Dear Community,
At long last, we are pleased to release the details of our initial utility token offering! In this article, we detail the general information and structure, and provide our reasoning behind the structure.
General Information
Date of Token Sale: August 1, 2019, starting at 8 am EST.
Total Limit: $300,000
KYC: Full KYC (KYC process will be described in detail in a separate article)
Token Type: 50% ERC-20 and 50% BEP-2, with token bridge in place
Unlocking Schedule: 40% at TGE; 40% 30 days after TGE; 20% 60 days after TGE
Sale Partner: Prima Block, one of the most trusted names in token sales (no account required)
Structure: 3 Tiers —Tier I(High-Value Supporters); Tier II (Whitelisters); Tier III (Gas War Lite)
Structure Details
a. Tier I: Highest Value Supporters
Personal Limit: $1,000
Total Tier Amount: $32,000
Qualifications/Restrictions: reserved for the highest value supporters who added significant and demonstrable value in the past and will assist into the future. In addition, high-value supporters will help beta test the UniFyre Wallet. All Tier I purchasers must complete KYC and be pre-approved. Tier I participants cannot participate in Tier II, but are eligible for Tier III.
Timing/Structure: 8:00 AM EST — 8:15 AM EST. Any unsold portion will be allocated to Tier III.
b. Tier II: Whitelisters
Personal Limit: $400
Total Tier Amount: $180,000
Qualifications/Restrictions: must have submitted whitelist application within the prescribed time period and been approved. All Tier II participants must undergo KYC and be pre-approved. Tier II cannot participate in Tier I, but are eligible for Tier III
Timing/Structure: 8:15 AM EST — 8:45 AM, first come, first serve among whitelisters. Any unsold portion will be allocated to Tier III.
c. Tier III: Gas War Lite
Personal Limit: $10,000
Total Tier Amount: Approximately $90,000 plus anything remaining from previous rounds.
Qualifications/Restrictions: Must undergo KYC and be pre-approved to participate. Anyone who passed KYC can participate in Tier III.
Timing/Structure: 8:45 AM EST — until sold out. First come, first serve, gas war lite.
Reasoning Behind The Structure
At this point many are probably wondering, why the tiers, vesting schedule, BEP-2 tokens, and gas war, among many other questions. We would like to take the time to address those questions here.
The 3 Tier Structure
In essence, we wanted to balance the interests of the various parties and give everyone an opportunity to participate. This meant balancing the interests of the high-value supporters, the whitelisters, and supporters of Ferrum who are not in the whitelist.
We believe that offering a reasonable allocation to everyone in those tiers on a first come, first serve basis is the fairest way to structure our ICO. By allocating $180,000 to the whitelist round, we are showing our commitment to our early supporters, while still giving others the opportunity to participate in the Gas War Lite. We are also giving special recognition to the highest value supporters who helped get us here and will continue to add value in the future.
Remember: for those who cannot participate, we have a primary exchange listing lined up for just a few days following the ICO…
The 40–40–20 Vesting Schedule
At Ferrum, we seek to be fair and transparent in all areas. Therefore, when it came to the vesting schedule, we felt it was important that everyone be equal.
The only differences between the rounds is the seed investor’s first unlock happens 30 days after TGE, and the earlier one purchased the token, the larger bonus one received to reflect the time value of money and early interest in the project.
We stand by the fairness of the vesting and bonus structure because our earlier purchasers had to wait a significant period of time before their tokens became liquid, whereas public sale tokens will be liquid within one week from TGE. The early purchasers made a risky decision to participate before any real traction, and they should be rewarded for it.
Info on All Rounds
Seed Round:
Amount Raised: $120,000 (40% Bonus)
Token Price: $0.0114 (with bonus factored in)
Token Distribution: 40% unlocked after 30 days from TGE; 40% after 60 days from TGE; 20% after 90 days from TGE
Private Sale I:
Amount Raised: $500,000 (15% Bonus)
Token Price: $0.0139 (with bonus factored in)
Token Distribution: 40% at TGE; 40% after 30 days from TGE; 20% after 60 days from TGE
Private Sale II:
Amount: $200,000 (0% Bonus)
Token Price: $0.016
Token Distribution: 40% at TGE; 40% after 30 days from TGE; 20% after 60 days from TGE
Public Sale:
Public Sale: $300,000 (0% bonus)
Token Price: $0.016
Token Distribution: 40% at TGE; 40% after 30 days from TGE; 20% after 60 days from TGE
BEP-2 Tokens
Next, why did we decide to issue 50% of the public sale tokens on Binance Chain? As noted in our Binance Chain article, this allows us to achieve three critical goals: 1) we can apply for Binance DEX at TGE and to achieve listing approximately 30 days post primary listing; 2) we can integrate BNB and other BEP-2 tokens into our network and products; 3) we lay the ground work for a Binance CEX listing.
By issuing a small portion of BEP-2 tokens with the ability to convert to ERC-20 through a token bridge, we are able to secure the above benefits, plus the marketing boost associated with Binance. Considering the medium and long term benefits, we believe this decision to be in the best interests of all stakeholders.
Token Bridge
BEP-2 tokens will be convertible to ERC-20 through a token bridge. For the first 30 days after distribution, there will be a 50% fee for converting BEP-2 to ERC-20, decreasing by 1.5% per day until the fee is eliminated.
In addition, by applying to Binance DEX early at the time of TGE, we increase the likelihood of secondary listing around 30 days later. This means that no matter what, the BEP-2 tokens will be fully liquid with no fee approximately 30 days after TGE.
Gas War Lite
As mentioned above, balancing the interests of various stakeholders was paramount. While whitelisters are very important to us, we also know that many of our best supporters joined recently and did not get a chance to sign up for the whitelist. The Gas War Lite was a way to give everyone the opportunity to invest, assuming they are willing to pay the gas fee.
Why Gas War “Lite” and not an old school gas war? An uncapped gas war might be very exciting, but would unnecessarily increase the risk that a few whales would buy up the whole allocation. A $10,000 personal limit felt like the right balance between a fun gas war, and reducing the risk of just a few participants buying the entire allocation.
Conclusion
In sum, we have done our best to balance the interests of all stakeholders, and we hope you see the value in our approach. We are anticipating many questions, so please do not hesitate to ask us anything in our Telegram group.
Also, we will be holding a Community Q&A on July 26th, 2019 at 11am EST in our Telegram group to answer all your questions.
What’s Next — BIGGER News Incoming
Finally, even more BIG news to follow soon…stay tuned!
Very truly yours,
The Ferrum Network Team
Links:
Website: https://ferrum.network/
Telegram: http://telegram.ferrum.network
Twitter: http://twitter.ferrum.network
LinkedIn: http://linkedin.ferrum.network
YouTube: http://youtube.ferrum.network
Reddit: http://reddit.ferrum.network
Bitcoin Talk: http://bitcointalk.ferrum.network
Facebook: http://facebook.ferrum.network
Github: https://github.com/ferrumnet/
Instagram: http://instagram.ferrum.network