[ANN] Swarm Fund 1.0 - [OFFLINE THREAD]

[Malibusparky]

Some good feedback from community members and well put responses from fractastical has swayed me to the yes side. I am as excited as I was when I first decided to buy swarmpre. The future looks bright...... I gotta wear shades.

You should take a picture with the shades and post it  

[fractastical]

+1 

[fragout]

If phase 1 is filled. 1 btc = 5333 average swarmcoin. Swarmcoin goes onto an exchange and coins are bought and sold.
Then at some stage in the future, phase 2 starts with 68 million swarmcoin up for grabs. What if it is not filled and after dividing out the 68 million, it works out as 1 btc = 20,000 swarmcoin?? Are the initial investors getting a raw deal and will the price collapse at the exchange?
Im sure i am getting this wrong  but pls help me understand whats going to happen.

[fractastical]

If phase 1 is filled. 1 btc = 5333 average swarmcoin. Swarmcoin goes onto an exchange and coins are bought and sold.
Then at some stage in the future, phase 2 starts with 68 million swarmcoin up for grabs. What if it is not filled and after dividing out the 68 million, it works out as 1 btc = 20,000 swarmcoin?? Are the initial investors getting a raw deal and will the price collapse at the exchange?
Im sure i am getting this wrong  but pls help me understand whats going to happen.

Here's one possible scenario. We issue a SWARMPRE2 for the second round. 34 million out of 68 million are sold. This makes 24 million SWARMPRE and 34 million of SWARMPRE2. SWARMPRE holders each get 1 SWARM per SWARMPRE, then SWARMPRE2 holders each get 1 SWARM per SWARMPRE2. Then the remaining 34 million are distributed proportionally to the holders of SWARMPRE and SWARMPRE2.

That's a bit complicated but it would avoid the problem you mention. Keep in mind that any proposal like this would be put to a vote for SWARMPRE holders to decide.

[Malibusparky]

Here's one possible scenario. We issue a SWARMPRE2 for the second round. 34 million out of 68 million are sold. This makes 24 million SWARMPRE and 34 million of SWARMPRE2. SWARMPRE holders each get 1 SWARM per SWARMPRE, then SWARMPRE2 holders each get 1 SWARM per SWARMPRE2. Then the remaining 34 million are distributed proportionally to the holders of SWARMPRE and SWARMPRE2.

That's a bit complicated but it would avoid the problem you mention. Keep in mind that any proposal like this would be put to a vote for SWARMPRE holders to decide.

In this scenario I wonder how much more will SWARMPRE2 be? 10x? Or does it depend on how awesomely SWARMCOIN has been developed at that point? Is it not standard to assume early investors SWARMPRE deserve a much better rate than later investors who get to see an actual product SWARMPRE2?

[tk808]

Coins Source's article for SWARM

http://www.coinssource.com/swarm-on-the-way-to-raising-4500-btc/


Best of luck!

[fractastical]

I hate to reverse myself, but I was just reading this article on "The 10 Most Funded Kickstarter Campaigns Ever" and I would really like the first serious crypto-crowdfunding campaign to get onto that list.

Unfortunately that means raising $3,401,361.

Let the votes come in!

[fractastical]

In this scenario I wonder how much more will SWARMPRE2 be? 10x? Or does it depend on how awesomely SWARMCOIN has been developed at that point? Is it not standard to assume early investors SWARMPRE deserve a much better rate than later investors who get to see an actual product SWARMPRE2?

It definitely depends on awesomeness. And it's quite reasonable to assume that early participants deserve a better rate.

I hope by that point we are able to do some sort of better price discovery mechanism than currently exists in these not particularly liquid crypto markets.

[fractastical]

Results of vote currently displayed on our blog (live stats).

[geniusboy91]

I'm in favor of ending the crowdfunding after round 1, and then distributing all 92 million investor SWARM immediately. It doesn't appear that is an option.

Here is my question:
For simplicity, let's say 92% of the SWARM will be owned by the investors and 8% by the company/founders/etc meaning investors should get 92% of the "dividends". If YES is voted and you only distribute 24 million SWARM, the investors are essentially only getting 24% equity in the company, and the founders are holding on to the other 76% instead of 8%? Is the company able to vote with those SWARM? Will us investors still get our 92% if 68 million SWARM are not being distributed?

