Market: Freela platform allows for a variety of services that allow seamless entry in the marketspace, with parties being able to benefit with all P2P, B2P and even B2B transactions and contracts that will find this platform imperative for their businesses.
Incubation: Freela is incubated by Vasireddy Venkatadri Institute of Technology (VVIT), a premiere educational institution of Andhra Pradesh, India as the Technology Business Incubator for Freela provides its enormous resources and service. It is an elite engineering college with enormous captive talent pool and access to an even larger talent pool and market of around 300 engineering colleges through its status of being an essential spoke in the skill development infrastructure of Andhra Pradesh State Skill Development Corporation. The Founder and Chairman of VVIT, Vidya Sagar Vasireddy is acting as an Advisor to Freela.
The Freela Token will be central to the entire ecosystem, with its value directly related to token utility, platform value, suitability, and growth.
Utility in Freela Ecosystem
- Freela Tokens can be used by any stakeholder for any Transaction on Freela Platform.
- Tokens can be used by any stakeholder for Staking in liquidity pools on the Platform.
- Tokens can be used for Purchases of any product/service on the Platform.
- Tokens can be used for Selling of any product/service on the Platform.
- Tokens itself extends its utility as a commodity for Buying and Selling of the same on the Platform.
- Freela Platform encourages attributing an eligible stakeholder who has a 0.1% stake of Freela Token Supply to be a member of Governance as Governor.
- Freela Tokens can be used in all the transactions either by the employer or employee without any payment gateway charges.
- 0.1% stake of Freela Token Supply will encourage attributing an eligible stakeholder to be Governor. Freela Tokens also affect the reputation scale of an employee.
- Stakeholders can do purchases in your account.
- Your reputation level will be increased based on how many tokens you staked in your account.
- By using referrals we can earn Freela tokens
The Freela team behind the project possess the credentials and strong track record to succeed in carrying out this ambitious project
Mahadev Vasireddy — Founder & CEO
Chief Financial Relations Officer at VVIT and VIVA
Badari Prasad Suryadevara — Chief Financial Officer
Lakshmi Tripirneni — Chief Operating Officer
Managing Director at L4G Solutions Private Limited
Previously Chief Consultant, Head — Engineering & International Programs
Siva Prasad Pinnamaneni — Chief Technical Officer
Assistant Professor at Vasireddy Venkatadri Institute of Technology
Freela is a first of its kind Defi powered and self governing DAO designed to act as a decentralised broad platform for freelancing transactions. It provides a platform for both B2B (Business to Business) and P2P (Peer to Peer) commission free transactions with its intuitive user interface matching skilled freelancers for the job postings worldwide. It brings in a unique innovative model with professional mediation and thus ensuring a win-win transaction between the employer and employee, ensuring best quality work for the employer and best remuneration for the employee.
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About DAO Capital
DAO Capital is a community-governed investment fund consisting of blockchain advocates that provide genuine value and services to new projects by offering our expertise in four critical areas: Funding, marketing, engagement, and sustainability.
DAO Capital has a long-term vision towards the projects that we invest in, ensuring sustainability, growth, and security. Code is the basis of blockchain innovation, yet the communities surrounding the networks are what give them value. Our commitment extends far beyond simple investing. To date, Dao Capital has invested in numerous significant crypto projects such as Massbit, Nftfy, Xend Finance, Idexo, Aubit, Pollen, Yield App, YOP Finance, Archer DAO, Geeq, and SigmaDex.