Rigoblock- Decentralized asset management network

November 23, 2018

Rigoblock- Decentralized asset management network

Introduction

The asset management industry has been following a path of consolidation towards bigger corporate structures during the last 10 years. The hedge fund industry, in particular, has developed into a more standardized and regulated sector. High setup costs and requirements of a minimum 50 Million US Dollars or even much bigger ini-tial Assets Under Management (AUM), automatically exclude the smaller players from the market. Reason behind such high minimum AUM requirements are high costs of providing Prime Broker services to funds: costs like Net Assets Value (NAV) estimate, collateral accounts, man-agement company costs, legal and advisory costs. Furthermore, investment funds and management companies are in most cases no more than P.O. Boxes; by this we mean that they do not actually employ anyone, they arejust offshore corporate structures.

The Ethereum protocol provides the perfect technol-ogy for creating investment vehicles on the spot,allowing subscriptions and redemptions in real time, trading on decentralized exchanges in a trust-less manner, so that no administrator or custodian is needed, allowing for a level of efficiency and transparency in the industry never seen before. One positive externality of our proposed model is that, by being agnostic of the AUM size, it is also possi-ble it will be used as a tool to building one’s track record in order to get a job at major investment funds,hence improving visibility for traders. Either way we are to lay down the path for changing how things are done in asset management.

What is Rigoblock ?

Rigoblock exists to reinvent the asset management industry making it accessible to everyone, enabling full transparency and empowering rigorous meritocracy.

We aim to create a new generation of traders and a new level of asset management system. Simple, transparent,meritocratic and democratic.

Our video

The future of value

With the emergence of token-based markets,it is pivotal to create, organize and maximize new forms of value, through efficient, effective and transparent asset management protocols.

Rigoblock reinvents the way of capturing, developing and managing the new tokenized assets making it accessible to everyone.

Fair User Behavior And NAV Publishing.

Excessive Risk Taking.

Excessive risk taking is the practice of exploiting a 20 percent performance fee by taking as much risk as possible in order to generate the biggest returns, therefore allowing the manager to focus on short term gains. We believe that our Proof-of-Performance model has the potential to shift manage-

ment focus more on the longterm,while at the same time leaving uncapped thetotal amount a good manager can receive, as the Rigo token holders can

together set the cor-rect parameters for rewarding performance. We believe,

in the long run, this methodology will not lead to lower pay for the manager, but since her focus is on long term returns, it will improve the quality of the returns

The Components of Demand and Offer.

The GRG token is an inflation token. New tokens get created and allocated automatically by the Proof-of Performance algorithm, enforced by smart contracts. The new tokens then get distributed to the token pool managers.

Such a reward is a substitute to management and per-formance fees. The distribution happens automatically

from the Proof-of-Performance module tied to the GRG token, in a fully auditable and transparent way, and with-out manual intervention or reliance on a centralized coun-terpart.

The managers must hold a minimum amount of to-

kens in order to receive their rewards. The minimum is

dynamic and set by the token holders, so that the ra-

tio between inflation and demand within the ecosystem

will be balanced. Standard users will be required to hold some GRGs in order to unlock premium features of the platform, thus generating additional demand.

The RigoBlock protocol retains a royalty of 5 percent of new tokens created, in order to generate a continuous funding model which allows the reward of external devel-opers creating applications on top of the RigoBlock proto-col. Since the GRG token holders set the inflation param-eters, the continuous funding model provides them with an incentive of targeting a positive inflation, rather than a null new tokens generation.