🌐 Logically consistent principles for the distribution of the EOS token
Today, we are pleased to provide you with a timetable for the distribution of the token, which will begin on June 26, 2017 at 13:00 UTC.
The procedure for distributing the EOS token
The distribution of the EOS token will be carried out entirely on the Ethereum blockade for 341 days. Over the entire period, 1 billion (1,000,000,000) tokens will be distributed in the ERC-20 format. During the first 5 days, two hundred million (200,000,000) or 20% of the EOS tokens will be distributed. An additional seven hundred million (700,000,000) EOS tokens will be distributed in installments of two million (2,000,000) every 23 hours. Finally, 100 million (100,000,000) or 10% of the EOS tokens to be distributed will be reserved for block.one as an EOS.IO developer and will not be sold or transferred to the Ethereum network during the entire distribution period.
The distribution of EOS tokens is similar to an auction where the price for all is the same and is the maximum that everyone wants and can pay in a given period of time. By the end of the 5-day interval and at the end of each 23-hour interval described above, the corresponding number of EOS tokens specified above will be distributed proportionally among all authorized buyers in accordance with the total amount of air ("ETH") contributed for Corresponding period of time.
Principles
At the heart of the EOS token distribution scheme are the following logically consistent principles:
No one should receive anything for nothing
Everyone should get a certain market price
All should have equal opportunities to participate
Availability of incentives for developers
Purchase of more than 50% of distributed tokens should be economically unprofitable
The cost of the transaction (commission, mining, etc.) should be as low as possible.
Let's look at each of these principles in more detail.
Something for nothing
In a free market, deals between two people are concluded when both are satisfied with their terms. If either party considers the transaction to be "unfair" - the transaction is not carried out. If one of the participating parties does not provide anything in return for the purchased one, then such a transaction is considered to be a free transfer or free distribution. Unfortunately, in reality there are no free hands. Someone has to pay for everything, and this means that when someone got something for free - someone else broke up with something without getting anything in return.
If you try to sell 90% of tokens at a price below the market at the same time, someone will receive something for free, and someone, on the contrary, will spend money without receiving anything in return. The distribution of tokens will be truly fair only if it allows the market to determine the value, taking into account the interests of both parties to the transaction. This also minimizes the likelihood of both significant losses to the buyer and significant costs to the seller.
Market prices
Unfortunately, it is impossible to predict the market value of a cryptographic token. Its current price will allow to determine only a significant amount of trading on the open market. Such markets can take the form of exchanges or auctions as long as they are open, transparent and accessible to a wide range of people. Moreover, even if the value is accurately determined at the initial time of the distribution, it can significantly change the next day.
The market value of a commodity usually balances between supply and demand, being somewhere between the price for which no one is willing to sell, and at a price that no one will pay. As a result, market value is a unanimous consensus, manifested in the spread of disagreement among all sellers and buyers.
Equal opportunities for participation
Providing everyone with sufficient time and opportunity to participate means using a widespread platform and giving people the time they need to study the project.
The distribution of tokens should maximize the differences between participants in the available time, tools or technical skills. For example, mining gives an advantage to technicians with time and money, and a limited offer helps those who have money and the technical ability to automate the fast process of buying.
Incentives for Developers
Supporting the community, you hope that the interests of all its members coincide. And this is true, regardless of the nature of your participation - you create a new application, buy a service, invest directly in the business or buy its tokens.
A developer who sells 100% of tokens at the very start of the project does this at the lowest possible price and no longer has an "interest in the game" that could motivate him to continue developing the product and increasing its value over time.
The developer, who plans to sell 90% of tokens during the year, has a certain incentive to achieve the maximum possible result in the shortest possible time. It also allows tokens holders and potential investors to observe how the software develops over time. The remaining 10% of tokens support the developer's interest in the long term.