LNP21 Token Sale

Purpose

The purpose of this page is to explain the basic structure of the upcoming LNP21 Token Sale.

The utility concept of the token is currently in stealth. The pre-sale and/or public sale of tokens will only be open when there is an existing utility, whereby the buyers can actively use the tokens in a blockchain application ecosystem.

Structure of Token Sale

The structure of the token sale is a multiple stage, monthly, flash, fixed price, capped, Reverse Dutch Auction.

This means the following: 1) token sale will consist of multiple sale stages; 2) each token sale stage will take place on a regular monthly interval; 3) token sale will not be open for the entire month, but only for a short period of time within; 4) offered token price will be fixed on each token sale; 5) total token supply will be capped; 6) circulating token supply will be released on a non-fixed and accelerated rate.

Below is the table highlighting the key features of the token sale:

Key Features of the Token Sale
Number of Sale Stages	Multiple	24
Sale Intervals	Periodic	1 Month
Sale Stage Time Period	Flash Sale	1 Week
Offered Price	Fixed Price	1 EUR
Total Token Supply Cap	Capped	EUR 24 Million
Circulating Token Supply Release	Incremental Increase	Variable

Below is the table detailing the specific terms of each sale stage:

Month	Private (Pre-Sale) /Public	Discount Rate*	Supply	Token #	Payment21 Lockup Period (months)	Token Buyer Lockup Period (months)
1	Private	50%	5.0000%	500,000	24	1
2	Public	25%	30.0000%	3,000,000	23	2
3	Public	0%	60.0000%	6,000,000	22	3
4	Public	0%	85.0000%	8,500,000	21	4
5	Public	0%	85.7500%	8,575,000	20	5
6	Public	0%	86.5000%	8,650,000	19	6
7	Public	0%	87.2500%	8,725,000	18	7
8	Public	0%	88.0000%	8,800,000	17	8
9	Public	0%	88.7500%	8,875,000	16	9
10	Public	0%	89.5000%	8,950,000	15	10
11	Public	0%	90.2500%	9,025,000	14	11
12	Public	0%	91.0000%	9,100,000	13	12
13	Public	0%	91.7500%	9,175,000	12	13
14	Public	0%	92.5000%	9,250,000	11	14
15	Public	0%	93.2500%	9,325,000	10	15
16	Public	0%	94.0000%	9,400,000	9	16
17	Public	0%	94.7500%	9,475,000	8	17
18	Public	0%	95.5000%	9,550,000	7	18
19	Public	0%	96.2500%	9,625,000	6	19
20	Public	0%	97.0000%	9,700,000	5	20
21	Public	0%	97.7500%	9,775,000	4	21
22	Public	0%	98.5000%	9,850,000	3	22
23	Public	0%	99.2500%	9,925,000	2	23
24	Public	0%	100.0000%	10,000,000	1	24

*Volume discount

This token sale structure has been selected from the observation of token sales of other ICO projects in an attempt to alleviate the wrong and accentuate the good. In fact, this sale structure is necessary to address the single most difficult aspect of ICO token sales which is that individuals have a highly variable valuation of the token from the lack of an agreed upon valuation method.

Rule-Based Monetary Policy

Payment21 will implement a series of policies to create a blockchain ecosystem resembling a Rule-Based Monetary Policy. These are of the following:

Lockup Period
Forward Notice of Sale
Natural Rate of Release

Lockup Period

Payment21 and the buyer of tokens will be subject to a lockup period which will restrict any form of secondary trading. However, tokens will be available to use on the blockchain ecosystem. Payment21 will be subject to a decreasing lockup period while buyers will be subject to an increasing lockup period.

Forward Notice of Sale

Payment21 will notice the public of its secondary sale of tokens in treasury.

Natural Rate of Release

Payment21 intends to use its treasury of unsold tokens to be released in the form of incentives to boost utility within the blockchain application.