How our ICO works:
We intend to run a sale that is as inclusive as possible, meaning future Holo hosts and users will not be pushed out by a few people buying all available credits within minutes. We also intend to act responsibly by having a meaningful cap on the amount of credits we allow ourselves to sell, instead of just raising as much as possible.
- This strategy is designed to establish a Holo user base through multiple avenues, raise the money needed to ship HoloPorts (devices that make participation easy), and ensure the resources necessary to support demonstrated demand for the network.
- Shortly after the launch of the Crowdfund. Holo will offer a pre-sale of cloud-hosting services in the form of transferable ERC20 tokens on the Ethereum public blockchain. When the Holo network goes live, these tokens can be exchanged for the corresponding credit balance on the Holo network and destroyed upon exchange. The supply of tokens is set in relation to demand demonstrated by purchases from the crowdfund and of non-transferrable Holo fuel.
- The initial token sale will open with a €2.5M supply that adjusts daily according to an equation that translates the amount of demonstrated demand into a corresponding increase of ERC20 tokens.
- We limit access to the ICO to be in compliance with legal regulations.
ERC20 Token Distribution
Participants in the transferable ERC20 token sale will pay in Ether and have access to their tokens within a week of the close of the ICO, independent of Holo launch timelines.
If we raise less than €1m we will return the ETH to all participants and will fulfill the project through other funding strategies. 25% of the tokens are reserved for the organization, including founders, team, and prior investors. We will mint 3.3m tokens on day one, in order to make 2.5m available for sale.
The fact the people will buy a token to speculate with does not mean there is a demand for the product or service. We are leveraging our crowdfunding campaign to indicate demand for our product and to confidently estimate the size of our initial community of developers, hosts, and users. New tokens are released by an algorithm connecting disbursement to demand projections, which are based on the sale of boxes, events, and developer tools.
- Each day’s sales of hosting boxes and developer events expand the supply of tokens according to a fixed formula. Nevertheless, the token supply is not determined in advance. Once per day, the newly released amount of credits will be written to the blockchain enabling further credit/token sales.
- It’s possible that demand for tokens will exceed the amount released on any given day. The only way to increase the day’s supply of tokens is to purchase network capacity directly from the crowdfunding campaign.
- We don’t allow any single wallet to buy more than 10% of the daily credit supply.
- We will log the amount of available credits and sold credits for each day of the sale period and make these statistics visible on our credit sale webpage.