[SKY] Skycoin Launch Announcement

[skycoin]

UPDATE:

The registration app is compiling but not working on 64 bit OSX with golang 1.3.  We are getting a segfault in one of the dependency libraries. OSX might have a cache we are not clearing out.

The build engineer for OSX is on vacation until the 2nd. So IPO pre-registration will begin on the 4th and last two weeks.

Thank you.

In the meantime, can you describe what pre-registration means?

What is the IPO details? Max cap? Limit of registration? Number of coins released?

Would the people that have contributed in the past be preferred?

Does the order of registration matter? How quick we register?

Yes. Preregistration generates a public key for you and then sends it to us through Bitmessage. You have to write down your private key, because you will need it later.

You also send
- your Github account name
- Bitcoin talks name
- Approximate number of Bitcoin you want to put into the IPO

Pre-registration is to gauge IPO demand and control IPO so its fair. There are 100 million Skycoin. Between 2% and 10% of the total Skycoin will be sold in the IPO. The valuation will be 10 million in the first round IPO.

Pre-registered users will be able to use their private key to participate in the IPO. The IPO is designed to be over subscribed. If you send 10 coins, only 2 of them may end up participating in the IPO and you will receive 8 coins back. This is to ensure coin scarcity and to deter speculators.

After the IPO, a spreadsheet may be published with bitcoin addresses in/out, balances and Skycoin awarded, so that fairness of the coin distribution can be publicly verified. Some information will be omitted to protect privacy.

The IPO may have tranches. The first tranche is equitable and designed to make sure everyone gets coins at the IPO valuation. Developers will get a bonus in this tranche. Then there is the whale tranche and is a free for all.

The IPO may be split into a series of smaller IPO, but it is not decided yet.

The Skycoin IPO is not a first come first serve IPO. There is no bonus for sending Bitcoin early at the beginning of the IPO period. All participants within the IPO window are treated equally. The IPO is not uncapped with unlimited amount going into the IPO.

After the IPO, there will be rolling distributions, where people can buy newly issued coins. Instead of issuing coins in a big-bang IPO, which only enriches the people involved in the IPO and deters new users (Mastercoin style IPO), Skycoin will be issuing the coins over time in a continuous process, with supply of new coins tapering and decreasing over time. The magnitude of the distributions will be chosen to support price stability. Distributions will increase if price increases too rapidly and will decrease if price declines.

We are trying to keep coin bounties, project awards and distributions as public as possible. However, everyone is very busy and no one has had time to keep the ledger updated. We want to get the majority of the coins in users hands within five years. We do not want to end up in a situation like Ripple where the developers control 98% of the coins and are threat to price stability.

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[altcoinUK]

@skycoin

Thank you for the above technical overview, background info about the  project and sharing your view on digital currency. It's absolutely amazing material, really inspiring and can't wait to see the implementation :-))

[Korean]

Thank you.


Regarding the last update that you had. You mentioned that participate will be capped at 5 BTC each. That is no longer valid?

IPO:

Development is taking forever. Too much going on that is delaying actual work.

What we will probably do, is have a pre-IPO "order commitment". Users will Bitcoin account histories and/or Github accounts and project contributors will be allowed to commit to IPO, up to percentage of the IPO. Participation will be capped at 5 BTC and the cap will go down as the pool gets depleted.

Then the people who have been following project for a while, will get a guaranteed commitment to IPO, without worrying about timing. Then rest of IPO pool will be released after launch.

After the IPO, the rest of the coins will be allocated as salary and bounty for contributors who are working on projects which increase the value of Skycoin. Most of the coins will probably be allocated for the mesh deployment as incentives.

Also, will it still be a 50k IPO?

How the IPO Will Work:

1 million coins (1%) will be sold for 50k in Bitcoin.

Reasons for the Structure of the IPO:

The reason a 50k IPO was chosen was because we have experience with previous coins. We know investors who buy up allotments of coin in the IPO, wait until the price goes up 30x and then DUMP the coin, completely destroying the equity of the other coin holders.  A coin going from a 1 million to 50 million dollar market cap, with 30% of the IPO investors dumping, needs between 5 and 15 million dollars capital inflow just to maintain the price. Skycoin is not a pump and dump and a smaller IPO reduces the impact of speculator dumping and improve price stability.

A majority of the Skycoin will be distributed to the user base within the first five years. We learned the mistakes of Ripple and will not repeat them.

We believe that distributing all the coins at once, hurts the users who came in later and are committed to a gradual, Bitcoin like distribution. Mastercoins and other coins that did a single large IPO, failed to create an incentive for users who came in after the IPO and there was no financial incentive for later users to adapt the coin.

[Jungian]

Will there be escrow?

[Jerrietg]

Will there be escrow?

yes  we need escrow

[tobeaj2mer01]

IPO:

Development is taking forever. Too much going on that is delaying actual work.

What we will probably do, is have a pre-IPO "order commitment". Users will Bitcoin account histories and/or Github accounts and project contributors will be allowed to commit to IPO, up to percentage of the IPO. Participation will be capped at 5 BTC and the cap will go down as the pool gets depleted.

Then the people who have been following project for a while, will get a guaranteed commitment to IPO, without worrying about timing. Then rest of IPO pool will be released after launch.

After the IPO, the rest of the coins will be allocated as salary and bounty for contributors who are working on projects which increase the value of Skycoin. Most of the coins will probably be allocated for the mesh deployment as incentives.

Is everyone legal to the pre-registration or just the guys who has been following this big project at the very beginning as you stated before NOW?

