N.B: In the spirit of full transparency, the following Coin Report on Decentr is a Sponsored Post.
Welcome to the 59th Coin Report. In today’s report, I will be assessing the fundamental and technical strengths and weaknesses of Decentr. This will be comprised of an analysis of a number of significant metrics, an evaluation of the project’s community and development and an overview of its price-history. The report will conclude with a grading out of 10. I hope you enjoy the read!
Prior to conducting my research for this report, I had heard a lot about Decentr, with many on Twitter very much vocal; this most certainly piqued my interest. The team then got in touch to organise this report and I was looking forward to the opportunity to do some quality research. The buzz initially generated around the project was enough to have led me to do some preliminary research prior to this, but the little I knew about Decentr was related to tokenomics, which we shall come to later in the report. Beyond this, I was unaware of which sector Decentr was operating within, nor did I have any idea on its strategies or technologies.
I hope this report will prove objective where it must be and fair on more subjective matters. For those who’d like to learn a little more about Decentr prior to reading this report, here are some primary links:
Algorithm: N/A (ERC-20)
Sector: Data Economy & Decentralised Finance
Exchanges: IDEX, Poloniex, Bidesk, Uniswap, MXC, Eterbase, Bamboo Relay, Bilaxy, Hotbit, TomoDEX, Hoo.com and BKEX
Decentr was incorporated in Q4 2018, with preliminary research on a data economy solution having been completed by Q1 2019. The team then began development later in 2019, before conducting several token sales in order to raise funding for sustained development.
In mid-2019, they raised $250k in a seed round, allocating seed investors 2.5% of the maximum supply of 1bn DEC – the native token for the Deconomy. Following this, in Q2 2020, Decentr raised ~$489k via a private sale and ~$485k via a public sale, for 30mn DEC and 19mn DEC, respectively. Cumulatively, the team have raised $1.225mn across the three rounds, in exchange for 7.4% of the maximum supply of DEC.
DEC was later issued post-public sale as an ERC-20 token, with its mainnet and MVP of the Decentr platform expected to be released in Q1 2021.
Of the maximum supply of 1bn DEC, 10% is allocated to the team; 10% to partners and advisors; 32.6% to the foundation; 40% to the ecosystem; and the remaining 7.4% were sold to investors.
Given that DEC itself has only been trading for a few weeks, despite Decentr having now been in existence for over a year, there is very little price-history available for us to analyse and certainly no distinct market cycles that have played out. Whilst I will dig into what is available in the Technical Analysis section, for now it will suffice to say that DEC formed its all-time low at 471 satoshis shortly after initial trading began in mid-July 2020, coinciding with its all-time low against the Dollar of $0.043. Its all-time high was found a few days ago in mid-August at $0.25, or 2,118 satoshis.
Decentr is seeking to address and resolve the many issues surrounding user data and data privacy, with the express purpose of providing a platform that attaches value to user data, facilitating data ownership by the individual. By doing so, Decentr will allow users to use their data – if they so wish – to reduce the cost of purchases of goods and services, with user data allowing for a ‘discount’ due to its intrinsic value. Moreover, this user data will also be able to secure better deals across Decentr’s range of DeFi products and services within the Decentr platform.
As stated in its whitepaper:
“Data is the new currency. Companies have been trading stolen user data for over a decade now – raw data that actually belongs to the user.
This means the majority of users cannot participate in the emerging data economy (worth USD $1.7TRN annually across G7 countries), because users do not own their own data and hence cannot extract value from it.
As a result, vast amounts of unstructured user data – personal, open and Public Sector Information (PSI) – remain out of reach of individual and business users, siloed away for profit by large companies, far from wider public benefit and social good.
Decentr LLC provides a web browsing experience that gives surfing the internet a payable value. We achieve this by facilitating with our token (DEC) the extraction of economic value from user data into fiat or digital currency.“
I look forward to evaluating its progress in this respect.
Let’s begin with some Metric Analysis:
Below are listed a number of important metrics, all of which are accurate as of 20th August 2020. For anyone reading this who has yet to read a Coin Report, it might be worth reading this section of the first report, where any potentially unfamiliar terms are explained. For any terms or metrics specific to this post, I will provide explanations besides the figures.
