How LVL Tokens will Maintain their Liquidity

in #bitcoin5 years ago

In order to protect the liquidity of our LVL token, the LevelNet team will be dividing contributions from our upcoming ICO into several distinct funds. This is being done in an effort to promote equitable, ongoing exchangeability for our participants following the success of our Coin Offering.

Many ICO’s have seen a similar problem, following the conclusion of their sales. Once an offering has ended, speculation surrounding the token begins to take hold, as contributors seek a quick and profitable exit. With no product, and therefore no utility by which tokens may be measured, asset values plummet once they have been listed for third party exchange. Projects who fail to take these facts into account do a significant disservice to both themselves, and their contributors.

How is LevelNet solving this issue and protecting contributors?

Simple, our ICO will only be considered successful in the event that our Soft Cap of $1.5M has been reached. Once this goal has been achieved, the money will be divided into several funds, specifically aimed at maintaining the liquidity of our LVL token.

Depending on the number of tokens sold during our coin offering, up to 40% of the funds raised will be transitioned into our ‘Buyback Fund’; a reserve whose function is to frequently buyback tokens, as the parameters of the funds smart contract have been met.

In the event that our Hard Cap of $50m is obtained, another development fund will be formed in the amount of 35%. This money will be used to fund LevelNet’s implementation and marketing strategy for two years.

By taking these steps, LevelNet hopes to ensure the stability of our token, and act in good faith to protect the best interests of our contributors for years to come.

Read more about our Funds Strategy in our Whitepaper.

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