70% of the tokens for financing is very high, but ok, at least this transparent the total amount and the sale.
Now the other 30% which destination will have, will be used for marketing, airdrop, etc ...?
How do you intend to keep the network working which protocol is PoW or PoS or both?
These are simple questions that most will ask.
Thanks for your feedback.
Let me answer your comments specifically:
70% financing: The critical key for success of the Coins4Favors platform will be a widespread use, so that people looking for someone to do a favor or mini-job in a certain area have a large number of users who can provide this favor. The platform uses a location aware app to connect favor seekers and providers and handles the compensation in FavorCoins via the ERC20 token. Therefore the biggest position in the budget plan with 40% is the marketing of the Coins4Favors system globally to reach sufficient coverage of all critical geographic regions.
We have a working alpha version of the system developed during our own technical feasibility study, but need to invest more to make it a premium product, support all platforms, as well as investment in scaling the server capacity for a true large scale user base. That is why 15% are dedicated to technical development.
Another 15% go into legal and compliance work, as we are dealing with service provision which requires careful monitoring of tax rules, etc. on top of the overall cryptocurrency situation, requiring us to remain in compliance globally.
20% are dedicated to ongoing operations costs during the development phase between the completion of the ICO and launching the final product. This will cover expenses to maintain the infrastructure and run the ongoing operation and compensation for the team which will rapidly scale up after the ICO to be able to meet our roadmap plans.
10% is contingency for unforeseen expenditures.
The remaining 30% of the coins which are not sold in the ICO:5% of these coins will be used in the bounty program to support our marketing effort during Pre-ICO and ICO.
15% will be kept for ongoing operations after the product has been launched. As outlined in the business plan in the whitepaper, we have planned a commissioning fee of about 1% of each transaction on the Coins4Favors system in the long run to make the system sustainable. However, it will not be introduced prior to sufficient market penetration which we anticipate around mid 2020. So the 15% of the coins will be used after the FavorCoin is listed on crypto exchanges to fund the ongoing operations costs of the platform till it reaches breakeven via the transaction fees. The 15% already include the anticipated increase of value of the FavorCoins with growing market capitalization.
Finally 10% are reserved for the team behind Coins4Favors. These coins will be locked for transfer till 2020 and are our motivation to drive the project to success and work hard to reach our vision of becoming the #1 blockchain powered platform for mini-jobs and favors around the world.
POS or POW:As outlined in the whitepaper and on the webpage, as it currently stands Coins4Favors will be based on FavorCoins - an ERC20 token, running on the Ethereum network. So for now it is POW till Casper changes this to POW/POS hybrid or ultimately POS.
Technical reviews of ways to avoid the gas costs requiring Ether in parallel to FavorCoins are ongoing. There are solutions to allow zero gas transactions from the users perspective within the C4F App with the Coins4Favors platform carrying the related gas costs, but those need security and robustness validation.
Thanks again for your good questions, we will review the respective sections of the whitepaper and webpage and see if we need to modify them to make these points more clear.
Have a great weekend