[LemonAndFries]

IPO:

Development is taking forever. Too much going on that is delaying actual work.

What we will probably do, is have a pre-IPO "order commitment". Users will Bitcoin account histories and/or Github accounts and project contributors will be allowed to commit to IPO, up to percentage of the IPO. Participation will be capped at 5 BTC and the cap will go down as the pool gets depleted.

Then the people who have been following project for a while, will get a guaranteed commitment to IPO, without worrying about timing. Then rest of IPO pool will be released after launch.

After the IPO, the rest of the coins will be allocated as salary and bounty for contributors who are working on projects which increase the value of Skycoin. Most of the coins will probably be allocated for the mesh deployment as incentives.

Is everyone legal to the pre-registration or just the guys who has been following this big project at the very beginning as you stated before NOW?

+1

The more info I am given about this project, the more I like it.

I am definitely interested in seeing what the IPO options are.

[coin@coin]

Thanks for the updates @skycoin! The IPO sounds very promising in terms of how fair will it be and I'm glad everyone will be treated the same.
Also hope that development can continue to progress smoothly.

Yes please make sure the OS X version is ready for the IPO, if possible, that would be good for all Mac users out there 

[delulo]

UPDATE:

The registration app is compiling but not working on 64 bit OSX with golang 1.3.  We are getting a segfault in one of the dependency libraries. OSX might have a cache we are not clearing out.

The build engineer for OSX is on vacation until the 2nd. So IPO pre-registration will begin on the 4th and last two weeks.

Thank you.

In the meantime, can you describe what pre-registration means?

What is the IPO details? Max cap? Limit of registration? Number of coins released?

Would the people that have contributed in the past be preferred?

Does the order of registration matter? How quick we register?

Yes. Preregistration generates a public key for you and then sends it to us through Bitmessage. You have to write down your private key, because you will need it later.

You also send
- your Github account name
- Bitcoin talks name
- Approximate number of Bitcoin you want to put into the IPO

Pre-registration is to gauge IPO demand and control IPO so its fair. There are 100 million Skycoin. Between 2% and 10% of the total Skycoin will be sold in the IPO. The valuation will be 10 million in the first round IPO.

Pre-registered users will be able to use their private key to participate in the IPO. The IPO is designed to be over subscribed. If you send 10 coins, only 2 of them may end up participating in the IPO and you will receive 8 coins back. This is to ensure coin scarcity and to deter speculators.

After the IPO, a spreadsheet may be published with bitcoin addresses in/out, balances and Skycoin awarded, so that fairness of the coin distribution can be publicly verified. Some information will be omitted to protect privacy.

The IPO may have tranches. The first tranche is equitable and designed to make sure everyone gets coins at the IPO valuation. Developers will get a bonus in this tranche. Then there is the whale tranche and is a free for all.

The IPO may be split into a series of smaller IPO, but it is not decided yet.

The Skycoin IPO is not a first come first serve IPO. There is no bonus for sending Bitcoin early at the beginning of the IPO period. All participants within the IPO window are treated equally. The IPO is not uncapped with unlimited amount going into the IPO.

After the IPO, there will be rolling distributions, where people can buy newly issued coins. Instead of issuing coins in a big-bang IPO, which only enriches the people involved in the IPO and deters new users (Mastercoin style IPO), Skycoin will be issuing the coins over time in a continuous process, with supply of new coins tapering and decreasing over time. The magnitude of the distributions will be chosen to support price stability. Distributions will increase if price increases too rapidly and will decrease if price declines.

We are trying to keep coin bounties, project awards and distributions as public as possible. However, everyone is very busy and no one has had time to keep the ledger updated. We want to get the majority of the coins in users hands within five years. We do not want to end up in a situation like Ripple where the developers control 98% of the coins and are threat to price stability.

Did you think about legal implications? I would not ignore it...

[kripto]

devs, you really make me feel there is hope for humanity to become more egalitarian... thanks and good luck!

[prix]

The first version was in python and was completely working. Then codebase was moved to C++, then moved to Golang.

As it is familiar to me

[Issac]

the ipo is so stupid 2%~10%? lol

[constary]

Will there be escrow?

yes  we need escrow

sorry,  its no escrow 

[Jungian]

Will there be escrow?

yes  we need escrow

sorry,  its no escrow 

Source?

[Jungian]

SKY looks interesting! I'll be following the process and am interested to see where this goes from here.

EDIT: I also like the rolling distribution model. It seems like a good way to promote fair distribution and maintain ongoing interest in the project.

Why do you think that is a fairer way to distribute the coin? It feels very unsure.

[check07]

1. Which are the advantages of preregistration if it is not first come first serve Ipo? 
2. When will begin the Ipo? 

[OBIkenobi]

"As soon as we release it publicly, no more major changes to the blockchain format can be made. It would require a full blockchain reset."

This sounds like a serious issue to me... How will you fix potential bugs then?

[lovely89]

"As soon as we release it publicly, no more major changes to the blockchain format can be made. It would require a full blockchain reset."

This sounds like a serious issue to me... How will you fix potential bugs then?

I agree, it does sound worrisome but he says "major changes". This implies the way it functions, bug fixes wont change the functionality, they will simply be version updates. I would imagine it's like changing bitcoin from pow to pos. That would be major.

If it's thought out and tested thoroughly then there would be no need for major changes. Worst comes to worst though' a duplicate could be made for a one way peg.

[ebite]

Is this the official thread of Skycoin? Still in development?

[Jungian]

Is this the official thread of Skycoin? Still in development?

Yes it is. IPO coming up.