You may have read our previous article, mentioning that unsold tokens would be distributed to token sale participants. We’ve had a lot of feedback from the community and some very valid points were raised. The main issue is “what if there are a lot of unsold tokens, won’t giving that many away harm the token value?”.
The answer to that is “yes”. It’s a potential problem. Whilst we have now reached softcap and are confident in getting close to hardcap, this issue needs to be resolved sooner rather than later.
From our discussions with the community including token sale participants, most people tend to favour burning of unsold tokens rather than giving them away. Burning reduces supply and circulation which helps all token holders. Giving too many away creates some liabilities around when the recipient decides to sell (dump) their free tokens. This could negatively impact the token value.
In hindsight we should have opted for at least a partial burn. So we are adjusting the scenario as follows:
25% of unsold tokens will still go to the DistX lottery (we can’t change that, it’s locked in and automated).
For the other 75% of unsold tokens, 10% will be given proportionally to token sale participants, and the other 90% will be burned by the team.
Proportionally means the % of all sold tokens you purchased, is your % share of the 10% unsold token pool. The tokens given to token sale participants will be over 12 months, in equal instalments. This is designed to reduce dumping of free tokens even further.
This decision is best for token holders and token value, there’s no doubt. The team do not benefit at all, we will not receive any bonus unsold tokens. We are doing our best to make every single token valuable.
The lottery numbers are very generous, and to be honest potentially too generous, but they are locked in. You must have 1,000 DISTX in your wallet to be in the draw.
We believe we will get close to hardcap so none of the above would really matter.
We hope this helps to clear things up.
Thanks to everyone who has participated thus far — it has been a great success. We have more YouTube videos booked in over the coming days, so things are about to heat up even more!
Daniel & Rob