Price: $0.215 (1,828 satoshis)
Circulating Supply: 61,429,883 DEC
Total Supply: 1,000,000,000 DEC
Exchange Volume: $2.558mn ($1.12mn excluding wash)
Network Value: $13.187mn (1122.94 BTC)
Maximum Supply:1,000,000,000 DEC
% of Max. Supply Minted: 100%
Network Value at Max. Supply: $214.68mn
Exchange Volume-to-Network Value: 19.4% (8.5% excluding wash)
Average Price (30-Day): $0.1447
Average Exchange Volume (30-Day): $793,469
Average Network Value (30-Day): $8,888,904
Average Exchange Volume (30-Day)-to-Network Value: 8.93%
Volatility* (30-Day): -0.2161
Average Daily On-Chain Transactions (30-Day): N/A
Average Daily Transactional Value** (30-Day): N/A
NVT*** (30-Day): N/A
% Price Change USD (30-Day): +101.5%
% Price Change USD (1-Year): N/A
USD All-Time High: $0.248
% From USD All-Time High: -14%
Premine % of Max. Supply: 0
Premine Location: N/A
Liquidity (calculated as the sum of BTC in the buy-side with 10% of current price across all exchanges): 4.28 BTC (excluding Uniswap, which has $913k of liquidity)
Liquidity-to-Network Value %: 0.38%
Supply Available on Exchanges: 4,075,005 DEC (excluding Uniswap)
% of Circulating Supply Available on Exchanges: 6.63%
*Volatility is calculated by taking the average price over the given time-period, calculating the difference between it and the highest price and it and the lowest price over that same time-period, and multiplying those figures together. The closer to 0, the less volatility during that period, and vice-versa. Read this for more on volatility.
Supply Emission & Inflation:
Block Reward Schedule: N/A (see vesting schedule below for token unlocks, from which emission is derived)
Average Block Time: N/A
Current Block Height: N/A
Annual Supply Emission: 128,580,000 DEC (for the forthcoming year as per vesting schedule) (2,350.44 BTC at current prices)
Annual Inflation Rate: 209.31% (maximum for August 2020 – August 2021 – no emissions until 2021, however)
Circulating Supply in 365 Days: 190,009,883 DEC (maximum)
The following details were taken from this source.
Public Sale Period: 13th July 2020
Total Tokens: 1,000,000,000 DEC
Total Tokens Available for Public Sale: 19,000,000 DEC
Total Raised: $485,060
Average IEO Price Per Token: $0.026
Total Tokens Sold: 19,000,000 DEC
Decentr raised funding via three rounds: a seed round, that raised $250k in mid-2019 for 2.5% of tokens; a private round in July 2020 (held in conjunction with the public sale) that raised $489k for 3% of tokens; and a public sale that raised $485k for 1.9% of tokens. Of the seed tokens, 75% of the initial
50% of unlocked tokens will be used for DEX liquidity, amounting to 9.375mn DEC. The remaining 50% of seed tokens is locked for 3 months. Public and private sale tokens are fully unlocked, which means that the circulating supply of Decentr is 61.5mn DEC until 2021. The full vesting schedule is visible above.
Address Count: 2,841
Supply Held By Top 10 Addresses: 0.78% (7.7mn DEC)
Supply Held By Top 20 Addresses: 1.16% (11.6mn DEC)*
Supply Held By Top 100 Addresses: 2.21% (22.1mn DEC)
Inactive Address Count in Top 20 (30 Days of No Activity): 3**
*This excludes exchanges and is calculated as a percentage of the maximum supply. There are 6 exchanges in the top 20 controlling 20.897mn DEC (across MXC, IDEX, Poloniex, Uniswap, Hotbit and a second MXC address), which is 34.17% of the circulating supply.
**Again, excluding exchange addresses, and replacing these with other privately-owned addresses further down in the rich-list.
There is quite a lot to work through here, so I will refrain from any preamble.
I’d usually begin with a look at transaction-related data, but given that the bulk of the transactions occurring at present are Uniswap or other exchange transactions, it is infeasible to separate these using Etherscan; moreover, the Decentr platform has not yet launched, and until that point the on-chain transaction data is pretty meaningless.
So, beginning with the remaining General metrics, let’s take a look at Volatility:
I calculated this to be -0.2161 for the past 30 days; this places Decentr 9th-highest amongst prior reports for 30-day volatility, indicating that price is most likely mid-cycle, rather than within a tight consolidation range in which DEC may be being accumulated. That said, given that the token has only been trading for a little over a month, a higher degree of volatility is expected.
