Thanks a lot for actively participating in the Butterfly Protocol AMA held on 27th January 2021 at the Game of Bitcoins Channel. We really appreciate all your support. This post is a recap of the entire session held with Butterfly Protocol
We have with us Dana Farbo
I am Dana Farbo and the President of Butterfly Protocol. I have been in the tech space for over 20 years and seen a lot of projects. I have even been a guest judge on the Season 2 of Meet the Drapers. But I have never been more excited about a future of a tech evolution as I am now. And I have a great team that builds and supports Butterfly
Q1. With the future of Decentralized Name System, we will make the uncensored internet a reality. Could you give more information on this topic so that we can understand this better?
Yes, this is a big question. We believe that as the world moves toward giving control over data to the creator of that data on a personal level, the decentralized web will be the primary way for managing and distributing data. For instance, Europe has data privacy laws like GDPR that require companies to allow owners to get back their data. Now, when we move to Edge Computing and local storage with hybrid cloud, the need to interconnect nodes that aggregate and authenticate data is never greater. Rather than use a centralized DNS system, we can use a localized and decentralized web to connect these nodes so that the blockchain can be used and file storage systems like Filecoin using IPFS allows us to put data anywhere. It is a very exciting time.
It gets pretty deep but at the core we are building into a future where you are more in control.
Q2. Butterfly does business on the Domain Name System, a "tech savvy" topic that is difficult to understand for most of the crypto community. How can you explain your solution in a non-tech way so that everyone can easily understand the value of Butterfly?
hmm, lets try this analogy: Think of a person’s name like John Smith. There are a lot of John Smith’s in the world. And though we have to register to get a drivers license, passport, etc. we still have to identify that I am THEE John Smith that I uniquely am. So, in essence, Butterfly is a naming system that has a built in method to identify you or any asset as the unique thing that it is. And then it lets you control all the parts about you including the content you write, the pictures you make, etc. without some central authority being able to remove parts of what is uniquely you.
I register a name, I create things that use that name, I control those things...
Q3. In relation to your token, why develop it under the ERC-721 and ERC-223 feature? What advantages does this offer to your project, that the ERC-20 domain does not?
They are basically all interconnected. First, the ERC-721 allows anything that has a name to be a single and tradeable token. For a domain, that may be sports.BET. If you acquire that name, it becomes a single ERC-721 and you can keep it, sell it, trade it, whatever. It becomes a single asset and the Ethereum ecosystem makes it easy to do all these things.
Then, the ERC-20 environments with ERC-223 work around the aspect of ownership as well with a massive built-in trading and interoperability component. For Butterfly to enable a system that uses tokens like BFLY and subBFLYs to buy or sponsor domains, it is a natural to use. However, we can also integrate other chains through DApps and the interoperability of these will increase over time. We like what Polkadot is doing as well so there will be bridges no matter the tech.
Q4. Butterfly protocol allow to own a domain name, and publish content that not other person can censor or block. So if a user is using the name of an organization or a trademark and publishing content under his name, will not be any legal problems with intellectual property law?
Butterfly Protocol is not developed to break the law. The very nature of blockchain allows for immutability of the data. We follow the mantra: You Create it, You Own it, You are Responsible for it. This means that if you create something that is against the law or infringes on trademarks, you are responsible for the consequences. Blockchain is not an anonymous environment. Butterfly does protect from random censorship but it does not create an environment where illegal activity will go unpunished.
Q5. In how many ways or what are the ways your project generate revenue? What is the revenue model? How it can be beneficial for both investors and for project itself?
Great question and at the heart of what a real business must do. We have several ways that Butterfly creates revenue. First, the BFLY core tokens are used to sponsor Top-Level Domains (TLD). We sell those and when they are used, they are burned. Next, we auction off a portion of the subBFLYs tokens specific to every TLD. We also offer consulting and development services for those groups that need help in integrating or building DApps with Butterfly.
This part is really exciting: For owners of BFLY, you are automatically staked in a portion of the subBFLYs tokens that are created. It is an automatic process and 1.5 million subBFLYs are distributed to BFLY owners every time a TLD is sponsored. Think about if 100 TLD’s get sponsored. 150 million subBFLY’s will be distributed to holders of BFLY. It gets massive very quickly.
Q6. Nowadays So many Rug Pulls and exit scam happening . How Users can trust your project and how you are different from others?
Wow! thanks for all the questions. So lets take the aspect of scams. We built the Mainnet before we got into the marketing and token sale because we believe that you should prove what you say you can do. Always protect yourself but we have a big market, a great and needed product and a successful team with reputations. We are not going to throw that away to make a few short term bucks. Our future is big and great and we believe in it
Q7. What makes your project different from others and what are some of it is practical usecases?
Again, we already are on Mainnet with our registration platform. We also built a POC as Butterfly Social social media app. We are in a unique space and differentiated form others such as Unstoppable or handshake. So we see a future of connected DApps and we will be at the center of that.
Q8. We all know that there are many problems with the Ethereum network: scalability issues, high gas costs, slow speeds, etc. So, why did you choose to build a token on the ERC-20 blockchain ecosystem? Why not build it on some scalable blockchain?
