EOS' Distribution Sale: A Simple App That Could Level The Playing Field...?

in eos •  last year

The buzz has been building about EOS. The the token sale dates were announced yesterday.

(If you happen to be late to the party or have yet to catch up on the details of why EOS might just be kind of a big deal, read this great post from @trogdor):

Introduction To EOS: The Epic (Blockchain) Operating System

Now, contrary to how most ICOs have been launched lately - huge hype, millions sold out in minutes - @dan (yes, the same Dan Larimer behind Steemit and Bitshares) and his team have chosen a different model for the EOS token distribution. Short and simple:

The sale lasts 341 days. 20% of the total one billion tokens are sold during the first 5 days with token price = (amount contributed / 200,000,000).

Then, another 2,000,000 tokens will be released for sale each 23 hours after, price = (amount contributed / 2,000,000).

Tokens sold from each period, once distributed via an Ethereum contract, will also then be tradeable on exchanges.

So, this kinda makes things a little bit complicated.

This post from the official EOS Steemit blog explains some of the rationale behind the structure of the distribution sale quite well: Logically Consistent Principles for Token Distributions. The simple explanation: they want this to be fair and for everyone to be able to participate, paying a fair market price.

However, for those not experts in game theory and mathematics, it might get a bit confusing if trying to figure out how/when to buy for/at the best price...



Now, I'm not gonna even pretend I've figured this out.

But I will share some insights I've gleaned glancing over this - and a few ideas as to how we could collectively make this more of a win-win-win for everyone involved.

I could also be completely off in some of my assumptions or calculations - so if there are flaws in any the logic herein, do please correct me.

Off the bat, I'd say it would probably be the riskiest to invest during the first 5 days. Why? Well, I put this chart together in attempts to assess how pricing worked, which might explain a little better:



Assuming I don't have everything backwards, the only way those investing during the first 5 days will get a lower price than later on in the sale is if a huge amount is contributed.

Now, I'm not expecting anyone to break this down here. Truthfully, my head is spinning looking at it and trying to figure it out. But through this, we progress to a key point:

Without being able to transparently see exactly how much has been contributed to the contract each period/day, it's a guessing game as to what price we're paying during the crowdsale.

Now, I'm sure there is some way for those techie-geniuses well-versed in Ethereum coding to extract such data from the contract and feed it into "sniper bots" that can donate within the last seconds of a period/day if the pricing matches their criteria. Though for the rest of us who have no clue how to get into that side of things...

We could use some help in this department.


i.e. a website similar to www.SteemDollar.com that pulls data from the contract and summarizes the daily contributions, and thus daily/period token price.


That way, anyone could see at any point in time both what the market price of buying tokens on the exchange is and what the maximum price of purchasing direct through the contract's daily distribution pool would be.

Surely, such transparency would help level the playing field, with anyone wanting to buy having easy access to seeing the price if buying direct from contract.

How exactly this will all play out, with tokens then available for trading on the exchanges as well... I dunno. But for someone simply wanting to simplify buying at a most-fair price, I think a straightforward app like this would be great.

Who could build it and how? I dunno. But if anyone wants to step up and take on the task, you'd probably be doing a great service to the community.



Any way it goes, this shall be an interesting ride.

Looking forward to the shared journey.

Feel free to drop your thoughts, insights, feedback, and input below to add to the conversation...

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The EOS token distribution is run entirely on the Ethereum blockchain over a period of 341 days. @eosio

You said the sale last 365 days. I think you should correct this.

I agree with what you say in this post. We'll see how it goes.

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good catch. got the 365 from the earlier releases, though it had been updated with the official release. corrected.

so, should I buy tokens at a later time after a month? do you think the price will go up

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I can't advise what you should or shouldn't do, other than to educate yourself and make your own decisions.

Personally, the only reason I'd see to invest in the first five day period is if it was transparent that there was a HUGE sum of like a billion dollars already contributed that'd put the price for that period at a relative low.

Otherwise, I'd be watching day-to-day at the very end of the 23h periods as to what price is relative to earlier periods and what the exchange prices are - which would be tough without an app like suggested above or knowledge of how to read the contract coding as it updates...

Hope this helps out some people, wish us all good luck https://steemit.com/eos/@dowha/5jy9k-why-you-should-not-buy-eos-on-the-first-ico

There is a way to determine the price of the EOS through the contributions so far, by using the token distribution interface. It lists right there how much contributions have there been so far during that particular window. The way to know the price is to divide the total contributions so far (in dollars) over the number of tokens in that particular window.

