CoinJob (XCJ) A low-fee, distributed labor marketplace for computer-based work
The CoinJob marketplace is an online platform where task-persons can post work and workers can complete tasks from the comfort of their computer. One launched, projects will focus on software development, web development, graphic design, financial modeling, and other tasks that need nothing more than a computer and expertise to complete. The company aims to compete with Gigster and other task-based labor platforms by charging lower fees and offering automatic arbitration for task-persons and workers. The organization is based in Washington, D.C.
Most 'gig economy' platforms charge 20%+ of total contract value for the same type of small, technology-heavy project that CoinJob caters to. Without the friction of traditional payment methods in the form of transaction and interchange fees and with autoamtic arbitration reducing costs on the back-end, CoinJob will be able to offer lower fees than competitors.
CoinJob will offer automatic arbitration by automatically redacting key information from completed jobs in dispute and distributing the work and the job description to members across the network, who will adjudicate a decision and be rewarded with a small amount of Jobi for their efforts.
As usage grows, demand for Jobis grows, which should lead to increased value and platform attractiveness
As the overall labor market shifts for job-based labor to task and project based labor, labor marketplaces in the “gig” economy are increasingly prevalent. Freelancers on these marketplaces appreciate the ability to make their own hours, supplement their income, and be paid promptly. In fact, according to the 2016 Freelancing in America Survey completed by UpWork, freelancers report higher levels of job satisfaction than traditional workers. Furthermore, alternative work arrangements, including self-employment, contracting, and “gig” is the largest growing segment of the labor market. According to Alan Krueger of Princeton University, “All net employment 5 growth in the U.S. economy from 2005 to 2015 appears to have occurred in alternative work arrangements.”
While traditional jobs still account for the majority of labor on the market, the “gig” economy continues to grow, with high-skill, technology-based labor accounting for a large percentage of the increase. Companies like Fiverr, UpWork, TaskRabbit, and Gigster are taking advantage of this trend in the traditional economy. However, each charges substantial fees for platform use, cutting into earnings for workers and costing more for task-givers (See 3.2 High Fees).
The market for alternative “gig” work is currently small, with less than 1% of the working population currently relying primarily on online “gig” websites for their livelihood. However, this is changing as companies increase labor outsourcing to reduce costs and workers look for additional flexibility and ownership of their work. Determining total addressable market (TAM) is key in determining viability of the business as a long-term player in the space. As the CoinJob platform will initially appeal to software developers, the TAM depends on the number of software developers, the number likely to use a “gig” economy service, the income of each developer and the fee charged by CoinJob. According to the 2017 Evans Data Corp Global Developer Population and Demographic Study, there are approximately 21 million professional software developers worldwide, including nearly 4m in the United States. Furthermore, according to the U.S. Department of Labor, this figure will grow 17% in the next 10 years. In our model, we assume software developer growth of 17% and an independent worker rate of 20% in ten years. Additionally, we assume average wages stay constant at the current $95,195 per worker as outlined by the Department of Labor. With these numbers, the total U.S. market wages we are targeting is:
4,000,000 x (1.17) x (20%) x ($95,195) x (fee charged) = $89.1B x (fee charged)
Due to decreased costs coming from automatic arbitration and reduced payment friction, we think an 8% fee will allow profitability over the long-term.
$89.1B x (8%) = $7.2B U.S. TAM in 10 years
A 3% market share at a reasonable valuation will allow CoinJob to be a $1 billion business.
This is only taking into account software developers, which will be our initial target population. Including graphic designers, financial analysts and other professions that can use the platform, the TAM is much higher.
1.Market Problems and Solutions
Issues in the current structure of the market are two-fold. First, existing platform providers charge high fees in order to finance arbitration of work and the sizable technological lift of building and maintaining a platform from scratch. This is further exacerbated by transactional fees on credit cards and similar payments methods.
Current “gig economy” offerings charge an average of 20%+ of total worker pay for the same type of small, technology-heavy project that CoinJob caters to.
These fees are necessary for dollar-based gig economy startups for two reasons:
1) Friction in the payment method in the form of transaction and interchange fees
2) When projects go awry, platforms bear the burden of costs in the form of a refund or arbitration
We believe that CoinJob will solve both of these problems, allowing for lower fees and automatic arbitration in the event of dissatisfaction with produced work. A purpose-dedicated crypto-token allows for low transaction fees while automatic arbitration reduces operating costs. We anticipate settling on an 8% transaction fee for work done on the CoinJob platform.
