Gather allows online businesses to monetise without advertisements or paywalls. Instead, Gather enables web and mobile app publishers to sell GPU and/or CPU power sourced from their end-users.
Should the user opt-in, the processing power is made accessible for purchase via a decentralised cloud marketplace. The ideal customer archetype includes enterprise businesses or proof-of-work blockchains.
The fees paid by the demand-siders are distributed to the online businesses responsible for bridging access to the users who provided the power. Therefore, at its core, Gather is a multi-sided marketplace.
- Supply Sider: End-Users
- Ads can hinder UX and encroach on personal privacy
- Supply Sider: Web and Mobile Apps
- Unless you’re Facebook, Amazon, Google or Instagram; Ads do not offer a reliable or predictable source of income.
- Gather financially rewards online businesses based on the quality of their content and time spent on their product, rather than clicks/impressions.
- Demand Sider: Enterprise Businesses
- Cloud computing services have room to be cheaper, given the total supply of processing power available in the world.
- By unlocking idle compute resources, Gather claims it offers processing power at a fraction of the cost in comparison to major cloud providers.
- Demand Sider: Crypto-networks
- Bootstrapping a PoW chain with a can be challenging and prone to 51% attacks.
- Gather streamlines access to a distributed network of nodes bootstrapping network security at speed.
Gather has opted for the full-stack approach to achieving its desired goals as opposed to building on pre-existing permissionless blockchain architectures. Through trial and error, the team found that vertical integration and a purpose-built blockchain offered the speed and flexibility necessary to quickly get-to-market with a commercially viable offering.
The stack can be broken down into three layers:
- Layer 0 (“Gather Online”: Hardware layer)
Accessing processing power is important to power both Gather’s native blockchain and populating the ‘supply-side’ of the cloud marketplace.
Gather is banking on web and mobile application developers to serve as key distribution partners responsible for populating the cloud marketplace with the processing power from end-users.
The Gather team has built an SDK and API for online businesses to allow them to easily incorporate the widget on their site or in their app. Upon integration, end-users are notified (see image below) requesting permission to opt-in to share their power. If accepted, a connection between the end-users device and the Gather Cloud Marketplace is established where it is sold to buyers at a price determined by demand. End-users do not have to download any software.
- Layer 1 (“Gather Network”: Blockchain layer)
The “Gather Network” blockchain has been purpose-built to serve a single layer 2 protocol/application.
It employs a hybrid Proof-of-Work/Proof-of-Stake system that layers security and carefully aligns incentives. The Gather team believe that this approach yields the best of both worlds, making it more expensive to attack than pure Proof-of-Work or pure Proof-of-Stake.
- Layer 2 (“Gather Cloud”: Automated Cloud Marketplace)
“Gather Cloud” is the name given to the layer 2 protocol residing on Gather’s native chain. The protocol serves as a decentralised marketplace, automatically matching the suppliers of processing power with buyers. Gather’s native blockchain will itself be a “Gather Cloud” customer alongside other PoW chains or enterprise businesses looking for cheap cloud alternatives.
Pricing is determined algorithmically similar to automated market makers. The tech adopts Kubernetes as its cloud management tool to automate the deployment, management, scaling, and networking of workloads. To aid integration, monitoring and maintenance, the GatherCloud aims to come with dashboard, API and SDK for PoW blockchain and enterprise developers.
- 3 Founders
- 13 employees (full-time and part-time)
- $325K paid-in capital to date (not including the amount raised in current round)
- ~4 months cash runway
- 2 years in development (founded in 2018)
- 22 soft agreements from prospect master node operators (supply-siders)
- 182 inbound requests from online publishers (supply-siders)
- 8 letters of engagement (LOE) from potential enterprise customers (demand-siders)
- Godrej Group — Godrej Group, is a conglomerate headquartered in India. It operates in sectors as diverse as real estate, consumer products, industrial engineering, appliances, furniture, security and agricultural products. Godrej has expressed interest in Gather’s cloud solution as they require a cheap and reliable cloud service provider. The company has committed to testing the product once the MVP is ready.
- ASAP Fluids — ASAP is a leading drilling fluids company (Oil & Gas) based in India. ASAP has expressed interest in Gather’s cloud solution as they require a cheap and reliable cloud service provider. The company has committed to testing the product once the MVP is ready.
