Whitepaper Examples of Uncapped Blind ICO Auctions

Hello Friends!

I have prepared three whitepaper examples of Uncapped Blind ICO Auctions. My proposal for Uncapped Blind ICO Auctions can be found here: https://steemit.com/ico/@roosterred/a-fair-ico-model-roosterred-s-uncapped-blind-ico-auctions

I hope you can see that the basic idea is strong and it can be altered to create a range of incentives, from favoring poor participants, to favoring early bidders, and more. It is a highly adaptable model. I didn’t give much thought to the numbers I used here, so I am not claiming they will be typical.

Example One: Simple and Pure

Token Sale: We will offer half of our total one million tokens up for public auction over ten days. We will never issue more tokens. All tokens are fully exchangeable one-for-one if we decide to switch blockchain technologies. One quarter of tokens will be distributed to the founders. One quarter will be kept by the company as assets. If we have to sell any, it will be publicly declared at least five days before hand.

Bid Instructions: We have outlined a range of possible market caps earlier in this whitepaper. We will let the bidders decide the ultimate market cap. There is no price floor or price cap. Bidders will use the bidding wallet to transfer how much Ether they are contributing to the ICO and indicate the maximum market cap of of the public sale they are willing to tolerate.

Auction Overview: The auction will last from 12:30 GMT Monday, October 9th, 2017 until 12:30 GMT Wednesday, October 18th, 2017. All bids will be treated equally. The bids will be ranked by market cap in descending order. Bids of the same market cap value will be ranked randomly. The Smart Contract will calculate the maximum market cap that can be funded. Bidders whose market cap bid is under this funded market cap will be automatically refunded when the auction is over. Some bidders at the market cap may be refunded too, which will be determined by the random ordering. We will cover all transaction costs.

Commentary: This is a pure Uncapped Blind ICO Auction.

Example Two: For the People

Token Sale: We will be offer eighty percent of our total one million tokens up for public auction over ten days. All tokens are fully exchangeable one-for-one if we decide to switch blockchain technologies. The remaining two hundred thousand tokens will be distributed to the founders, team members, and shareholders. All these tokens cannot be traded for one year.

Bid Instructions: We have provided an independent evaluation of the probable market caps of our token in five years. It is up to the bidder to decide what they believe the market cap will be, and what they are willing to tolerate now. There is a reasonable price floor of fifty thousand Ether for the token sale market cap, as that is the lowest market cap we can tolerate expense wise. All bidders will submit his or her maximum market cap of the public sale that he or she would tolerate, and the amount of Ether offered. Market cap bids are required to be in tens of thousands of Ether.

Auction Overview: The auction will last from 12:30 GMT Monday, October 9th, 2017 until 12:30 GMT Wednesday, October 18th, 2017. All bids will be evaluated first by market cap, in descending order, and then by amount of bid, in ascending order. Identical bids will be randomly ordered. Once the maximum funded market cap is identified, bids under the market cap and bids position out by the random ordering will be refunded. All transaction costs will be covered by us.

Commentary: This auction favors the poor over the rich. In order to do that, you need to create the situation where it is probable that multiple bidders have the same market cap bid. This is why market cap bids have to be in tens of thousands of Ether. Traditionally in economics, this would be seen as lowering the ultimate market cap as rational bidders would never bid more than they would tolerate so they would always round down. This won’t always be the case because of FOMO and other psychological quirks we know bidders will have. It is an empirical question, and the answer likely varies with circumstances.

Example Three: The Risk Averse Company

Token Sale: We will be offering one third of the initial fifteen million tokens up for public auctions. The two auctions, A and B, will take place over ten days. Auction A is only for bidders transferring more than two thousand Ether. There are no restrictions on Auction B. The remaining 10 million tokens will be divided as follows: three million to the founders with one year vesting period. Two million to the employees with one year vesting period. Five million to shareholders. Inflation will be initially ten percent a year, but we reserve the right to alter this rate depending on market circumstances.

Bid Instructions: Bidders in both auctions will submit the amount they are bidding and the maximum token price they will tolerate. The maximum token bid will be rounded to the nearest one one hundredth of an Ether.

Auction Overview: The auctions will last from 12:30 GMT Monday, October 9th, 2017 until 12:30 GMT Wednesday, October 18th, 2017. Each Auction will be for 2.5 million tokens. Bids will be ranked by token price in descending order, and then by bid time in ascending order (early bidders favored). Duplicate bids, if they should occur, will be given random order. All participants who are priced or positioned out will be refunded. We will cover all transaction costs. We reserve the right to refund all bidders if auction fails to raise a certain amount of funds.

Commentary: The auctions didn’t have to be done simultaneously, but if the result of the first leaked it would favor participants in the second. The company cares about encouraging the rich to participate. They can participate in both auctions which allows them to minimize their risk to a certain extent. The company wants to favor early bidders too, believing this helps attract more participants. I basically tried to recreate the incentives that capped ICOs currently create.

I feel this is a great system. Please share it.

Pay me if you use my information!
BITCOIN (BTC):: 1jsF3BFYNGRG7rtzjuKbtPURcKzod4etq
ETHEREUM (ETH): 0xa26724b29Ee557960eB9A92d659BB88ddA8d47d1
LITECOIN (LTC): LTEU39XFtD1nj1QqpuVf97ok8F5bFL5VeK
ARK (ARK): ATkSmt2LqAwKm6zmd8aYwZB4cUEZGrcCym
MONERO (XMR): 48nXBajorzkZLeotCBw1XgYaUgENGuxS1hhK75hoGgUSQVHsoVa3EWj86EvqKjeorUY77SVu8fj8TPevfz3dnmX567djac2

Your Friend,
RoosterRed
[email protected]
MONERO (XMR):

Note: I usually have to correct grammar mistakes in my articles, so this will likely slightly change. It is usually little, inconsequential mistakes like “their” instead of “there”.