By 2020, the private sale, founders, advisors and early backers will have 347 million OST from the 800 million total supply (43.3% of all OST created). What is the reason behind creating this token distribution compared to other competitors in the space (LISK for example, which I will attach their distribution below)? What are the benefits behind this structure?
The number is incorrect. We have identified a calculation mistake in our
OST Circulating Supply spreadsheet (which is always work in progress). I am reposting our answer from telegram, as you have raised it there too.
ICO's have evolved a lot over the past couple of years as projects and (and their lawyers) have converged on some best practices, particularly around proving token utilty before tokens are distributed/unlocked and providing for long term vesting schedules for pre-sale, team, and advisors.
OST provided a very conservative distribution of tokens relative to other ICO's during the same period and one of the most conservative vesting release schedules, period.
Here is
link to our answers to the same questions back in December of last year, just to show consistency throughout.
32.63% of supply was sold in the first token sale on 14 November, 2017. Pre-sale was 20% of that and will be released over 12 month, 1/12th per month.
27.2% reserved for the Network Accelerator Program. This is a pool created for seeding promising projects based on Simple Token. The OpenST Foundation will review applications for the Network Accelerator Program and could make grants available to projects based on Simple Token and to the teams behind such projects. The Foundation may also use this pool to incent developers to develop and provide applications, designs, software, and services that enhance the value of Simple Token.
5.61% for early finacial backers of the project like Tencent and Greycroft and 500 Startups, on a 3 year vesting schedules.
10% for advisors, on a minimum 2 year vesting schedules.
10% for the founding team, on a minimum 3 year vesting schedules.
14.56% for future token sales. These tokens will be locked for a minimum of 6 months from the initial token sale. We don't currently have any plans for a future token sale, this is only a reserve.
Countering the above distribution, companies that build on OST will need to purchase OST from the public market and then "stake" it against minting their own branded tokens backed by OST. Staked tokens are removed from circulating supply, so the more companies signing up to build on OST, removes more and more tokens from circulation.
We feel that compared to other projects that held ICO's during the same time period as OST (e.g. Kyber, Airswap, Civic, Bluzelle), OST took a very conservative and fair approach to token distribution and releases, which we fully stand behind.
