Continuing our series in planning your Dapp, if you are conducting an ICO (which this series is mainly about) you need to think carefully about your token generating event and token distribution event.
Over the course of 2017 we’ve seen many different models run, over time it’s become apparent that some models are better. We’re going to discuss basically 2 of them, one which has gotten much traction and an interesting one so far only used during one ICO.
Earlier ICOs were plagued with problems like whales coming in an scooping up all the tokens, as well as causing congestion to the network (Ethereum, something that the Lisk network aims to solve).
So modern ICOs (last few months lol) have this concept of a pre-sale with a large min-requirement to satisfy whales and not discourage smaller investors.
Their pre-sale had a minimum limit of 50 ETH
Remme has a pre-sale min requirement of 10 ETH
This solves problems like what happened with the Decentraland ICO, where whales scooped all the tokens in 30 seconds.
Raiden (Lighting network for Ethereum) launched an ICO to raise funds for development, during their ICO they ran a dutch style auction. During a dutch style auction the price is initially high, however the price/token lowers as more people enter. This discourages early investors and encourages more investment towards the end of the sale. Another side effect this had was that it helped maintain a high RDN value after the sale.
After the sale closed the average price was $1.14 / RDN. Once RDN started trading on EtherDelta and other markets initial buy prices were above $2.
Futuratum (Our example Dapp)
Here is an example of a Token distribution plan.
The plan is to ICO sometime in between March and May, with marketing starting in December.
There will be an initial distribution pool of 140,000,000 Futum tokens, with an inflation model which decreases over time similar to Lisk. Each token will be divisible up to a 100 millionth. Target raise goals are 10-20 million.
100,000,000 tokens will be available for the crowd-sale (which will be conducted in 2 phases, a set minimum pre-sale and 2 week long public sale).
- The pre-sale will give investors a 50% discount (10 cents per token), which a minimum contribution of around 1 BTC or 2000 LSK (adjusted to be $10,000 at time of sale).
- The public sale will be conducted over a 2 week timespan, with a 40%, 30%, 20%, 10%, 5% and finally 0% discount.
Pre-sale base price will be 20 cents.
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