Introduction of the prorated token distribution model
Bitfinex Token Sales Inc. (BTS) provides plug-and-play technology solutions to simplify the token sale process. BTS is pleased to introduce a new token distribution model that can help projects meet the high demand for tokens offered during a sale and ensure wider distribution.
In the past, token sales conducted using BTS technology used the first come, first served token distribution model and were completed within seconds of launch due to high demand. As a result, thousands of verified users were unable to purchase tokens. Feedback from BTS users has helped shape the new prorated model, with each eligible user who pledges to participate in the token sale gets an assignment.
The proportional distribution model
Projects conducting a token sale using BTS technology can now choose to distribute tokens using the new prorated distribution model, where each eligible user can promise to purchase tokens during the sale and a proportional Assignment will be received based on the user’s own pledge and the aggregate pledges by all users, if the sale is oversubscribed.
Example of a prorated token distribution
Let’s take a look at an example where a project ABC performs a token sale using the prorated distribution model and plans to sell 100,000 ABC tokens worth $ 100,000, with each ABC token costing $ 1. Ash participates in the sale and promises to buy 10,000 ABC tokens. The remaining eligible users pledge to purchase 190,000 ABC tokens. Than,
Tokens available in the token sale = 100,000 ABC.
Total committed = 200,000 ABC.
Tokens bought by Ash = 5,000 ABC.
Since sales are 100% oversubscribed, each user can only buy 50% of the amount originally committed. So Ash receives 5,000 ABC tokens and $ 5,000 (the difference between the amount pledged and the amount purchased) is released to Ash.
The inaugural sale with pro rata distribution
We are pleased to announce that Elrond Ltd. will conduct the first Catalyst sale using the new prorated distribution model. Elrond Ltd. aims to make the digital economy more accessible by enhancing key factors of the blockchain user experience, including speed, scale and cost.
The Elrond Catalyst sale will begin on September 23, 2020 at 10:00 AM UTC. When the sale begins, a limited amount of eGold tokens (ELGD) will be sold at the bargain price, with successful contributors receiving an additional 25% EGLD bonus. The bonus chips are divided into four equal installments on September 28, October 3, October 8 and October 13, 2020.
For step-by-step instructions on how to participate in the sale, visit https://tokensales.bitfinex.com/help/purchase
To learn more about the Elrond Catalyst sale and to register to purchase EGLD tokens, please visit https://bit.ly/ElrondCatalystSale.
This blog post is not an offer to sell or a solicitation of an offer to buy tokens. Any sales would only be made through final agreements and subject to the Token Sale Terms of Service for the Bitfinex Token Sales platform. In particular, this blog post is not an offer to sell or a solicitation of an offer to buy eGold tokens (EGLD). Any sale of EGLD tokens would only be done through the “Elrond Catalyst Sale Token Purchaser Agreement “ with Elrond Ltd. and subject to the Token Sale Terms of Service for the Bitfinex Token Sales platform.
Offers and sales of tokens through the Bitfinex Token Sales platform will not be made in any jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction or in any jurisdiction requiring licensing . or other registration of the Bitfinex Token Sales platform. Further, no sale will be made to any person or entity of the British Virgin Islands, Canada, the United States or Switzerland or in any jurisdiction or to any person prohibited by applicable law or sanctions regime.
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