Introducing the pro rata token distribution model
Bitfinex Token Sales Inc. (BTS) offers plug and play technology solutions to simplify the token sale process. BTS is excited to introduce a new token distribution model that can help projects to cater to the high demand for tokens offered during a sale and ensure wider distribution.
In the past, token sales conducted using the BTS technology used the first come, first served token distribution model and were completed within seconds after launch due to the high demand. As a result, thousands of verified users were unable to successfully purchase tokens. Feedback from BTS users helped to shape the new pro rata model where every eligible user who pledges to participate in the token sale will receive an allocation.
The Pro rata distribution model
Projects conducting a token sale using BTS technology can now choose to distribute tokens using the new pro rata distribution model, where each eligible users can pledge to purchase tokens during the sale and will receive a proportionate allocation based on the user’s own pledge and the total pledges by all users, if the sale is oversubscribed.
Example of a pro rata token distribution
Let us consider an example where a project ABC is conducting a token sale using the pro rata distribution model and plans to sell 100,000 ABC tokens worth $100,000, where each ABC token is priced at $1. Ash participates in the sale and pledges to purchase 10,000 ABC tokens. The remaining eligible users pledge to purchase 190,000 ABC tokens. Then,
Tokens Available in the Token Sale = 100,000 ABC.
Total Pledged = 200,000 ABC.
Tokens purchased by Ash = 5,000 ABC.
As the sale is oversubscribed by 100%, each user will only be able to purchase 50% of their original pledged amount. Thus, Ash will receive 5,000 ABC tokens and $5,000 (the difference between the pledged amount and the purchased amount) will be released to Ash.
The inaugural sale with pro rata distribution
We are delighted to announce that Elrond Ltd. will be conducting the first Catalyst sale using the new pro rata distribution model. Elrond Ltd. aims to bring accessibility to the digital economy by improving key factors of the blockchain user experience including speed, scale and cost.
The Elrond Catalyst sale opens at 10:00AM UTC on 23rd September, 2020. When the sale opens, a limited quantity of eGold tokens (ELGD) will be sold at the spot price, with successful contributors receiving an additional EGLD bonus of 25%. The bonus tokens will be distributed in four equal tranches on the 28th September, 3rd October, 8th October and 13th October 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, visit https://bit.ly/ElrondCatalystSale.
This blog post is not an offer to sell or the solicitation of an offer to buy any tokens. Any sales would be made only through definitive 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 the solicitation of an offer to buy any eGold tokens (EGLD). Any sales of EGLD tokens would be made only 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 in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or in any jurisdiction which would require licensure or other registration of the Bitfinex Token Sales platform. Further, sales will not be made to persons or entities of the British Virgin Islands, Canada, the United States, or Switzerland or in jurisdictions or to persons prohibited under applicable law or sanction regime.
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