Accountability

"Accountability separates the wishers in life from the action-takers that care enough about their future to account for their daily actions."

John Di Lemme

Crowdfunding is associated with noble prospects - such as that startups can meet their early financial needs and, at the same time, investors can support a project that can make a big difference. However, this new system has a crucial element that should not be overlooked. This is an expectancy of accountability and responsibility.

Behaviors based on human relations, such as keeping promises, fulfilling commitments, are equally compelling in crowdfunding, as each person who initiates a campaign engages in some form of social cooperation. Regardless of the circumstances, accountability, which is the most fundamental component of authority, sometimes turns out a challenging task for people.

Unfortunately, in this kind of difficulty, conventional crowdfunding platforms cannot cope with campaign creators who do not keep their promises. To put it simply, since the entire system is built in a single-party dominant structure, it is only the backer's responsibility to take risks or not. On the other hand, when the asymmetric information theory is also included, the case becomes increasingly difficult for project supporters. As a result, the angel investor becomes undecided about how to spend his/her funds properly, given the lack of answerability holding the project architects accountable for completing their initiative. Over time, projects that fail to offer outcomes on the required terms cause the proliferation of campaigns with extremely high failure rates on the ecosystem.