When there was team's funds form tokens and with collection of so much fiat money this action is beyond my comprehension. You are going to develop huge project proper planning and reputation is everything. It was unnecessary thing which they can not justify by saying anything in its favor. It was not planned but implanted in last hours.
hi there!
Please check out this little explanation from scott, I hope it helps in understanding the underlying reasons for the team's course of action:
As always, the plan has been to hit a projected target amount of $48M; however, we structured the token sale to not limit this amount (uncapped) in order to use capital to invest in the hardware of building a location network (capital intensive); obviously we did not blow past $48M!
So we were faced with a decision.
Actually a few:
One option was to just decide to extend the XYO Token Main Sale indefinitely. However, we didn't think this was the best decision for the Token Holders and community for a few reasons: a) It didn't feel like it followed the philosophy/spirit of blockchain. When you publish a smart contract, if what you want to happen doesn't happen, you suck it up and let the smart contract run its course deterministically. At least, that's what I believe.
For instance, we used some pretty ingenious and insane math/programming to architect a smart contract that dynamically got more expensive after each transaction. It was beautiful, it was perfect. But that is assuming that you were selling at 10x the level we were selling at.
In practice, what actually happened was that bonuses were way way under-delivered to early token purchasers during the main sale compared to those who waited til the end. That is, if you had bought on March 20th, it would have been about 1 ETH <=> 100,000 XYO; Today, it's at 1 ETH <=> 97,385.79 XYO.
That sucks, IMO! In my world (Scott's world), I wish it was at 1 ETH <=> 33,000 or even less (67% bonus)! To really reward our early backers.
And that highlights the second reason why just extending the XYO Token Sale didn't seem like a good option (the smart contract that really is poor at rewarding our early Token Holder (YOU) would have continued on. That sucks and isn't fair to you, IMO.
The second option was this:
We just do nothing and let the sale end/conclude.
This would suck and be problematic, though because the allocated tokens (to XYO Team, Advisors, etc. would be way larger than we hoped/estimated (i.e. we want the community to own the majority of tokens; wherein if the sale stopped after the XYO Token Sale, we would end up having the majority, wherein the public would only have 22%!). Hell no.
The third option was this:
We were making an insane amount of progress on the XYO GAMMA Client (much faster than our roadmap indicated). And the plan all along was to continue to make XYO available to purchase to use in the Gamma Platform (imagine new blockchain developers that discover XYO and the crypto-kitties of XYO; yet the experience in actually acquiring/purchasing XYO is a pain in the ass. That would hurt not just the dApp developer, it would hurt all XYO Token Holders). Therefore the plan was always to sell XYO directly for XYO dApp Developers through GAMMA (as outlined on our schedule) and allocate XYO to be sold directly to the public to encourage the awareness of XYO and growth of the platform publicly sold. Wherein the crypto-economic reserve is used mainly to incentivize and fascilitate the ecosystem of the crypto-location miners, tokens for the Public Token Pool would be allocated to be sold to stakeholders that create the market value (and thus crypto-economic incentives for the miners).
Thus, it seemed like a no brainer that the best solution was to let the existing token sale end as promised; however make sure we allocated the amount of XYO to the Public Token Pool that would enable us to reach our intended target of $48M.
But at the same time, how do we do so while also rewarding our current XYO Token Holders and project backers who participated early (in the XYO Token Sale): that is to build in significant bonuses from the get go (i.e. GAMMA Sale starts at 1 ETH <=> 74,000 XYO and with each 50 Million sold of XYO, it gets more expensive by 2.50% thereby giving our current XYO Token Holders a 2.5% bonus ongoing after EACH 50 Million is sold).
So not does this just mitigate against diluting current XYO Token Holders, it rewards them with a bonus at a much more rapid rate than the XYO Token Sale current smart contract.
