Introduction (originally posted here)
In the linked article I guided you through the process of utilizing the Airdrop Assessment tool to analyze projects and develop your personal plan for using, selling or holding airdropped tokens. If you have not already read it, please take a few minutes to do so. In this new series I will walk you through my thought process while using the tool and provide my own personal opinions of various projects. As always, it is of utmost importance that you do your own research and form your own opinions about these projects. I will provide you with the links so that you can easily find the necessary information. If you are uncertain about which airdrops you may have received and should anticipate in the future feel free to use this spreadsheet. It is also a useful tool to track your personal thoughts on each project to avoid repeating due diligence and coming down with a case of “airdrop fatigue”. I will continue to update the spreadsheet with the latest information as it is released.
HireVibes — Overview
HireVibes hopes to disrupt and decentralize the recruitment agency business sector which currently enjoys $248,000,000,000 USD of annual revenue. Recruitment firms charge a large fee, 15-25% of an employee’s annual salary, to match quality job seekers with employers looking to hire. The HireVibes Dapp will allow job-seekers and referrers to be rewarded directly instead of the recruitment firm, while saving the employer from the exorbitant recruitment fees. If a candidate is successfully identified by HireVibes and subsequently hired, employers will be charged 7.5% of the new hires salary, 10% if they requested a Recruitment Facilitator assigned to their request. New hires will be rewarded with a 4% token reward (HVT Tokens), which is split evenly with the referrer if there is one. New hires will also be able to allocate an additional 1% reward to a charity of their choice.
Upon each successful hire, 1.25% of the salary will be dropped (daily if a minimum threshold is met) to the HVT holders. In addition, 1.25% will go to a Worker Proposal fund which can be voted on by the HV Decentralized Autonomous Community (DAC). These proceeds can be used for a variety of proposed initiatives, improvement of the platform, education, advertising/promotions, or to be used for additional dividends. Holders will be incentivized to vote; if they don’t vote for four straight weeks, their rewards will be reduced to 10% and the remaining 90% will go into the DAC Worker Proposal pool.
HireVibes — Chance of Success
What is the project’s goal and is there a reason the project should be developed on the EOS blockchain?
Per the whitepaper:
“HireVibes Dapp aims to redirect the flow of wealth going to centralized agencies into a river of resources for people and the planet using cryptocurrencies, smart contract technology and swarm intelligence methodologies. HireVibes will be an open source crowdsourcing jobs Dapp on the EOS.IO software. HireVibes Dapp will be governed by the HireVibes Decentralised Autonomous Community (DAC) using HireVibe Tokens.”
This goal seems very reasonable, the fees charged by agencies are high and the industry appears ripe for disruption. The DAC and tokenization aspects appear to be a perfect fit for blockchain.
Is the project team clearly identified or anonymous? Have they led or been involved in any other blockchain/tech projects? Does the team have expertise in the field which they are launching their project?
These questions are combined for the HireVibes project because they have done such an excellent job of identifying themselves, you can find the team overview here. Many of the team members have included their LinkedIn profile so that you can see their professional backgrounds. They have very broad blockchain, smart contract and related experiences. Their team also includes Kyle “The Awakenment” who has been a visible contributing member of the EOS community with many informative videos on YouTube. The only negative, they have not clearly identified anyone on the team that has relevant corporate human resources or talent agency work history, which is a clear gap. They may experience issues in obtaining the trust of large employers.
Did the project receive funding from a third party or EOS related Venture Capital Group for development?
There was no indication of such funding on the HV website. Keep in mind this is not a negative, but would be a vote of confidence if a VC thought the project had value.
Does the project have a sensible white paper and is their website functional and user-friendly?
The whitepaper is easy located and surprisingly straightforward and understandable. It was both sensible and contained all the necessary information to grasp the projects initiative. The website is basic, but gives you the necessary information with a few videos and infographics. Easy to explore without extraneous and unnecessary fluff.
What will success mean for the project and token holders.
If the project succeeds, the HV Dapp will gain mainstream adoption with corporate employers. If this occurs, employer will have to acquire HVT to pay for the services the Dapp offers. As this scales up and the demand grows, HVT holders can expect to see capital growth and receive a dividend. They will also be able to have a voice in many of the worker proposals.