It seems like we should be getting our equity, distribute all 92 million, and then later be able to vote if we want to give some of our equity away to raise more money.

Please ignore the legal use of equity/company/etc. I understand it is not legally equity.

[open82buy]

I am in and have my coins 

[fractastical]

If YES is voted and you only distribute 24 million SWARM, the investors are essentially only getting 24% equity in the company, and the founders are holding on to the other 76% instead of 8%? Is the company able to vote with those SWARM? Will us investors still get our 92% if 68 million SWARM are not being distributed?

That's not quite correct. Swarm will not be able to use the 68,000,000 SWARM. They will be held in a special locked account. As with anything on the blockchain, you can easily see where they are and if they have moved.

It seems like we should be getting our equity, distribute all 92 million, and then later be able to vote if we want to give some of our equity away to raise more money.

This makes sense conceptually but in a decentralized system like Counterparty once an asset is locked, it is locked forever. Right now there is no possible way to take back SWARM from people who have it or to issue more SWARM. I think that's generally a good thing, but it does make any sort of system such as you describe more or less impossible.

[mishax1]

Haven't seen this been answered here so I'll ask again,

What is the XCP/Swarm rate from the IPO and how does it calculated ? Is a fixed amount ? Is calculated by the market price ?

Is this like a national secret or somethings ?

[fractastical]

I will ask again...  what happens if there is NEVER a second fundraising phase?  

Not quite sure how to answer. If nothing happens than nothing happens. Those 68,000,000 coins will sit in some locked account and potentially we could even burn them counterparty-style. The ability to burn Counterparty assets doesn't exist right now but I know PhantomPhreak has considered adding it in.

[fractastical]

Haven't seen this been answered here so I'll ask again,

What is the XCP/Swarm rate from the IPO and how does it calculated ? Is a fixed amount ? Is calculated by the market price ?

Is this like a national secret or somethings ?

Oops, the spreadsheet link was posted on one of these earlier pages. Let me search for it again.

Ahh, here it is:  https://docs.google.com/spreadsheets/d/1HAQDLO2MYDuoGcJ3HeO-rFxCNQShtvtY_PeooHhHhpg/edit?usp=sharing

Short answer it is market rate with no preference for XCP, calculated the same way BTC is calculated.

[mishax1]

Haven't seen this been answered here so I'll ask again,

What is the XCP/Swarm rate from the IPO and how does it calculated ? Is a fixed amount ? Is calculated by the market price ?

Is this like a national secret or somethings ?

Oops, the spreadsheet link was posted on one of these earlier pages. Let me search for it again.

Ahh, here it is:  https://docs.google.com/spreadsheets/d/1HAQDLO2MYDuoGcJ3HeO-rFxCNQShtvtY_PeooHhHhpg/edit?usp=sharing

Short answer it is market rate with no preference for XCP, calculated the same way BTC is calculated.

Thanks.

[jay_pilch]

So if there is never a second round, the founders will essentially hold 8 million or 25% equity.

Addit:

Thinking logically.

If we vote YES, and we assume 4500 BTC is raised. 24 million SWARM will be distributed to the investors at an average rate of 24'000'000SWARM/4'500BTC = 5333 SWARMperBTC

If we vote NO, 92 million SWARM will be distributed to the investors. 92'000'000SWARM/5333SWARMperBTC = 17251 BTC.


Therefore....
With the assumption that Market Cap is directly proportionate to BTC raised.

If the investor believes less than 17251 BTC will be raised by July 20, it is in their best interest to vote NO. If the investor believes more than 17251 BTC will be raised by July 20, it is in their best interest to vote YES. However, this will come at the expense of the founders' equity share.

Just my 2 cents.

[dadon]

i sent btc from counterwallet to address on swarm website it has been around 2 hrs still have not received. any ideas how long it takes?

[tobeaj2mer01]

When will this ipo end?

[fractastical]

i sent btc from counterwallet to address on swarm website it has been around 2 hrs still have not received. any ideas how long it takes?

4 confirmations before it is sent out.



Looks like some especially long blocks recently so probably it is just a matter of waiting a bit longer.