Community Bonds (CBDs) is an investment instrument which can be used by the Community i.e the retail investor to become an early-stage investor in promising projects and share upside with VCs and Angels. As an asset type, it’s an NFT and therefore one of most promising use-cases of NFTs when it comes to DeFi. These CBDs have a predetermined price, a locking period and a promised return attached. Projects generating CBDs for their community can further add use-cases to these CBDs, for example - add governance rights to them, create a character NFT collection or PFP for their community to be able to use it further and interact with it.
The capital raised through Capx CBDs directly goes into an escrow smart contract where it gets locked for 6 months (find the smart contract address in the Capx CBD docs). These funds can not be accessed by the Founder or the team, and therefore at the end of 6 months if the Project(Capx) requires to utilise the Funds they can raise a proposal to the Capx CBD Holders where the Capx CBD Holders can use their governance rights with their CBDs to participate and take a decision to check on the milestone achieved, the roadmap proposed and the proper utilisation of the funds. In a worst-case scenario the CBD holders can vote to withdraw their funds as it is if the project fails to deliver after 6 months.
Capx CBD holders will become an integral part of the Capx DAO, getting rights to take decisions on Capx Products but also all the tools and products part of the Capx Ecosystem - which includes Capx Exchange, Capx Lend, Sigma Drop, Sigma Tasks, 0xBonds, and many more.
Community Bonds (CBDs) unlike Soul Bound Tokens (SBTs) are transferrable within the locking period. CBDs have the ability to change hands and therefore can be traded in the secondary market between the community members where the CBD holder and the buyers are free to place sell and buy bids on the asset.
At the time of TGE (token generation event) the $Capx tokens would be locked in the CBD redemption contract. These tokens at the time of CBD maturity will be claimable by the CBD holders, and therefore shall provide the specified return*.