Learn what CrowdFunding inefficiencies Desights Protocol solves
Issues with Current Crowdfunding in the AI Ecosystem
Centralization of Power and Resources
Dominance of Large Entities: Major corporations and well-funded entities dominate AI research and development, limiting opportunities for smaller developers and independent researchers.
Resource Inequality: Smaller teams often lack access to necessary resources, funding, and infrastructure, creating a significant barrier to entry.
Lack of Transparency and Trust
Opaque Funding Processes: Traditional crowdfunding platforms often lack transparency in how funds are allocated and managed, leading to mistrust among backers.
Risk of Fraud: The centralized nature of these platforms makes them susceptible to fraudulent activities, with limited mechanisms for accountability and verification.
Inequitable Distribution of Benefits
Limited Contributor Rewards: Backers and contributors often receive minimal rewards or recognition for their support, with most benefits accruing to project initiators.
Ownership Concentration: Centralized platforms typically concentrate ownership and control, marginalizing the contributions and interests of smaller stakeholders.
High Fees and Inefficiencies
Platform Fees: Traditional crowdfunding platforms charge significant fees for their services, reducing the overall funding available for projects.
Administrative Overheads: The centralized management of these platforms leads to administrative inefficiencies, delaying project timelines and increasing costs.
Inflexible Funding Models
All-or-Nothing Campaigns: Many platforms use rigid funding models where projects only receive funds if they meet their full funding goal, which can be challenging for innovative or niche AI projects.
Limited Funding Options: Traditional platforms often provide limited options for backers, such as one-time contributions without the possibility of ongoing support or equity stakes.
Barrier to Community Collaboration
Isolated Project Development: Current platforms lack mechanisms to facilitate ongoing collaboration and community involvement in project development.
Limited Feedback Mechanisms: There are few opportunities for backers to provide feedback or participate in project governance, leading to a disconnect between project teams and their communities.
Regulatory and Compliance Challenges
Legal and Regulatory Barriers: Traditional crowdfunding models must navigate complex legal and regulatory landscapes, which can limit their ability to operate globally and inclusively.
Lack of Standardization: The absence of standardized protocols and practices across platforms creates inconsistencies and complicates cross-platform collaboration and integration.
These issues highlight the need for a decentralized, transparent, and community-driven approach to crowdfunding in the AI ecosystem. Desights is developing a decentralised Crowdfunding toolkit to solve most of these problems.
Below Desights Components that encompasses Crowdfunding -