Next up, we have the metrics relating to Liquidity:
Firstly, I found that there was 4.23 BTC of buy-side liquidity within 10% of current prices to be found across all exchanges (excluding Uniswap), equating to 0.38% of its Network Value. This places Decentr joint 15th-highest among prior reports – in the top quarter– indicating relatively high demand at current prices. Moreover, there is $913,477 of liquidity currently on Uniswap, which is magnitudes higher than that available on centralised exchanges at present.
As for sell-side liquidity, I found that 4,075,005 DEC was available for purchase in the orderbooks, equating to 6.63% of the circulating supply. This is the 3rd-highest figure recorded in these reports, suggesting that there is a relatively high degree of speculative holding of DEC at present, as current holders are willing to sell a relatively significant portion of the circulating supply. Moreover, there is 2.183mn DEC in the Uniswap address on the rich-list, equating to a further 3.55% of circulating supply. In general, this is too be expected when a project has just conducted a public token sale and only listed that token for trading a few weeks ago.
Moving onto volume, Decentr is reported to have traded $2,558,682 of Exchange Volume over the past 24 hours, equating to 19.4% of its Network Value. Though not as much as is often found in these reports, much of this does appear to be wash trading (though it is no fault of Decentr’s but rather the exchanges themselves), with a more accurate figure likely to be $1,120,973, equating to a still-impressive 8.5% of network value. Further, Average Exchange Volume was $793,469 for the past 30 days, equating to 8.93% of Decentr’s Average Network Value for the same period. This is the 13th-highest figure recorded in these reports and highly indicative of speculative interest.
Now, let’s take a look at Supply Emission:
Given that DEC is an ERC-20 token, its entire maximum supply of 1bn DEC is technically already in existence, though the bulk of it is currently locked in a smart contract. To be precise, 926mn DEC is currently locked in the #1 address and 12.5mn DEC in the #2 address. As you will have seen in the vesting schedule pictured in the relevant section above, we can work out the rate at which DEC will join circulation for the forthcoming year. Using this schedule, I calculated that ~128,580,000 DEC are expected to be unlocked between August 2020 and August 2021, equating to 2350.44 BTC at current prices. This would give Decentr an annual inflation rate (for the first year) of 209.31%, assuming all unlocked tokens join circulation during that period. This would put Decentr’s circulating supply at a little over 190m DEC in 365 days.
Now, more important than the nominal figures for emission alone are their relationship with traded volume and liquidity.
If we take the above figure of 128.58mn DEC expected to join circulation in the forthcoming year, we can work out that average daily supply emission during that period will be 352,274 DEC. This equates to 6.44 BTC, or $75,626-worth. Given this, Decentr’s wash-accounted 24-hour traded volume of $1.12mn is 14.8x greater and its average daily volume for the past 30 days is 10.5x greater than the expected daily emission. However, its buy-side liquidity is 2.2 BTC short of expected average daily emissions, but this is more than made up for by Uniswap liquidity of ~77 BTC. In short, as long as current liquidity levels and volume traded remain where they are (or grow), there is no reason to expect the supply emissions for the forthcoming year to cause any significant headwinds to price growth. That said, should liquidity and volume fall from here, those emissions would start to look ugly for price in the mid-term.
Finally, let us take a look at some Distribution:
Using the rich-list, I found that there are currently 2,841 holders of DEC.
Of the maximum supply of 1bn DEC, the top 10 currently control 0.78% (7.7mn DEC); the top 20 control 1.16% (11.6mn DEC); and the top 100 control 2.21% (22.1mn DEC). This is, of course, excluding the #1 and #2 addresses, which are currently locked and contain 926mn DEC and 12.5mn DEC, respectively. If we look specifically at circulating supply, the top 10 non-exchange addresses control 12.65%; the top 20 control 18.91%; and the top 100 control 36.02%.
Among the top 20 non-exchange, privately-owned addresses, 3 were inactive over the past 30 days, whilst 7 were distributing and 10 were accumulating.
And that concludes this section. Onto the Decentr Community:
There are two primary aspects of community analysis: social media presence and Bitcointalk threads. I’ll begin with the former before moving on to the latter.
Concerning social media presence, there are four main platforms to examine: Twitter, Facebook, Telegram and Discord.
