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Author Topic: Extra reward for special trust  (Read 78 times)
m.roth (OP)
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/be the change/


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September 23, 2018, 04:32:02 PM
 #1

In times like these, ICOs may attract investors with additional incentives. One possibility is via the distribution of unsold tokens to investors, to increase their relative share of tokens compared to the founders and the organization, which usually receive a fixed amount of tokens. This can be done via airdrop, not to confuse with airdropping a small amount of tokens to a community (almost) for free; see https://medium.com/@FundFantasy/unsold-tokens-keep-burn-or-airdrop-them-part-2-c2d9305f94e9.

When a certain hardcap is reached, there are no tokens left to distribute. But when only let's say the softcap is reached, one could reward investors, which believed in you, when others didn't. But you probably want to give a little extra and not the whole gap amount between soft and hardcap, since it decreases the relative share of the founders/organization and you're giving away shares for free. One possibility is for example to give away half the amount of the tokens which were sold in addition multiplied with  the percentage of unsold tokens.

Example: Softcap 5mio, Hardcap 50 mio:

- 5 mio reached: 2.5 mio x 90% = 2.25mio of the unsold tokens distributed to the investors according to their investment.
- 10 mio reached: 5 mio x 80% = 4 mio of unsold tokens distributed to investors.
...

This of course increases the (unnecessary) complexity and decreases the value of one token. The total value for the investors should be a little higher compared to burning all unsold tokens, since they get more tokens, but with less value. However, this could lead to a downward trend maybe?

The topic may not hold a substantial amount of relevance, i would still love to hear what you think about this idea though!
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