A global team of leading Bitcoin and Blockchain developers is launching an Initial Coin Offering (ICO) to raise investment funds for a new insurance product called InChain, a platform for insuring assets stored at crypto-exchanges and wallets or more generally, a cecentralised insurance platform based on Ethereum smart contracts.
The InChain team plan is to first build Blockchain insurance products for the cryptocurrency community then expand into more comprehensive industry solutions for the general insurance industry within two years.
The project’s ICO is to kick off October 12 and open to all investors.
InChain is a decentralised insurance platform that mitigates risks associated with total or partial losses of crypto assets due to cyber attacks and hacks. They have placed Ethereum smart contracts at the core of the platform so it requires minimal human involvement and it implements insurance and insurance bond servicing mechanisms as smart contracts.
A key feature of the platform is that the insurance fund is managed in line with the principles of distributed autonomous organizations (DAOs). To manage the insurance fund efficiently and earn healthy returns for Inchain token holders—as well as to pay out bond coupons—a certain part of the fund is invested in various assets and ventures in accordance with the strategies approved by token holders.
All InChain token holders are eligible to propose and vote for investment strategies. The return on investments is to be allocated, depending on votes, as follows:
- Dividends paid to token holders;
- Reinvestments made to the investment fund;
- Additional liquidity reserves placed in cold storages for paying out bond coupons and insurance compensations.
In addition, token holders may propose their own investment strategies and ask token holders to vote for those. If enough token holders support the proposals, the investments will be reallocated accordingly.
Everyone who purchases Inchain tokens during the ICO receives them to his personal account. Straight after the ICO completion, all Inchain tokens will be transferred to token holders’ wallets. There are two ways to access the tokens: Inchain web wallets or MIST Ethereum wallets. They will post detailed instructions for both options.
At the same time, they will launch the Inchain blockchain explorer and list the tokens for public trading at external cryptocurrency exchanges and will make their open APIs designed for Inchain token interactions available as well.
Distribution: 100 million in total, 85 million distributed to users, 15 million for core activities.
• 1 million for preICO and postICO bounties;
• 5 million for strategic partners, consulting and auditing;
• 9 million for the development team;
Initial Rate: No set rate; 85 million will be distributed based on the total amount collected.
Discounts for early investors:
• Day 1-7 20%;
• Day 8-14 10%;
• Day 15-21 5%;
No discounts after Day 21.
The following mechanisms maintain the financial stability of the platform:
- InChain transfers risks to investors by issuing insurance-linked bonds. Investors take on the underlying risks and receive coupons as rewards.
- The insurance funds are managed by token holders, who choose investment strategies through voting. Investment returns are spent on bond coupons and then dividends are paid to token holders.
“The basic principles behind InChain’s organisation and functioning are security and stability enhancement for cryptoeconomy in general, as well as heating up the world community’s interest towards Blockchain technology and cryptocurrencies,” the project’s founders Sergei Primachik and Dmitri Lazarichev said.
The platform would enable any cryptocurrency user to ensure their assets against hack, technological risks and other problems that may entail full or partial loss of the assets. Additionally, InChain offers investment options and governance of an insurance fund via a DAO.
Apart from creating tools to insure the risks, the team has elaborated a system of insurance crypto-token bonds. It enables any player of cryptoeconomy to invest by purchasing insurance bonds and receiving passive revenue in the form of coupon payments for obligations in exchange for taking risks in case insured events occur.
“InChain provides tools for two user groups: those who own cryptoassets, like Bitcoin or Ethereum, and wish to insure their risks; and those willing to invest their cryptoassets in order to gain profits from the investment,” the platform’s representatives elaborated.
With Inchain’s convenient and highly intuitive interface, users set desired insurance parameters, and the platform will generate the appropriate smart contracts. The contracts manage the insurance policies and any payments made on claims. Inchain insurance oracles constantly monitor insured events.
Inchain provides three types of analytics:
- Insurance analytics for observing the number of policies issued, their durations, service providers and rankings, as well as overall market snapshots and news.
- Bond analytics for watching the current states of initial and secondary markets, bond yields, rankings, maturity and durations.
- Insurance fund analytics for assessing ROI on different portfolios, asset allocations and news within the insurance industry.
Their decentralised trading exchange provides a variety of investment opportunities for users who want to buy and sell bonds and efficiently manage their fixed-income crypto portfolios.
All Inchain token holders may proactively participate in managing the insurance fund. Instruments for transparent voting ease the process of reaching consensus.
To recap, InChain incorporates the following items:
- Decentralization with smart contracts
- Decentralised insurance as risk mitigation tool for cryptoeconomy
- Insurance token bonds as investment tools
- A DAO to manage the insurance fund’s investment activities.