Decentr is present on two platforms: Twitter and Telegram. To begin, let’s look at the various social metrics that I calculated from the Decentr Twitter and Facebook accounts:
Twitter Followers: 4,458
Average Twitter Engagement: 2.69%
Facebook Likes: N/A
Facebook Posts (30-Day): N/A
Average Facebook Engagement: N/A
As usual, I will be using RivalIQ‘s social benchmark report for evaluation purposes.
Decentr has a relatively small audience on Twitter of 4,458 followers, which is in the bottom third among prior reports. Its engagement rate is very impressive at 2.69% on average, which is 6th-highest among coins previously reported on and higher than most of its equivalent audience sizes. Relative to global benchmarks, this is 60x greater than the average across all industries of 0.045% and 99.6x greater than the average in the Tech and Software industry of 0.027%. I think the team are doing a fantastic job here and I expect with such a vocal community that the audience will continue to grow over the coming months.
There is no Facebook page for Decentr.
There is no Discord group for Decentr.
There are 2,907 members of the Decentr Telegram group.
Below, I have summarised my key takeaways from the activity of the group over the past week:
- The community are very active, with near-constant daily discussion
- The team are also prompt in responding to community questions and provide support where required.
- Staking is expected to be released soon for DEC.
- PDV, or Personal Data Value, is the mechanism by which user data is attributed value on Decentr. It is described as the sum total of all the data generated as a user browses the web, with Decentr securing this data to facilitate user data ownership and thus the market value of this data is the user’s alone.
- PDV itself will be handled client-side, so all users can utilise it to their benefit on all purchases of goods and services on all websites on Decentr. Moreover, each purchase made makes the next identical purchase cheaper for the user via PDV.
- Long-form Medium articles are pushed to the group to keep the community updated on ongoing developments, use-cases etc. I will cover these in later sections.
- There is a rumoured partnership with Chainlink; nothing concrete on this publicly-available just yet from what I can gather.
- Increased PDV will allow for greater APY on DeFi solutions – this is an important point, as it differentiates Decentr from many projects involved in decentralised finance.
- The circulating supply will remain fixed at 61.5mn DEC until 2021.
- Though the natural observation to make for many is BAT (Basic Attention Token) as a competitor, Decentr do not see BAT as a competitor, as Brave allows for users to be paid to watch ads, whereas Decentr secures user data and allows for that data to be developed, exchange and reused as a decentralised dataflow between applications across the web, allowing for user data to become the equivalent of currency.
- Decentr will facilitate dLoans, which will allow users to secure a more cost-efficient deal based on their PDV.
- There will be a partnership announced soon with a fiat gateway provider.
- Data collection will be user-driven; i.e. it is entirely the choice of the user whether their data is collected to build towards their PDV or whether they browse privately.
There is also an unofficial Decentr trading community Telegram with over 1,000 members.
There is no BitcoinTalk thread available for Decentr.
Overall, though the community is clearly vocal and is certainly growing, I feel that more of an effort is required to ensure that all relevant platforms are maintained, as the compounding effect of having growing communities on several platforms cannot be understated for a new project.
And that concludes my evaluation of the Decentr community.
Let’s take a look at its development:
For the following Development analysis, I will be evaluating project leadership, the website, the roadmap, the whitepaper, the wallets and finally providing a general overview:
There are 11 team members listed on the website and 14 team members listed in the whitepaper.
More specifically, the team is comprised of:
- Nikita Anikeev, Co-Founder and CTO, with experience in Enterprise Web development, Mobile Applications and Project Management
- Paul Sluszko, Co-Founder and COO, previously working for UK Courts and national UK charities
- Rich James, Co-Founder and CCO, experienced in technical, conceptual and H2020-H2027 bid writing
- Maksim Ramanouski, Lead Developer, AWS & GCP-certified, experienced in media, advertising and publishing domains
- Ivan Kantaef, Senior Developer, 10+year experience in mobile development
- Alex Majorov, Senior Developer, 5+ years in blockchain development
- Prof. Juan Manuel Corchado, Software Engineer, Director of the BISITE Research Group of University of Salamanca
- Dr. Javier Prieto, Software Engineer, managing R&D programs at the AIR Institute and Secretary of the Foundation
- Diego Valdeolmillos Villaverde, Software Engineer
- Agustín San Román Guzmán, Research Assistant, at BISITE Research Group
- Lee Hirschmann, Lead Marketing Strategist, previously DDB Needham, McDonalds, WPP
- Rodolfo Grimani, Communications Consultant
- Gianluca Rossi, R&I Consultant
- Lorenzo Impronta, R&I Consultant
Overall, it is a fairly small team but with plenty of experience in all relevant fields and global reach.
