An explanation of the lock-up program
Main Article
“ACT LOCK-UP AND PLATFORM PROJECTS TOKEN DISTRIBUTION PLAN” @AchainOfficial https://medium.com/@AchainOfficial/act-lock-up-and-platform-projects-token-distribution-plan-b59a9554687a
We asked the community to vote for a distribution method for future airdrops/rewards. The elected alternative was the distribution of tokens based on two factors: 1) the amount of ACT held in a wallet and 2) the amount of time that tokens have been held in the wallet, which encourages and rewards long-term tenure.
Solution & participation
The planned "lock-up" program (also be called the Achain Long-term Loyalty Program), which has not yet begun, is our proposed solution. When the lock-up program launches, those who wish to participate will be asked to register their address in the program. You do this by sending 1 ACT to an address that will be announced in good time. (Note: This 1 ACT will eventually be returned.) We require 1 ACT from every participant because we use the sender address for registrations. This amount is small enough to not be an inconvenience, yet large enough to make spam attacks infeasible. You only need to do this once per address.
How it works
Participating in the program does not prevent you from moving or selling your ACT; it simply pays off not to do so. When a reward is planned, several snapshots taken at regular intervals. In the example below, an IMAGINARY token called xCoin is being distributed to the community, and 5 snapshots are taken.
Number of tokens to be distributed: 1,000,000 xCoins.
In the 5 snapshots, your wallet contains 100 ACT, 50 ACT, 150 ACT, 150 ACT and 200 ACT respectively.
- Your average is calculated to be (100+50+150+150+200)/5 = 130.
- The total score of all participants = 10,000 ACT.
- Your share: 130/10000 = 0.013 = 1.3%
- Your reward: 0.013*1,000,000 = 13,000 xCoins.
Requirements
- You must enroll in the program by sending 1 ACT (registrations are not open yet; we'll let you know when).
- You must use a private wallet (meaning you have access to the private key); these currently include the desktop wallet (Windows or Mac), the web wallet and Kcash.
- You can still enroll in the program even if you missed one or more snapshots, but the missed snapshots will be counted as a balance of 0, lowering your average.
Why?
Firstly, this approach requires that you show your interest in receiving the reward by manually participating in the program. This means fewer recipients; tokens will not be wasted on exchanges that do not plan on supporting the airdrop, for example, and that means a bigger reward for the community. Secondly, it encourages long-term holding and keeping funds off the exchanges. Thirdly, it lessens the impact made by traders who buy solely for the airdrop with the intention of selling immediately after.
Thank you for all your feedback and confidence.
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