Dear EOS.IO Community,
Today block.one is happy to share a first draft of our upcoming token distribution smart contract.
(“EOS”) Tokens will be distributed as an ERC-20 compatible token on the Ethereum blockchain. The repository containing the EOS Token Sale smart contract can be found at https://github.com/eosio/eos-token-sale.
We will be conducting a 2 week public trial run of the sale on the Ethereum test network. We welcome anyone interested in learning how the sale works to participate in the trial. A follow up email will be sent with instructions on how to participate in this trial when we deploy the trial contract to the test network.
Please note that no information regarding the final terms and timing of the sale is being released at this time; everything released today is subject to change and provided for information and feedback purposes only.
Update on Rationale
To supplement the recently released proposed code for the EOS token sale that will be used in a trial token sale, this document is designed to explain our primary goals behind the code structure.
ERC20-based tokens on the Ethereum platform (“EOS”) will be sold over a period of approximately one year.
When designing the EOS distribution system, the primary goal was ensuring as fair and wide of a distribution as possible; we aim to achieve this by focusing on the following three objectives:
1. Equal Opportunity
In order to ensure that everyone can participate, EOS are not sold for a fixed price; they are sold at a price determined by market demand for their acquisition. This is achieved by distributing a fixed amount of EOS (supply) proportionally toward the daily ETH proceeds (demand).
2. Broad Awareness
Distribution can only be as wide as the number of people that are aware of the ability to get involved. By stretching the distribution process out over the course of approximately 1 year, the community has the time to gather information and assess project merits before early stage windows of opportunity are closed.
3. Fair and Auditable Incoming Value
An Ethereum smart contract proves the receipt of incoming value for the creation of each EOS token. This process:
- Mimics the economics and distribution access of traditional PoW mining contributions
- Preserves the value lost to hardware and electricity for PoW
- Makes it easy for everyone to participate
- Eliminates unfair advantages associated with economies of scale