The website can be found here.
The website is very well-designed and modern, as well as being seamless to navigate as all relevant information is found native to the homepage. That said, it could be more comprehensive, but detailed documents are available and clearly linked. Regarding design, it could be better branded, as, other than the logo in the header, it isn’t particularly distinguishable from other modern token sites. The site, on the whole, provides a good basis for new users to do further research on Decentr.
More specifically, users are introduced to the concept of the Deconomy right off the bat, with the tagline Your Data is Value. Use it to pay less online. This immediately draws my attention due to the clear value proposition for the end-user; monetary value derived from data ownership that is currently being stolen and sold across the web. Below, we find a clear mission statement, which is simply that Decentr is seeking to return control of data to the end-user; moreover, this data is attributed economic value. Via Decentr, users will be able to control their own data and moreover use that data to offset the price paid for goods and services, due to the intrinsic value of the data itself, in effect providing a discount for users. Links are provided here to two technical documents, the layman’s whitepaper (which I shall cover in a later section) and an introductory video.
As we scroll down the site, we come to the What, which is the mechanism of the Decentr platform and its deconomy. Here, we are introduced to the four key points that make Decentr work:
- Firstly, the Decentr platform allows for ownership of user data, where visits online are stored securely in your personal DecID.
- Secondly, this secured data is utilised as a currency on Decentr.
- Thirdly, Personal Data Value (PDV) is the mechanism by which this secure data facilitates an exchange rate, of sorts, between fiat and cryptocurrencies and your purchases on the platform.
- Lastly, your PDV fluctuates based on positive or negative engagements whilst you use the platform; higher PDV is driven by higher engagement, which allows for more heavily discounted purchases of goods and services, as the value of your data is perceived to be higher than a user with low PDV.
This will all be facilitated via a Decentr web browser, which will host user-focused applications that facilitate purchases using user PDV.
Further down the homepage, we also find detail on the roadmap (covered below) and the team (covered above). More importantly, we find a useful FAQ, although this could certainly be more comprehensive. We also find links to the Medium blog, of which there are several posts I’d like cover towards the end of this report, as they reveal much about Decentr, as well as to Twitter and Telegram.
Overall, though the website is well-designed and concise, as well as intriguing enough to prompt further reading, it would be more beneficial to users to have more detailed sections native to the site on the various components of the Decentr ecosystem.
The roadmap can be found here, native to the website homepage.
It is presented chronologically, as a visual timeline, like most roadmaps, beginning with the incorporation of Decentr in Q4 2018. Beyond this, the roadmap itself is relatively vague; although goals are presented clearly and segmented by quarterly period through to Q1 2021, there are no further reading links provided for any of the goals, nor any integrated details or progress markers. It would be super helpful for new users navigating to the roadmap to have at least some detailed sources available for further reading.
Regarding the roadmap itself, there also isn’t a great deal pointing towards the future, as post-token sale in Q2 2020, there is only the integration of fintech/DeFi/data-as-value functions in Q3 2020, the implementation of the Decentr consensus mechanism in Q4 2020 and the MVP in Q1 2021. Of course, all eyes are on the MVP or mainnet release in early 2021, but it would be great to have a little more indication native to the roadmap as to where Decentr is expecting to direct resources moving forward beyond this.
Overall, this roadmap is a little too brief and vague to be of much use to potential new users or speculators and it needs a more thorough update, in my opinion.
The 31-page non-technical whitepaper can be found here.
I have summarised my key takeaways from the whitepaper below:
- User data is as valuable as money, with companies trading stolen user data for many years that should be retained by the user.
- The data economy is worth $1.7trn globally; this value does not directly benefit the user at present.
- Decentr is seeking to fix this significant imbalance by attributing value to user data, securing data and facilitating data ownership for the individual, with a view to enable users to utilise this data to offset purchases of goods and services.
- The first key concept here is Data As Payable Value, which is to say that, on Decentr, data is retain by the individual within their DecID, which itself is secured by Decentr.
- Personal Data Value (PDV) is the mechanism by which this user data is attributed economic value, acting as an exchange rate of sorts between currencies that is unique to the user and fluctuates depending on the user’s engagement on the Decentr platform, whereby positive engagement increases a user’s PDV, enabling more cost-effective purchases and vice-versa.
