Update: Monday, December 11th 2017
Having discussed community feedback, we have settled on the decision to implement a pre-ICO lock. Today we discussed the possibility of creating a new smart contract that would be a simplified version of the Wabi ICO example. Our dev team is examining the details this week to make sure all specifications are thought out thoroughly before implementation. Thus, we have extended the task for another two days to allow for further feedback.
Task from Friday, December 8th 2017
It’s great to see the amazing engagement and support in helping us formulate our ICO structure to develop the best solution for both pre-ICO and ICO investors. Keep in mind that this is a draft in order to get feedback - we are not taking any of these actions yet. Following your feedback, and further internal discussion, we will announce the decision next week.
Our CEO and the rest of the team have heard from pre-ICO holders. We have received their assurance that they want to hold the YUPIE token long-term. They have have supported us early because they believed in the project and not because of speculative return.
Current and potential ICO investors are interested if there is a lock up period for pre-ICO token investors.
We met several times during this week to find the best possible strategy and we wanted to first present the main reasons for coming up with the following scenario.
Reasons for this change:
Encourage new investments in the YUPIE ICO.
Our bonus structure rewarded investments in the first few days of the ICO, however that was a ‘’dead’’ period. The bonuses were not utilized to its fullest potential, therefore we want to ensure that more people have the possibility to back our project and receive a bonus for supporting the Crowdholding ecosystem.
Ensure pre-ICO backers do not lose out.
We want current and potential ICO backers to feel safe about their investment, but we also need to ensure that pre-ICO investors are appreciated for the risk they have taken by supporting the Crowdholding project early.
No lock-up period coded.
There is the possibility to code a lock-up period in the Smart Contract, however at the time of our smart contract creation we have not considered the possibility of a potential bonus sell off. We believed that because we have clearly shown in the Whitepaper that the value of YUPIE grows over time together with the businesses rather than created on the exchanges. In short, the pre-ICO lock-up period has not been coded in the Smart Contract and cannot be added.
Lower goal, means less tokens in circulation.
The amount of tokens to be held by pre-ICO users would be high compared to the total pool of total tokens on the market. We want to ensure the success of the YUPIE token and not favor particular backers, this resulting in long-term benefit for all investors.
At the time of pre-ICO launch, the Ether price was $290 USD.
Since then, the price has increased by 55% at is currently at around $450 USD. This has made investments in the YUPIE ICO more expensive for investors. Initially we wanted the YUPIE token to be priced around $0.30 USD during ICO, but the increase of ETH price has changed the investment environment and has made contributions to the YUPIE ICO more expensive for investors.
Proposed Solution (This is only a proposal and is subject to change):
We are considering the following scenarios to improve the current situation:
Scenario #1: No Change
The current issue with not making any changes is the pre-ICO token holders would own a large stake of all tokens (20% of issued tokens).
Scenario #2: The Extra Bonus
All current and future ICO (not-pre ICO) investors will get a 100% bonus. Therefore, everyone who invested between 1st of November and the end of the ICO ($1million goal) would receive 100% bonus on their investments. The 100% will be transferred manually to all token purchasers before the end of ICO.
Scenario #3: Extra Bonus & Bonus Emission
All current and future ICO (not-pre ICO) investors will get a 100% bonus. After getting listed on the exchange, we will have monthly bonus emissions of YUPIE tokens (20% of the unburned tokens from ICO) that get distributed between all YUPIE pre-ICO & ICO investors. The dilution of the 20% of tokens will last 6 months and may have one of the following structures:
To encourage holding the YUPIE token, every YUPIE holder will get additional tokens each month based on the amount of YUPIE tokens they own.
Give us your feedback and feel free to suggest possible improvements or changes. If you agree or disagree with the proposal please comment telling us why. May the crowd be with you!