How Digital Asset Tokens Can Help Expand Funding, Collaboration, Research and Commercialization of Medical Discoveries
Part of the Dry Powder Bio business model is building a tokenized blockchain ecosystem using digital tokens as an equity fundraising tool, as a store of value, transfer of payment, and incentive rewards for work or services performed. You may know Bitcoin but there are many layers below that in terms of capabilities and business models today.
As we expand our platform, we will introduce digital smart contracts to help companies monetize and trade future cash flow and IP rights from biotech assets, enabling biotech companies and clinical researchers to raise capital more efficiently from small-dollar transactions to millions in funding.
We will be introducing a non-fungible token (NFT) and open-source workflow and will add team analysis and a Scientific Advisory Panel that is rewarded with tokens to help vote for the projects with the most potential and other actions required by this community.
The NFT is programable and offers more flexibility to partner with investors as
1. Equity holders in the company.
2.IP ownership and revenue rights just for a product line.
3. A straight revenue share participation by company or product line with no other equity rights.
4. Many other combinations of investment, compensation, and value inflection points.
Our goal is to introduce a new disruptive funding mechanism to the biotech industry to reduce costs and friction in funding biotech companies for $1 to $20 million raises, but also be able to fund earlier-stage peer-reviewed research and projects just coming out of academia by facilitating micro-transactions.
Rare diseases do not get the research funding needed because they do not have enough revenue potential for most pharmaceutical companies to pursue if the patient population is not large enough for a return on investment. Rare diseases are defined as diseases affecting less than 200,000 people.
Using digital tokens, we can help raise capital to invest, fund researchers, pay clinical labs, pay lawyers, and compensate caregivers and patients for participating. The tokens reduce friction and costs and make collaborating much more efficient and improve the economics to bring cures to market.
Blockchain tokens also facilitate the ability to inject liquidity into the marketplace for private investments that have not existed before. Digital tokens make it easier for investors to sell their shares between stages as there are clear, “value inflection points” as companies pass milestones such as successfully moving from Phase 1: Clinical Trials, Phase 2: Trials, Phase 3: Trials, 4. New Drug Application, and then 5. FDA approval.
Why this matters is that it increases the number of investors because they can now sell their shares within 1-3 years from one stage to the next rather than investing with little way to get your money back until waiting 8-10 years for the final approvals if that happens. Tokens also make it easier for a global audience to participate and buy, sell, or exchange their shares.
Additionally, it creates an easier opportunity for patients and families most affected by specific diseases to invest in their potential cures or treatments and get rewarded for work they might do for help recruiting other clinical trial participants or a potential return for monies invested for any success that is generated from finding new cures or treatments.
What Is Tokenization?
Blockchain technology is a fundamental shift in technology and is expected to transform most financial assets and business models due to its transparent, immutable, secure, and distributed structure.
Tokenization is a process where some forms of assets are converted into a token that can be moved, stored, or recorded on a blockchain. Bitcoin is the best example. For illustration, you might think of a token that is used for a car wash, laundry machine, or retail video game store at a mall. The token is only good for that one application.
Tokenization can also be a representation of value with examples of real estate, art, carbon credits, and an unlimited list of applications
Tokenization Benefits of Using Digital Tokens?
•Faster and cheaper transactions: Automated smart contracts by triggers, fewer intermediaries
•Greater Liquidity-Private securities, illiquid assets
•More accessible: Available to a wider audience globally, tokens can be fractionalized into small percentages.
•More transparency: Security token has the token holders’ rights and legal responsibilities embedded into the token. You know current and prior ownership.