In the dollar-based gig economy model, a “gig” platform allows for arbitration by platform managers if the delivered work product does not match expectations. This process is often timeconsuming, expensive and leads to bad blood between parties. We anticipate circumventing this by mandating funds be held in a multisignature escrow wallet while the project is underway, with the funds being deposited upon agreement of desired work product between task-giver and worker. The multisignature escrow wallet has three signatories: the task-giver, the worker, and CoinJob. In order for funds to be released, two of the three parties must enter their signature, with the worker’s signature entered upon delivery of product and the task-giver signature delivered upon confirmation of receipt of requested work. If the task-giver disputes the quality of the finished work product and refuses to sign for completion within a reasonable time period, an automatic arbitration process will begin. The job description and work product will be automatically redacted and randomly distributed to platform users, who will vote if the work product matches the work description. If users determine the work produced did match the work description, CoinJob will automatically sign the wallet and the funds will be released to the worker. However, if users determine the work produced did not match the work description, CoinJob will release the funds back to the task-giver, amounting to a refund. In this way, arbitration becomes cost-effective and automatic; workers are incentivized to produce thorough, professional work, and are assured quick payment upon successful completion of a project.
CoinJob will use an Ethereum-based crypto-token, the Jobi, as the primary payment mechanism between task-givers and workers. There are two main reasons for adopting the token system:
1) It is a means of raising enough money to develop the project. A well-implemented crowd sale, with carefully defined objectives and guarantees, is one the best ways to both generate capital and to build a community that has a stake in its success.
2) The token represents a simple universal measure of the value of the CoinJob platform, the rising number of CoinJob projects, and operating efficiency of the company.
Completion of additional projects on the CoinJob platform should lead to an increase in our overall platform strength, which in turn will allow marginal costs to reduce, increasing the profitability of the business. The ever-increasing flow of projects across the platform will increase financial flow, which should lead to a further increase in the price of the tokens. This process is depicted in the figure ( as per Earlier Mention in Virtuous Cycle )
Although we anticipate a natural increase in the strength of the network over time and therefore an increase in the price of the token, we emphasize that the CoinJob team cannot guarantee a monotonic increase in the price of tokens and is not responsible for the possible losses associated with such speculative use of tokens.
2 Token Specification
Our Jobi token (XCJ) is an Ethereum-based digital token that allows transactions to occur on the CoinJob platform. On the CoinJob platform, tokens will be used as a medium of exchange between workers and task-givers, and as rewards for successful arbitration. The term of the token is unlimited and therefore does not expire and the number of tokens that can be purchased by a single user is unlimited. XCJ tokens are divisible, i.e. their number need not be an integer. Fractional shares are introduced for convenience. The smallest fraction is 0.00001 XCJ. The total number of tokens is limited in perpetuity to 200,000,000 with 100,000,000 pre-mined and 60,000,000 available during the Initial Coin Offering.
Total Tokens: 200,000,000
Pre-mined Tokens: 100,000,000
Available during ICO: 60,000,000
Available for presale: 20,000,000
Presale: 1ETH = 1500XCJ
Day 1: 1ETH = 1200XCJ
Day 2 - Day 7: 1ETH = 1100XCJ
Day 8 - Day 30: 1ETH = 1000XCJ
0.00001 XCJ - Smallest fraction
3.Initial Coin Offering (ICO)
The Initial Coin Offering (ICO) will commence on July 14th and run for 1 month or until the allocation has been claimed. The total number of tokens sold during the ICO is 60,000,000 with the remaining 40,000,000 of available tokens being retained by the company at the disposal of the Board of Directors. We anticipate using these remaining 40,000,000 tokens as outlined below:
During the ICO, payment can be made in Ether, with potential buyers holding fiat and other cryptocurrencies to use third party conversion services. The base XCJ/ETH exchange rate will be 1000/1, with bonuses given for early exchangers. Please see the table below for full details: The funds raised during ICO stage will be kept in a multi-signature wallet supervised by the two founding members of the organization. An approximate breakdown of raised funds is depicted below.
Allocation of Funds Raised from ICO
Co-founder & President Max Oltersdorf is Co-founder at CoinJob and in charge of all business-related matters. Max has worked for the Obama White House, Goldman Sachs, and Alpine Investors and is a Co-founder at Duo Collective. Max received his degree in Economics from the University of California, Berkeley and has three citizenships.
Co-founder & CTO
is Co-founder at CoinJob and in charge of technology- related matters.
Ryan has worked as Senior Software Engineer at Applied Predictive
Technologies, and is a co-creator of JukeBox. Ryan received his degree in Computer Engineering from the University of Virginia and plays in the Starcraft II Master's League.
is a Strategic Advisor at CoinJob. He currently works at a long/short
equity hedge fund based in NYC, and previously worked in investment
banking at Moelis & Company. Nick received his degree in Commerce
(concentrating in Finance) from the University of Virginia and his Kipsang Number is over 500 meters.
Miller works as a machine learning engineer in the field of AI based
fraud detection. He holds degrees in Mathematics and Computer Science
from NYU's Courant Institute.