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.
Additional Information on the LNP21 Token will be published at a later date.