The XYO Token Sale Economics were created in order to incentivize a diversified pool of participants. XYO Network's vision centers on becoming the standard when it comes to trusted location data, whether on-chain or off-chain.
The project's mission is to build a crypto-location network that our world can rely on for autonomous and secure location data. This means displacing our current reliance on centralized GPS, which lacks accuracy and faces issues with security attacks via device spoofing.
In crafting the XYO Network Token Sale economics, our objective is to create a diverse a pool comprised of token holders. Over 500 members participated in the Our XYO Token Pre-sale We filled the majority of our pre-sale in less than a week from over 500 participants. Some blockchain projects follow a model that results in a large percentage of their pre-sale token pool being controlled by one large entity (i.e. so-called 'ICO hedge funds'). We chose to avoid this path because it results in centralization baked into projects that are supposed to be founded on the idea of decentralization. We believe our XYO Token Sale Economics reflect this.
The figures displayed on this page reflect our current best estimate of the XYO Token Pool composition at the conclusion of the XYO Token Sale. The XYO Token Sale's price structure has dynamic price increases built into the smart contract. The price of XYO increases after each transaction. Additionally, the XYO Token during the Public Sale is pegged to the value of ETH. For these reasons, it is impossible to determine the exact amount of XYO distributed when the token sale ends. Therefore, the term 'Projected Cap' is used. Additionally, we are in the final stages of two major Enterprise Partnerships, which may change the Enterprise Partnership figures below by an estimate of 1-3%.
39.3% will be sold to the public during the XYO Token Sale. 100,000,000,000 XYO Tokens were generated at the beginning of the token contract start. After the XYO Public Token Sale concludes, all unsold tokens will be burned forever. The XYO received after this point will derive from the XYO paid by smart contract developers to crypto-location mining operators.
39.3% will be locked into a Cryptoeconomic Reserve via smart contract on a 1-to-1 basis for every token sold during public sale. Similar to the 'tap' variable introduced by Vitalik Buterin via the exploratory model of Decentralized Autonomous Initial Coin Offerings, the Cryptoeconomic Reserve may be tapped in order to provide incentivizes to network participants in the early years of the network's life. The Cryptoeconomic Reserve is used to provide the incentives necessary to jump-starting the foundation of the location network.
6.6% of XYO Tokens will be allocated to the team. To ensure the growth and success of the XYO Network, the team has vesting provisions and incentives via the company behind the XYO Network (XY). The team is bound with the responsibility of working in the long-term interest of both the shareholders and the token holders.
3.5% will be allocated to XY, a U.S. Delaware C-Corp and SEC Reg A+ Qualified Entity. XY has been building IoT hardware and location network technologies for over six years. With over 1,000,000 Bluetooth and GPS devices already built, XY will be jumpstarting the crypto-location mining network by developing ready-made crypto-location mining systems as well as Hardware Development Kits and Software Development Kits (SDK's) enabling developers to build their own crypto-location mining configs (Raspberry Pi's, for instance).
3.3% will be allocated to XYO Advisors with the standard terms granting the XYO Tokens on a monthly basis over the course of 1-year.
3.3% will be allocated to Enterprise Partnerships with multi-national brands spanning many markets (eCommerce, Sports, Transportation, Travel, Airlines, Insurance, Finance, Security, Drone Delivery, Self-driving Vehicles, Gaming and more). The XYO Network has active and pending engagements with many such brands (multi-billion dollar per year brands, which will be announced soon). This includes its fellow members of the Enterprise Ethereum Alliance, Trusted IoT Alliance, Bluetooth, IFTT and more.
3.1% will be allocated to active promotion of the XYO Network during the XYO Token sale. This includes Bounty Promotion programs.
1.6% of XYO Tokens were sold at Pre-sale across over 500 participants, which was open for a limited time and filled within a week.
XYO MAIN SALE
GAMMA Platform Sale; Crypto-location Miners; Exchanges*
$48M Projected Cap
Unsold & Unallocated Tokens Burned; All Sold & Allocated Tokens = XYO Token Pool
XYO Token Pool
*If you interpret this as expecting to sell your XYO on May 21st, 2018, please do NOT purchase XYO. This is not the project for you. Our goal is to build a cryptocurrency of lasting value; and we feel that by prioritizing and focusing first on our core underlying technology and developer experience, good things should follow (such as creating liquidity incentives for our crypto-location miners via being listed on the very top exchange there is).
"The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions..."- Bitcoin: A Peer-to-Peer Electronic Cash System ("Bitcoin White Paper")
With Bitcoin, the original purpose centered on removing the need for third parties involved in "small casual transactions".
Due to network actors that emerged, such as ASICs, which are dedicated computers built entirely for the purpose of cryptographic mining, Bitcoin's fees have sky-rocketed, making small casual transactions unfeasible, and leading to forks (Bitcoin Cash) and other cryptocurrencies.
Forks are a good thing, and more cryptocurrencies with unique properties serves as a good thing for the broader community; however, if Bitcoin were designed today (with 10 years of data in seeing how cryptocurrencies perform in the real world), we believe that certain tools would have been added to the network's design which would usher it towards its original vision of being used for small casual transactions, and less towards where it currently is: a currency with high-fees and used mainly as a Store of Value.
For this reason, we have created the Cryptoeconomic Reserve.
On January 5, 2018, one of Ethereum's creators, Vitalik Buterin, published an exploratory idea aimed at improving the ICO model by merging the benefits of the Decentralized Autonomous Organizations ("DAO") with the Initial Coin Offering ("ICO") model. The goal of the concept, which is termed a "DAICO", centered on minimizes the complexity and risks for the Token Holder.
DAICO's have not yet become the standard in the realm of new cryptocurrency projects; however the idea brought the idea of creating more Token Holder protections and introduced some novel cryptoeconomic concepts. One concept Buterin introduced, is a state variable called tap (units: wei / sec). The tap serves as a safe-guard to token holders to hold the project's team accountable in meeting the milestones of the project. This is done by setting the tap rate in which the funds can be withdrawn from the project's contract to be spent on developing the project and meeting its milestones. The tap rate specifies the amount per second that can be withdrawn from the contract. If the project progresses and even if additional requirements arise, the tap rate can be voted on and increased.
For this reason, we developed a Cryptoeconomic Reserve built into the smart contract of the XYO Token Sale. The purpose of this reserve is to have a mechanism that can be "tapped" in order to provide cryptoeconomic incentives to important members of the XYO Network ecosystem. This ensures that the XYO Network grows in the manner necessary to build a robust location network and eventually replace our sole-reliance on GPS. In an ideal system, the XYO Cryptoeconomic Reserve would never need to be tapped; however because the XYO Network relies on location-verifying hardware providers across multiple acting components, cryptoeconomic incentives may need to be rewarded to certain crypto-location mining components that would otherwise not feel incentivized to do so if only paid by the XYO Gas provided by the blockchain smart contract developers that wish to use the location data provided by the acting component. To achieve this, the Cryptoeconomic Reserve can be tapped to provide cryptoeconomic subsidies to the actors in the XYO Network, though, ideally the Cryptoeconomic Reserve would never need to be tapped.
The Cryptoeconomic Reserve may be tapped to incentivize the following network actors:
Proceeds from the XYO Token Sale will be allocated in what we deem the best way to achieve our primary vision: displacing centralized GPS. We believe the appropriate mix to make this happen is devoting our resources (which includes our funds, as well as the XYO Network ecosystem's focus) on the following areas: