The Future of Equity Split and Blockchain-Based Digital Advertising

The Future of Equity Split and Blockchain-Based Digital Advertising

Introduction:

In the world of startups, splitting equity among co-founders is a crucial decision that can impact the success and dynamics of the team. While there are various opinions on how to approach this, an increasing number of experts believe that equal or close to equal equity splits should become the standard. This article explores the reasons behind this belief and also delves into the innovative world of blockchain-based digital advertising, with a focus on the Basic Attention Token (BAT) platform.

Equity Split Among Co-Founders:

Founders often make the mistake of splitting equity based on early work, without considering the long-term value each co-founder brings to the table. It takes several years to build a successful company, and small variations in the first year should not justify massively different equity splits in the years to come. Investors also view founder equity splits as an indication of how the CEO values their co-founders. Therefore, it is essential to give equal or close to equal shares to co-founders to demonstrate trust and mutual respect.

The Importance of BAT in the Digital Advertising Market:

The digital advertising market has been plagued by issues such as fraud, privacy violations, malvertisements, and poor revenue for publishers. BAT aims to solve these problems by utilizing blockchain technology, creating a more efficient, transparent, and decentralized marketplace for publishers, advertisers, and users. The concept revolves around user attention, which is measured as focused mental engagement. BATs can be used to obtain advertising and other attention-based services on the platform.

Benefits of the BAT System:

The BAT system offers a range of benefits for users, publishers, and advertisers. Users gain strong privacy and security when viewing advertisements, improved relevance and performance, and a share of tokens. Publishers experience improved revenue, better reporting, and reduced fraud. Advertisers benefit from less expensive customer attention, decreased fraud, and better attribution. The introduction of curators as additional players in the BAT ecosystem could further enhance its effectiveness.

The Evolution of BAT and Future Plans:

Currently, BAT is integrated with the Brave browser, providing a BAT wallet and handling verification and transactions through Brave's internal Zero Knowledge Proof (ZKP) ledger system. However, the vision for the future involves making the transfer and verification process entirely distributed on Ethereum. This would ensure user privacy through a state channel scheme with zero knowledge proof protocol. The measurement of attention in real time and the calculation of the Attention Value for ads based on duration and pixels viewed contribute to the accuracy and fairness of the system.

Actionable Advice:

• 1. Embrace equal equity splits: Consider adopting equal or close to equal equity splits among co-founders to foster trust, value contributions, and attract potential investors.

• 2. Explore blockchain-based advertising solutions: Investigate the potential benefits of platforms like BAT to address the challenges of fraud, privacy violations, and revenue loss in the digital advertising industry.

• 3. Stay updated on BAT's development: Keep an eye on the evolution of BAT and its integration with other platforms, as it has the potential to revolutionize the digital advertising market.

Conclusion:

The future of equity split among co-founders lies in equal or close to equal distribution to ensure fairness, trust, and mutual respect. Simultaneously, the introduction of blockchain-based digital advertising platforms like BAT offers a promising solution to the challenges faced by users, publishers, and advertisers in the current market. By embracing these innovations and staying informed about their developments, entrepreneurs can position themselves at the forefront of a rapidly evolving startup ecosystem.