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well I'll be damned. seems they've got that base already covered. thanks for the clarification. :-)

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yeah :)
you're welcome!

thank you for posting i really informative i think i should also share :)

What brilliant analysis, thanks a lot!

Not gonna lie I'm really excited for this ico. I've been ignoring basically all of them lately due to the overhyped nature (seems like every year or two it's something new, last one was the blochchain now it's any and every ico) and just finding coins I'll track later on but I'm super excited to invest in eos.

Love your posts as always dude.

Thanks for sharing. We definitely need a better distribution model than recent sales. Even Civic, which was supposed to be "fair," I got shut out of... probably for the better. EOS will be interesting.

Very interesting...I hope you will continue to keep us all updated. Very exciting times, I feel blessed to be on the front lines here at Steemit!

Can you provide any clarity on this in regards to the token sale...
"US-IP detected, participation not allowed"

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Mmmm... as in that is the message you're getting when trying to go to the EOS website?

Does it say in the terms/agreement that US citizens can't invest? T'is possible, as some ICOs - like Blockchain Capital's, run by brock Pierce who is a partner in EOS, do have that limitation - in which case, the website could be checking the location of your IP address...

In which case, the workaround could be to get a VPN and select a server outside the US...

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That is the message that I get whenI go to the get tokens section.

I see. Thanks for the clarification....why cant the good things in life be easy :)

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cuz they'd lose their value, and wouldn't taste nearly as good after the struggle... :-)

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very true.... :)

Thank you for your analysis that helps me a lot to understand this new crypto. I will follow you because I need someone like you to help me understand what is going on in crypto

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any particular aspects you're most interested in or feeling stuck with at the moment?

I'd be happy to help direct you to some of the previous posts I've made that may shorten your learning curve, though don't want to overwhelm with too much info at once.

lemme know where you're at, what you need, and what you're looking for, and I'll share a few posts specific to kickstarting in that direction... :-)

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@izbing

Good to have you here! I have to say you are quite the machine!

3053 posts
1375 followers
2244 following

In less than 3 weeks!

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less than 3 weeks?? I been here over a year now...

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Not you @rok-sivante!! Sorry for the confusion!!

I meant @izbing!

EOS looks like it has a lot of good hype, hope the ICO gives you some big cash trading or listing @rok-sivante

thats great , i upvoted and followed you. please do the same for me
@wicky

Excellent publication !!! Upvoted and check my posts and follow me please !! Greetings.

Excellent publication. Upvoted !!! Check my posts and follow me please !! Greetings.

When EOS is available to purchase, people are making it out to be like an IOC. Does this mean that we need to trade ethereum to buy it through a wallet that supports smart contracts?

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Screen Shot 2017-06-23 at 2.03.23 PM.png

Screen Shot 2017-06-23 at 2.04.44 PM.png

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Thanks for the great help! Got Metamask.

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Will need to buy with ETH, yes.

Saw a post somewhere clarifying how to buy, simplifying the process for different wallets - can't recall which exactly now, though should be able find out if you dig a bit... any Ethereum client or something like MyEtherWallet should do the job well....

thank you for sharing

I hope this ICO work well because the latest big one Bancor has disappointed a bit as there was huge dump on its listing at Bittrex.

This is a very interesting article. I've been wanting to buy some tokens, maybe I will. Thank you for this well written post! :)

What do you think its effect on the price of ethereum is going to be?

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I have no idea.

Hey, i really didn't understand your calculations.
You said "the only way those investing during the first 5 days will get a lower price than later on in the sale is if a huge amount is contributed."
But why??
From the distribution formula , No. of tokens you get = Amount of ETH you sent *(Total Tokens/Total ETH sent)
So, the price of 1 token will be = Total ETH sent/Total token available for distribution .
So, if huge amount is contributed, price of EOS token will be higher.

For example, if i contribute 1 ETH and total ETH contributed is 100 ETH, i will get 1% of token distributed. And its price would be 100/ total token distributed.

If i am not wrong you have used reciprocal of the formula for price calculation.

Please correct me if what i am saying is wrong..

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It appears I may have been dyslexic in my calculations, are you are most likely correct.

Well that's slightly embarrassing. Lol.

Thank you for the clarification.

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It happens to everybody. :)