- Decentr believe that a “true” data economy must ensure that all currencies are controlled at the level of the individual; data becomes a means of securing an exchange rate, which means that data itself becomes a currency.
- All of this will be facilitated via the Decentr Web Browser and its browser add-on, which will allow users to access web 3.0 applications in which a user can choose to use PDV to help pay for goods and services, whilst also accessing DeFi features such as dLoan and dPay.
- The platform itself will utilise the DecID, which records all user data but can only be accessed by the individual as opposed to any third-parties. This data is decentralised and secured by Decentr. The data contributes to the fluctuates in PDV, facilitating an individual exchange rate, and this PDV offsets the value of purchases.
- Regarding innovation, the primary innovation is to “eliminate the role of money-currency (fiat or digital)”, as this becomes redundant in a circular data economy.
- Importantly, this will be facilitated by their novel consensus mechanism – Proof-of-Engagement – which be 98% more energy efficient than Proof-of-Work.
- Current partners include Holochain, Black Edge Capital, BISITE and Rotechnology.
- We also find some team information and a brief roadmap, both of which are covered above.
- Following this executive summary, we come to the Introduction. Here, the primary concept introduced is the Internet of Value, which is where economic exchanges are effectively instant, like information exchange currently is, for which Decentr’s proposed solution is the aforementioned data-as-currency, as opposed to money-as-currency.
- One of the primary problems with a data economy being constructed and an Internet of Value being sustained is that data valuation and transaction is extremely difficult at present, with Decentr’s solution being the first to reconcile these issues by re-purposing user data as currency.
- As data on Decentr is both secure and immutable, user data has intrinsic value and worth.
- Data sharing and storage is not a data economy, thus current solutions are merely B2C or B2B services – the exchange and attribution of economic value to data is the crux of this.
- Decentr will function as open software on which developers can build data sharing and storage solutions (such as those that currently exist) but it will also act as a decentralised user-layer, allowing for a completely decentralised web 3.0/web 4.0 solution.
- Regarding the web browser and platform, Decentr will comprise of a comprehensive suite of tools and features, such as the DecID, dPay for transactions, social media services such as dNews, dChat and dPost, and more.
- While using the browser, all user activity is recorded immutably and then credited with PDV. Decentr’s Multi-Layer Authorisation coupled with its dCloud create an environment in which increased user activity facilitates increased user data security, thus increasing the value of that data, unlike the current data storage and sharing paradox.
- Cooperative-game Theory: This is the means by which PDV is attributed economic value via community consensus, where Proof-of-Engagement is the consensus mechanism. Decentr’s deconomic theory proposes to achieve fairness within PDV via relative numerical value as opposed to absolute. There is no trusted third party assigning value.
- Decentr Tokenomics: DEC is the native token to the Decentr platform, where DEC will support data exchange between all currencies. If a user’s PDV is 1.1 and DEC is equivalent to $1, then purchases made will cost the user $0.90 for a $1 product.
- The Decentr platform will have an integrated dEx, where users will be able to exchanged fiat and digital currencies utilising their PDV.
- The 400mn DEC allocated to the Decentr Reserve will never be sold on the open market, instead being utilised to regulate the internal deconomy, stabilising the dFintech suite of products and services.
Overall, the whitepaper is extremely thorough, though remaining concise, and it proves to be an excellent resource for potential new users. Two other highly-technical documents are also available on the website for more precise details on the mechanisms that underpin the Decentr platform.
Having spoken to the team, I am aware that a new, detailed roadmap is in the works and will be released in the coming weeks.
As DEC is an ERC-20 token, it can be stored on any compatible wallet, including hardware wallets like Ledger and Trezor, web wallets, mobile wallets and desktop clients.
To conclude, I’d like to take a more detailed look at some recent Medium articles that flesh out the many facets of Decentr:
- Optimising PDV: PDV is entirely user-centric, where the Decentr user layer will contain a dashboard that allows the consistent monitoring and optimisation of PDV, all at the express choice of the individual. If you don’t want to improve your PDV, there is no requirement to do so and your data can remain entirely yours. If you do, the options and mechanisms are at your disposal.