Stage of Maturity
Customer Discovery and Market Validation
- Gather Network Dedicated Miners/Validators (hybrid PoW/PoS)
- Masternodes ~38% APY; Lite Nodes ~15% APY
- Estimated mining rewards are yet to be clarified
- Web/App Publishers
- Several hundred online publishers have shown interest organically through pre-registration.
- It is still unknown how much money online publishers are expected to make (per end-user opt-in) once the product is live.
- Gather Network Dedicated Miners/Validators (hybrid PoW/PoS)
- Demand-siders (processing power purchasers)
- Proof-of-Work Chains
- Gather’s native blockchain will be the primary customer of the cloud marketplace (Gather Cloud). Several other PoW chain operators have expressed interest; however, no formal commitments.
- Enterprise Businesses
- LOIs conceptually prove that the product shows commercial promise. However, since the product is at the pre-MVP stage, it is yet to be proven whether the technology can deliver on its promises and deliver processing power to customers that satisfy critical enterprise needs.
- Gather estimates processing power will cost around $0.0045 per GB of data processed (30% cheaper than AWS).
- Proof-of-Work Chains
- ERC-20 compatible $GTH token expected to list in September 2020
- Layer 1 Main-net launch expected Q1 2021 (ERC-20 compatible tokens to be converted to native-chain standards)
- Layer 2 cloud services marketplace expected in Q1 2021 (efficacy of the solution is highly contingent on ecosystem development)
$GTH Token Value Drivers
- Short-term drivers
- Consumable asset — Since Gather comprises of a Turing-complete layer 1 blockchain, the $GTH token is needed to pay for gas.
- Capital asset — Staking $GTH tokens will reward token holders with value flows from the network.
- Long-term drivers
- Capital asset — Since $GTH intends to be fully decentralised, the token will also serve as a governance token. Token holders may collectively vote on issuing (or burning) a portion of the network margin to token holders as a reward for their contribution.
- Store-of-value asset — As Gather becomes more widely adopted, it is to be expected that the market capitalisation and liquidity of the $GTH token to increase. In turn, this will serve to increase the economic bandwidth of the cryptocurrency. Greater economic bandwidth increases the likelihood of the currency adopting money-like properties. Use-cases may include use as collateral, medium-of-exchange or storage of wealth.
- Raghav Jerath (18.81% equity & no salary) | Co-founder & CEO | 27 years old | Full-time
- Farrukh Shaikh (17.81% equity & no salary) | Co-founder & CFO | 29 years old | Full-time
- Udit Sharman (15.81% equity & no salary) | COO | 32 years old | Full-time
- Ashesh Koul (14.00% equity & no salary) | CTO | 40 years old | Full-time
- Ayhan Gungor (9.50% equity & no salary) | CMO | 36 years old | Full-time
- Steven Young (2% equity & no salary) | Legal Counsel | Part-time
- Fundraising needs: $960K for 7.5% of the token supply
- Valuation (fully diluted market cap): $12.8M
- Market capitalisation on listing (circulating supply): ~$1M
- Investment already funded for this round: $347,000 (Angels)
Comments from the Gather team justifying the release schedule:
“The Gather team does not like the idea of enforcing extended lockups on parties purchasing tokens to add value through artificial scarcity. Gather has a revenue-generating ecosystem where the token is a requirement for participation.
The network effect of increasing publishers on Gather Online and enterprises on Gather Cloud will be the main factor in long term value creation for the token, which in turn will also increase incentives for securing the network.
The team tokens have a cliff for 6 months (followed by 24 month vesting) at which point the main net will be live or very close to it, which is where full scale revenue generation would begin.
The largest allocation is for the Foundation (48%), where tokens cliff for 6 months before vesting over 5 years. The foundation will be comprised of a majority of non executive board members who will vote on how all foundation tokens will be spent in the future.
Advisors hold 6% of tokens, most of whom have been with gather for over 1.5 years already with little to no monetary compensation thus far. We have no reason to doubt their commitment to the long term success of Gather.”
This overview has been prepared solely for informational purposes and is not to be considered as investment advice. It does not purport to contain all of the information that may be required or desirable to evaluate all of the factors that might be relevant to a potential investor, and any recipient hereof should conduct its own due diligence investigation and analysis in order to make an independent determination of the suitability and consequences of any action.