Same Same but Different
What Does Angor Mean?
Angor is a Latin word that means “anguish” or “distress.” And that’s exactly what we’re trying to get rid of in crowdfunding. For this, We have created Angor Protocol and Angor Hub. They might sound like the same thing, but they serve different purposes , so let me break it down for you -
1. What is Angor Hub?
Think of Angor Hub like a farmer’s market, where as a founder, you set up your own stall with your own produce(projects). And just like you, others have their stalls too, offering different opportunities. Angor Hub is a marketplace where investors can find and invest in projects using Nostr and Bitcoin technology for security and transparency. A safe haven for Investors & Founders.
2. How investing works on Angor Hub?
Let’s say Mr. Scrooge, a 50-year-old, with curly blonde hair from Switzerland, is looking for a project to invest in. He visits Angor Hub, browses through different projects (just like shopping on Amazon), and picks one that catches his interest.
Here’s how it works:
- Angor Hub is a view-only platform where investors can discover projects.
- Once Mr. Scrooge finds a project he likes, he uses the inbuilt Angor wallet to invest.
- All investments happen peer-to-peer between the founder and Mr. Scrooge, directly on the Bitcoin blockchain.
- Angor does not hold Mr. Scrooge’s Bitcoin.
- A 1% fee is charged when using the Angor wallet to process the investment.
- All projects listed on Angor Hub use Angor Protocol to raise Bitcoin securely.
3. What is Angor Protocol?
Angor Protocol is open-source software, free for anyone to use, modify, or rebrand.You can take the code, customize it, and put your own name on it.
Good artists copy. Great artists steal. 😉- Old Saying
In simple terms, a protocol is a set of rules that define how data or transactions are processed. Here are some of the rules of Angor Protocol -
- Funds are locked with spending conditions that allow founders to spend only at pre-decided dates. Mr Scrooge (investor) does not need to take any action for this to happen.
- If Mr Scrooge wants to exit the investment early, He must actively bail out, but this comes with a penalty. This ensures commitment while still giving investors an option to withdraw.
- It allows for peer-to-peer, on-chain transactions without intermediaries.
- It integrates Taproot for privacy and efficiency, making transactions more cost-effective.( More about this in the next blog)
4. How Founders use Angor in Real Life?
Scenario 1
Mr Piccolo, a 30-year-old father of two from Thailand, discovered gold beneath his home and now has a promising Gold Mining Project. Seeing great potential, he seeks investors to bring it to life. To attract backers, he lists his project on Angor Hub, making it visible to potential investors. Mr. Scrooge comes across this project, likes it, and signs a digital contract with Piccolo directly on the Bitcoin blockchain.
As milestone dates are surpassed (meaning the first spending condition is met), the founder can then spend the specified amount, following the rules set by the Angor Protocol. This ensures security and fairness without requiring manual approval from Mr. Scrooge. A 1% facilitation fee is charged by Angor Wallet. Simple, right?
Scenario 2
Carlos, a 21-year-old from Cuba, has a great organic coffee export business and wants investors to help him grow. But because of international sanctions on Cuba, he can’t use normal funding methods like bank loans, PayPal, or crowdfunding platforms.
Carlos lists his project on AngorHub, but because we, as a company, must follow legal rules, we may have to delist his project due to sanctions and restrictions in his region
But here’s the good part: Angor Protocol is open-source and runs on Bitcoin. This means Carlos can still use it to raise funds directly from investors like Mr. Scrooge. He gets the security and transparency of the protocol, even though Angor Hub can’t officially list his project due to regulatory constraints.
In short, while Angor Hub has to follow regulations, the Angor Protocol itself is open and permissionless—anyone, anywhere, can use it freely. This openness ensures that people like Carlos can still access its benefits, no matter where they are. All they have to do is find investors like Mr. Scrooge
5. Will We Filter Projects on Angor Hub?
Yes. As Angor Hub grows, we may refine our selection criteria to ensure quality and security. But for now, our main focus is on building a trustworthy space for both investors and founders.
6. What happens if Mr. Piccolo (Founder) has started mining Gold, but Mr. Scrooge (Investor) doesn’t release the next round of funds?
This is a tricky situation. We don’t have a central authority to step in and fix disputes.
Say Mr. Scrooge is feeling confident about his investment. He locks up 10 BTC for 10 months, with 1 BTC released each month to fund Mr. Piccolo’s gold mining operation. Things start off well & after the first month, 1 BTC is unlocked, and Piccolo gets to work, pickaxe in hand.
But then, doubt creeps in. Maybe the gold mine isn’t as promising as it seemed, or Scrooge just gets cold feet. What if he decides to pull out the remaining funds? He can do that, but at a cost. Bailing out early means paying a penalty. The penalty is a time duration after which the investor’s remaining/unspent funds are unlocked, not a monetary penalty.
Here’s the catch: The unlocked funds are meant for future work, but at the same time, Mr Scrooge is taking a gamble by trusting that Piccolo will deliver results before the next batch of BTC is released. To manage this risk, milestones are set in place.
These milestones are simply pre-set dates and block numbers. When a milestone is reached, the founder can access the allocated funds. For example, Piccolo receives the next 1 BTC only when the next milestone arrives, ensuring that investment is tied to progress, not just time.
But without a neutral third party to enforce the agreement, trust remains key. Investors and founders need to be on the same page, setting clear expectations before shaking hands - virtually, of course.
One safeguard against bad actors is social pressure and reputation tracking. Since Angor uses Nostr for communication, Mr. Scrooge’s reputation is visible to other investors and founders. ( more about NOSTR in next blog)
- If Scrooge unfairly exits the project without a logical argument or statement, it will hurt his credibility, making it harder for him to invest in future projects.
- Piccolo can also publicly call him out, discouraging unethical behavior.
I hope you were able to understand the difference between Angor Hub & Angor Protocol. By removing middlemen and unnecessary fees, Angor creates a trustless funding system, where both investors and founders take responsibility for their agreements.
If you’re ready to explore decentralized crowdfunding on Bitcoin, check out Angor Hub or use the Angor Protocol to raise funds for your next project.
Thank you and Good day y’all. See you soon.