- Under-Collateralised Loans: Currently, most DeFi loan solutions are over-collateralised, meaning that the number of potential beneficiaries of these loans is significantly reduced. Risk scoring or risk estimates can be used to provide under-collateralised loans, but there are inherent problems with this that lead to smaller pools of borrowers and lenders. Decentr solves this with dLoans, where loans can be under-collateralised due to the user’s DecID storing data as economic value via PDV, as aforementioned, which can be used to secure loans on the platform. PDV thus becomes a refined risk scoring solution, where high PDV can allow for zero-collateralised loans, whilst also decreasing the interest rates on repayments. Users will also be able to loan out DEC in their dWallets at an aggregate system APR, but users with high PDV will be able to leverage this to receive higher interest rate returns; moreover, this will also be applicable to other DeFi solutions, such as Aave and Compound.
- Revenue Streams: The three primary revenue streams that Decentr are targeting are the Banking/Payment Service Provider industry, where Decentr will have 150,000 PSP customers on product launch due to a connection with the #2 payment service provider globally by volume, with Year 5 projections at $1mn of turnover daily based on a 0.001% market share on 2% fees; the Bricks and Mortar Supermarket industry, by facilitating the digitalisation of supermarket supply chains and operations and allowing these supermarkets to leverage this data as an asset, where Year 5 projections are $114mn of annual revenue based on 0.3% market share of offline groceries; the Online Advertising industry, where Brave is currently the primary competition but faces the problem of not being 100% decentralised due to its pay-to-surf model on a third-party medium of exchange. Decentr’s PDV concept solves this by crediting user data with payable value for engaging with ads. The more engagement a user has with the ad, the greater the benefit to PDV, thus encouraging sharing, liking, commenting and other forms of engagement. Circularity aligns advertisers with users here.
- Bank of England: Decentr were asked to produce a document for the Bank of England’s cryptocurrency unit with regards to a central bank digital currency for the UK and how Decentr’s technology may fit in. In this document, Decentr outline how a UK CBDC issued on Decentr would future-proof the UK economy by supporting a real-world economy in which fiat money has renewed strength (itself a symptom of supporting a data economy that increases the liquidity of the UK monetary base) and by allowing every UK citizen to become part of the digital economy. Economies redouble each other in this manner, making the view of a preferable money type redundant.
And that concludes my fundamental analysis of Decentr.
Let’s take a look at its brief price-history in conclusion:
(N.B: This analysis is accurate as of 22nd August 2020)
As mentioned at the beginning of the report, there isn’t a great deal of price-history available to us here, but there is somewhat of a trend beginning to form, though admittedly it is early days yet.
Looking at DEC/BTC, here we can see that price immediately formed its all-time low at 471 satoshis after early trading in mid-July 2020, before rallying to a high of 2,012 satoshis just a couple of weeks later. Price then fell off and found new support at 900 satoshis, where it formed a base for a few days before rallying to 1,618 satoshis earlier this month. Volume began to pick up here as price retested the prior consolidation above 900 satoshis and bounced off trendline support, rallying to a new all-time high at 2,118 satoshis just a few days ago on increasing volume. Price has since fallen back below 2,000 satoshis, pulling back towards the previous high at 1,618 satoshis to retest the level as support. Looking at this – and considering the fundamental evaluation of the report, particularly on mid-term tokenomics coupled with the MVP scheduled for early next year – I am absolutely a buyer below 2,000 satoshis, ideally incrementally buying as price perhaps moves back towards trendline support. As this is a low-cap project with particularly intriguing fundamentals moving forward, I am allocating a fixed-percent position with no stop loss – a moon-or-die – with a view to hold for at least 6 months.
I’d also like to add that – unlike for many projects I come across in this space – the pathway to significant success is quite clear for Decentr. If they are able to hit the ground running following their product launch, it seems absolutely within reason that this could be a top 25 token project within a few years and sustainably so. There are clear solutions to very real problems and so success is primarily predicated on adoption of these solutions moving forward.
And that concludes my evaluation of Decentr.
This report is now approaching 6,000 words, and it is time to draw it to a close.
My final grading for Decentr is 8 out of 10.
Here, you can find my grading framework, for reference.
Lastly, here is a link to a Google Sheets file with any significant data from previous reports compiled for cross-comparative purposes. I will keep this updated as I continue to write these reports.
I hope this report has proved insightful and that you’ve enjoyed the read! Please do feel free to leave any questions in the Comments, and I’ll answer them as best I can.