The stated goal of the Terawatt project is to help “Global LED Adoption Through Blockchain Technology”.
It will do this by creating a Decentralized Autonomous Organization to be funded and used by major utility companies and energy customers all over the world.
This will help to improve LED sales and, therefore, to lower greenhouse gas emissions in the long term.
The pre-sale of tokens is underway at the time of writing. The main ICO sale of tokens is planned for September 15 to October 28, 2018.
We can see what this ICO is all about by looking at the details contained on the Terawatt site and White Paper.
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Token: LED tokens
Hard Cap: $11.46 million
Payment Methods: ETH
Total Cap Size: 100 million LED tokens produced, 65 million circulating
Technology: A DAO and deflationary Ethereum-based, private (zk-SNARKS) currency
Private Sale: Currently underway
Public Sale: Due to run from September 15 to October 28, 2018.
The idea that inspired the Terawatt platform is that accelerating LED adoption will help the planet and solve a real-world problem.
They believe that many people understand that moving to LED lighting would be good, but that a lack of funding is slowing down adoption rates. They want to make it easier for people to adopt LED lighting.
At the heart of the platform is a DAO that uses Ethereum smart contracts. This will allow the token holders to decide on the future of the company.
Project Use Case
The White Paper that has been written to support the Terawatt ICO details the problems currently associated with home and business lighting in the world.
It then goes on to explain how LED lighting can help, and how this industry has grown greatly in recent years.
While there are no specific use cases included, we can see how they intend their DAO to be a bank or pool of funding. This will encourage power companies, businesses, and customers to help each other, in order to keep LED lighting affordable and available at all times.
Terawatt Team Overview
On the Terawatt site they have listed a team of 13 people, including Advisors.
The CEO is Evan William. He studied in New Jersey and has a career that has seen him work in a number of different companies in various sectors, according to his LinkedIn profile.
The COO is Morris H Layton III. Jerome Raymond is their CTO and Hase Takujira is listed as Advisor / Developer.
Other roles mentioned are DAO Architect/Advisor, Lead Engineer, Developer, Advisor / Marketing.
Among the main Advisors listed here are Roman Karimov, Savio Gomez, and Miikka Saloseutu.
The team clearly has a good range of experience and expertise.
However, one concern would be that there are currently more Advisors than core team members, leading us to believe that more team members will be needed to make this project work.
How The Token Works
The LED coin is an ERC 20 token. 100 million will be created and the circulating supply will be 65 million, although this supply will decrease over time to just to 1 million.
It is designed so that utility companies and other businesses will accept it as a form of payment.
Token holders will also receive voting rights as well as their share of company profits.
What Do Investors Gain
The token price is currently set at 0.0002 ETH, with a 100% bonus for investors in the pre-sale.
The Terawatt team explain in their White Paper how they believe that the value of this token will increase over time thanks to their carefully planned Tokenomics model.
The coin will be used as an incentive by giving holders profits and voting power.
It should be noted that they have been very up-front about the focus that they will be putting on monetization.
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Opportunities & Risks
The level of growth in the LED lighting market means that there are opportunities in this field.
It is pointed out in the Terawatt documentation that they have no direct competition at the current time.
If they can get the market share that they plan for then they can expect their platform to be a success.
The number of benefits that are mentioned for switching to LED certainly means that it is something that should interest a lot of people.
As for the risks, the White Paper doesn’t go into great detail, although the lack of direct competition is a positive factor.
Perhaps the largest risk is that simply not enough people decide to get involved.
While the idea of moving to LED lighting is extremely worthwhile, is there enough here to truly motivate people to join this platform and use it?
Emerging technology and possible new regulations are among the other key risks to be kept in mind with this ICO.
ICO SIGNALS :
The concept behind this ICO is sound. LED lighting is less damaging to the planet and beneficial to the user, so a way of encouraging more people to switch over makes sense.
Will it be a success, though?
There is still some work to be done before this can be said with any certainty.
It is good to see that they have teamed up with partners such as Carbon Check and Genesis, while they have brought on board a number of experienced Advisors to help out.
At the moment, there are more Advisors on there than people who will actually be doing the work. If this is sorted out in time then it will help to ensure that the project is a success.
Overall, this is a worthwhile ICO that is a bit different from other ICOs just now. It will be interesting to follow its progress over the next few months.