Interactive Coin Offering

medium.com

The "interactive coin offering" is a new proposal co-authored by Vitalik that tries to rectify the tension between holding a capped sale and distributing tokens to a broad set of investors. Many token sales have struggled with the fact that many tokens can be scooped up by a handful of "whales" (wealthy individuals or funds), who can dominate the supply for a token and arbitrage the difference between limited supply and excess demand for a profit. The design of an interactive coin offering sets up a token sale in multiple rounds, whereby individuals can propose to purchase tokens at a certain price and later increase or decrease the amount they would like to purchase depending upon others' demand. After many rounds, the pricing and overall contributor base converges towards a favorable equilibrium. It's interesting to note that this process is only possible because it's powered by smart contracts! Compare this kind of programmatic process at scale to the IPO roadshows that remain industry-standard for traditional public offerings to this day...

Read more...
Linkedin

Want to receive more content like this in your inbox?