HireVibes — Level of Excitement
Is this a project that you will actively use?
This one I can answer with a resounding YES! I’m currently an employee of corporate America and thus I have many contacts throughout the business world. I already assist colleagues, from time-to-time, by sending them job opportunities for which I think they may be a good fit. Occasionally they will return the favor, it’s a good practice to employ. If I can earn an additional incentive for performing a task which I already am doing for free, then count me in!
Do you want to join this project’s community?
I intend to utilize the HV Dapp, when coupled with the fact that it is guided by a DAC, it incentivizes me want to be an active participant of the community to ensure that my voice is heard. In addition, HireVibes effectively punishes those passive holders that are not active by reducing the amount of distributed dividend they will receive if they do not vote for worker proposals on a regular basis. The passive income through the 1.25% fee distribution back to token holders increases my interest in retaining the tokens as a long-term investment.
Would you recommend that a friend or family member participate in the project or buy its tokens?
In this case I would absolutely recommend HireVibes to coworkers and industry colleagues.
HireVibes — Conclusion
So, we’ve run through all the questions, where does that leave us? My overall level of excitement for HireVibes is high, and I think that the project has a high level of success. That puts them squarely in the Lunar Launch section of the Assessment Grid. What does that mean in terms of how I will treat their tokens? With the referral fees and fee dividends, I plan on holding my HV tokens for the long term. If I don’t believe that the market is accurately valuing the project, I may pick us some additional tokens along the way. This said, I will continue to watch the project, if I feel that they hit some roadblocks that they may not be able to overcome, I will adjust my strategy accordingly.
Airdrop Assessment Grid
In going through this process, I have developed a few additional criteria I will add to future airdrop assessments. Notably, I will look at the total token supply as compared to the total amount airdropped to the community. Of equal importance is how many are held by the development team and how long they take to vest. Why do we care about these metrics? If the percent airdropped to the community is a relatively small amount as compared to total supply, the team does not place as much value on the EOS community and your proportional stake is smaller than in EOS. A good target range to show good faith would be airdropping 40%-80% of the token supply to the EOS community. With regards to the tokens retained by the developers, you want them to have skin in the game for some minimum amount of time in the future. If they have the ability to create a lot of publicity and pump the price, then subsequently dump their tokens and exit the project, then there is no reason to trust that team will put the effort into the project to ensure it excels. Block.One is a great example of this, they retained 10% of EOS tokens which are uniformly unlocked each year over a decade. In my opinion it is a good idea to have the development team’s tokens unlock over a minimum period of three to five years.
How did HireVibes hold up to this added level of scrutiny? Here is their token distribution model. The project team is dropping 71.43%, 250 Million out of 350 Million, of their tokens to all EOS holders. What a great ratio! They are giving most of their value and DAC control directly to the community. Another 50 Million tokens, 14.285% of total supply, will be put into the DAC treasury contract to be voted on by the community. If you think about this, they are effectively giving those tokens to the community, not directly in terms of airdrops, but in terms of a voice with regards to their use. The HV launch team is retaining just 50 Million tokens, and honestly, if anything this might be a tad small at first blush. I want them to have a lot riding on the project. When you take a step back though, there are 10 members on the launch team, and while their allocations may not be equal, that is 5 Million tokens on average per member. That should motivate them to do what is best for the project. The only negative in my eyes is in their token vesting schedule. The team receives 40% of their tokens at the Dapp launch, and then 20% every six months, which gives them access to 100% of their tokens in 18 months. I would much rather they be incentivized to be actively involved for a longer period. This does not mean that they will no longer participate on the project, or will sell off their tokens, but it does give them that opportunity.
Overall, this does not change my opinion of the HireVibes project and I intend to hold. Look for these additional criteria to be included in the analysis for the subsequent series articles.
What do you think?
Did I miss any criteria you feel are key when performing a high-level project review? Do you disagree with my thoughts on HireVibes? Please write a response to this medium post, reach out to me on twitter @moore_chaney or on Reddit and Telegram via the username RiverKingfisher. I look forward to hearing from you.