Great question. Separate the naming environment form the DApp environment. Naming needs a robust marketplace. Plus, you typically only buy a domain intermittently. So, having a way for people to buy, sell and exchange with Ethereum makes sense. With DApps, any chain can be used and all it needs is a bridge to make sure you are who you say you are. We expect all protocols and chains to integrate a Butterfly solution over time.
Q9. Most DeFi projects especially those ones offering yield farming are driven up by hype and scarcity, so when the hype dies the project dies. What's the key to sustaining Your Project yield farming?
Our first order of business is to build an ecosystem of DApps that use Butterfly starting with the acquisition of domains. we see a future where all DEFi has Butterfly integrated so that the tracking of assets is also replicated in a decentralized and distributed environment. For yield farming, that is not our core business. But we see the value of it in some cases.
Q10. About the tokenomics? Could you give us an overview of the tokenomics? Is the token designed to rise and fall with the success of the platform? And does it include any scarcity paths such as stake, store, or burn?
This is a big one so let me take it in parts.
First the sale dynamics. We have 4 rounds before listing. Advisor – $100k, Seed – $300k, Private, $500k, Public on Polkastarter, $100k. The price spread between Advisor and Public is only 14 cents so very tight. The circulation supply at time of Public puts the market cap at less than $1 million so again, quite low for a built product.
The next part of tokenomics is in what comes with being a BFLY token holder. Holders get automatic staking for whenever a new top-level domain is sponsored. You get a share of the 1.5 million subBFLYs for each domain based on how much you own. These subBFLYs will themselves go on a market and be trade-able. The long-term benefits here are huge and I suggest you look at our overview document on the website.
Q11. What is the most ambitious goal of the project? I would appreciate it if you could share with us any upcoming updates? What should the community look for?
For the goals of the project, we wanted to get to Mainnet and we accomplished that. It was hard and got interrupted by Covid. Now, it is about expanding our DApps and usage. I will talk about partners in another question
Q12. A partnership is essential for Adoption, so can you tell us what partners you have now and in the future?
We are very active in bringing partners on board and will be announcing some this week. One I can tell you about is a Learning and education platform that is bringing immersive learning using virtual and augmented reality to market. They will use Butterfly to allow for individual naming that then allows that person to control their lifelong learning by putting it on the decentralized web
Q13. What is your target market? Who are potential customers or clients that you are focusing on? What is your marketing strategy or plan to attract more users globally, especially in communities where English isn't spoken?
We break our market into a couple of categories. First, the world we live in for new projects purpose built for crypto and decentralization. But there is a huge need for existing companies to create a way to protect their business by building a parallel environment using Butterfly and a DApp to their centralized environments. This will allow them to flip a switch to the decentralized side if they get censored or shut down in the other.
Q14. At the moment , where you are focusing right now ? building and developing product or getting customers and users, or partnerships ? Could you share it?
At the moment, we are focused on the sale. Our dev team is continuing to build but our executive focus to to have a successful sale for our community. Next, we will build out the POC Butterfly Social app into full launch as well as refine our auction and registration process. Then it will be other DApps and partnerships
Q15. What makes your project different from others and what are some of it is practical usecases?
Yes - it is on Mainnet and a POC DApps already in place. Other use cases include a .REPO top level domain with supporting DApps for a n ew Github type product. We will also have fantasy sports DApps and others
Q16. Currently "Staking" is a very popular topic. Can you please explain the details about the token staking plan and the benefits of adding "staking"?
Staking comes in 2 ways for us. We will look at staking for supporting the liquidity pools and announce more of that later. But the big thing with Butterfly is that you get automatic staking by owning BFLY tokens. You will participate in a group of subBLFY tokens for every TLD that is sponsored. So, if .FANTASY is sponsored and you own BFLY, you will get a part of a 1.5 million subBFLY-Fantasy token based on your percentage of supply. Imagine if 100 or 1000 TLD's are sponsored, the pool and your automatic staking could get huge. These will be tradeable tokens on an exchange because they are used to buy subdomains.
Q17. Can you tell about your listing plans? Especially the ones involving major exchanges, CEX and DEX. Are we to look forward to further Partnerships and what values would they bring?
Listing - first, Uniswap the day our public sale closes on Polkastarter. Then we will look at other exchanges as it makes sense. We will be listing on some centralized exchanges to drive additional access to BFLY and market liquidity but can't say which ones yet.
Q18. For a project development first of all main priority is having enough fund. Does your team financially capable to run this project? Do you have enough fund for it's developement Can you tell us that how your project generate the profit?
Money always matters when it comes to a successful project. We have spent over $750k to get to Mainnet and this current raise hard capped at $1 million. however, we have financial strategies in place to ensure an adequate amount of funding for the project moving forward.
Q19. What is your strategy for marketing and for Mass Adoption ? How do you evaluate the support from the community?
Markting is happening right now and this AMA is partially a result of that. We will continue awareness in the crypto space but we also have a traditional PR team for ongoing awareness outside of this space. We will also build communities and provide area Ambassadors as our ecosystem of partners grows.
Q20. Presently as at today, can I possibly use your token in real life for payment?
For paying for traditional goods and services, our token is not meant to be used for that. It is meant to be used in our platform and as such, is truly a Utility Token. But the tokenomics are good as we burn tokens as they are used to sponsor a top-level domain or buy a subdomain. If 100 TLD's are sponsored, approx. 1 million BFLY are burned. That is very important as the total supply is capped.