Crypto News

Freelancing Is Broken. This Blockchain Start-Up Wants to Fix It

A startup wants to use the concept of a governance token to reform freelance talent boards and align incentives between the platform and its users.

A new startup wants to change the way freelance talent and respective clients find each other through a community-run platform. To accomplish this, the project will feature its own governance token.

The core premise of the platform, known as Braintrust, is to remove middlemen from the process of hiring highly skilled talent for contract and freelance work — primarily in the IT industry.

But unlike the many iterations of this concept born in the initial coin offering era, Braintrust will not force users into a proprietary token for payments. Instead, it borrows some concepts from DeFi governance, and especially Compound, to create a community-run platform.

Cointelegraph interviewed its CEO, Adam Jackson, to learn more about the platform.

Realigning incentives

Jackson believes that existing freelancer aggregation platforms, like Upwork and Fiverr, suffer from fundamentally misaligned incentives between the owners of the platform and its users:

“Their job is to connect buyer and seller, company and talent, and then facilitate the transaction. And then take as large a fee as possible as a percentage of that transaction.”

The fees incurred by freelancers are usually about 20% of the total billed amount. This is the norm for any “two-sided market” born on the internet, with eBay pioneering that model.

Normally, these firms can get away with large fees due to the value they add by creating a trusted environment and providing escrow services. But that aspect can be recreated by a peer-to-peer vetting system, Jackson explained. Users will be incentivized to validate new clients and freelancers as additions to the community.

The system is not a decentralized autonomous organization though, and a non-profit foundation will take care of some aspects of the system, like accepting money. “But that’s just one of many companies or people or entities that are helping build this thing,” Jackson added.

Braintrust is also not completely feeless, as the foundation will collect 10% of each transaction from clients. But the exact rates are subject to change by community governance.

Compound-inspired governance model

Payments on Braintrust will be conducted through traditional fiat USD, though crypto-based payment will also be supported.

The Braintrust token, or BTRUST, only has governance functionality. Its holders are able to vote on key aspects of the platform: what kind of clients and talent to accept, what features to develop, how much the platform should charge.

Jackson hopes that the new model will promote a vibrant talent network that will be actively interested in improving the ecosystem.

“This new model I’m describing actually isn’t possible without a token. The token, [and] the blockchain facilitates replacing the middleman.”

Jackson revealed that Robert Leshner, the founder and CEO of Compound, is an advisor and investor in the project. Furthermore, Braintrust is reusing a fork of Compound’s governance code to power its own systems.

The platform’s users will earn the token by contributing to it, for example by evaluating new candidates. Unlike some DeFi protocols though, it appears that the platform’s revenue will not be distributed to token holders. Jackson did not wish to go into detail about the token economics, though he promised that it will be explained as Braintrust approaches launch at the end of the year.

Braintrust’s concept represents an interesting use of crypto-native systems to solve real world problems. However, it remains to be seen if it proves to be more successful than previous attempts.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

1
Write a Comment

1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
0 Comment authors
newest oldest most voted
Startup Company Introduces Braintrust Platform To Fix And...

[…] Read the full story here […]

Related Crypto News

The Three Most Controversial Bitcoin Price Models and What They Predict
Many are highly critical of the three highly popular models used widely by Bitcoin analysts — stock-to-flow, Hyperwaves, and...
Binance Donates $70k of PPE Equipment to Hospitals in the Philippines
Binance Charity (BC) has donated $70k worth of personal protective equipment (PPE) to eighteen hospitals and government institutions in...
Binance Donates $70k of PPE Equipment to Hospitals in the Philippines
Binance Charity (BC) has donated $70k worth of personal protective equipment (PPE) to eighteen hospitals and government institutions in...
Monaco Passes New Security Token Laws, but Acting on Them Is Not Easy
The government of Monaco has passed a new bill introducing the establishment of a security token framework. Monaco is...
Bitcoin SV is Up 21% This Week And Nobody Has a Clue Why
Bitcoin SV, the controversial blockchain token promoted by Craig Wright, has surged by 21 percent in just two days....
Bitcoin SV is Up 21% This Week And Nobody Has a Clue Why
Bitcoin SV, the controversial blockchain token promoted by Craig Wright, has surged by 21 percent in just two days....

Featured Crypto News

Bloomberg Analyst: Key Metrics Show Bitcoin Should Rocket Towards $12,000
It’s been a slow past few weeks for the Bitcoin market. The cryptocurrency has effectively been range-bound for two...
Report: $300B Worth of Food Will Be Traced Using Blockchain and IoT by 2027
A report claims that the global food industry could save over $100 billion annually by implementing blockchain and IoT...
BItcoin’s Sudden Drop to $9k Coincides With Fed’s Balance Sheet Contraction
Bitcoin plunged back towards $9,000 despite showing signs of upside correction in the early Friday session. The latest price...
Cardano (ADA) Is Forming the Signal That Preceded a 75% Crash: Analyst
Despite Bitcoin’s stagnation, Cardano (ADA) has performed extremely well over recent weeks. Data from crypto research firm Messari shows...
Three Important Reasons Why Ethereum Could Tumble Below $220
Ethereum failed to continue higher above $233 and declined sharply against the US Dollar. ETH is now trading below...
Bitcoin Dropping to $6K ‘Golden Pocket’ Isn’t Bearish, Says Trader
A classic Fibonacci retracement could land BTC/USD at $6,300 or lower and still not disturb the long-term trend. Bitcoin...