One of the most popular ways to refer to Juicebox is “Kickstarter” for web3. But that reference is often made without too much consideration. Let’s explore how a fulfillment-based funding mechanism would work in the case of Juicebox, and how we’re currently getting it wrong.

Breaking down the Kickstarter model

The Kickstarter model is based on helping people raise funds for their creative and innovative ideas and projects. As such, it has revolutionized how people think about raising money for creative projects. Founded in 2009, Kickstarter has become one of the most well-known crowdfunding platforms in the world. The concept is simple: people with ideas can create campaigns on Kickstarter, set a funding goal, and offer rewards to backers who pledge money towards their project. Once the goal is met, the project is funded, and the creators go on to realize their ideas.

Their primary funding mechanism is fulfillment via rewards. This may be:

• Digital-downloadable goods such as e-books, guides, and phone wallpapers
• Physical fulfilled goods such as prints, apparel, stickers, technology (units)
• Trivial rewards such as “your name on our website”, or “your name in the credits”

The primary funding mechanism of Kickstarter makes any payments a purchase.

The secondary funding mechanism of Kickstarter is donations via ‘pledges’. These are often small amounts that are always non-refundable. They show a token of support.

How Kickstarter Makes Money