Outline of the contribution phases over the next few weeks

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EDIT — Please read updates with final dates and final details of OriginTrail token sale.

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We are happy to announce more details of OriginTrail’s upcoming token sale — distribution of tokens, the timing of the token sale and the corresponding discounts. OriginTrail Decentralized Network will be fueled by Trace utility tokens (TRAC). The entire token supply will be minted at initial distribution and will serve as an incentive for nodes to perform operations and store data on the network.

Key terms of the token sale:

Total token supply: 500,000,000 Traces

Minimum contribution target (soft cap): $5 million USD

Development target: $10 million

Total target (hard cap): $22.5 million

ICO price of token: 1 Trace = $0.10

Trace token ticker: TRAC

Currency accepted: ETH

Distribution of Tokens

Presale and crowdsale — 50%

Half of the entire token supply will be offered to the community throughout the TGE. Any tokens remaining unsold will be distributed among preICO, presale and crowdsale contributors in proportion to their ownership of sold tokens. This event would effectively dilute team and advisors, providing additional motivation to both groups to close the hard cap.

Future development — 20%

The TGE entity will withhold 20% of the token supply for further development beyond 2020. Proposal for further development will be shared with the community in a timely fashion and voted upon by token holders.

Liquidity pool — 5%

Because Trace is a utility token, we need to make sure that there will be enough supply of it for potential users to obtain it at all times. To bridge the initial phases of potentially low supply, TGE entity will be able to provide liquidity using this pool.

Founders and preICO contributors — 18%

Token pool for founders and early supporters of the project. Both of the groups have their tokens subject to a vesting schedule. Founders’ vesting schedule, together with the team, is over 2 years, receiving 12,5% of their tokens every 3 months. PreICO contributors are vested over 6 months wherein they receive 20% with the TGE initial distribution, 40% after 3 months and 40% after 6 months from initial distribution.

Team and Advisors — 5%

Current and future team members together with Advisors will be awarded from this pool. Team members vested with 12,5% of their tokens every 3 months after the TGE initial distribution. Advisor tokens will vest over 6 months wherein they receive 20% of Trace with the TGE initial distribution, 40% after 3 months and 40% after 6 months from initial distribution.

Bounties — 2%

Bounties will be paid out for different tasks that will have to be carried out throughout the TGE process (e.g. translations, marketing activities, promotions…).

Contribution phases

OriginTrail token sale process is divided into 3 phases: whitelisting, presale and crowdsale. Whitelisting will start on the 14th of November, presale will start on the 1st of December and the crowdsale will follow in Q1 2018.

Whitelisting

Whitelisting is the process of confirming your ETH wallet address to be able to take part in presale and crowdsale contribution phases. Why is it important?

It will save you a spot when the contribution opens since it will follow first-in first-served basis. The same whitelisting process will be used for both contribution phases, presale and crowdsale. It will be a method for the necessary Know-Your-Customer (KYC) practices to conform with all the legal requirements.

Through the login received at whitelisting, you will also get access to the address to which contributions should be made. We will not be communicating contribution addresses through any other channels so please take care and double-check if the website uses a secure connection.

Presale

Presale process will start on the 1st of December and will be run through a smart contract, accepting ETH as the only currency. The maximum running time of the presale will be 3 weeks with decreasing discounts after each week as described below. Minimum contribution in the presale is 50 ETH. The ETH:Trace price will be fixed throughout the presale phase and will be determined in the days before opening the presale. Maximum total contributions in the presale phase are limited to $10MM.

Week 1: 20% discount

The contribution period will begin on December 1st at 12:00 CET (block number TBD). Contributors will be sent invitation e-mails to enter their contributions. Contributions will be following first-in-first-served basis.

Week 2: 15% discount

The contribution period begins 1 week after the previous one, starting December 8th at 12:00 (block number TBD).

Week 3: 10% discount

The contribution period begins 1 week after the previous one, starting December 15th at 12:00 and finishes on December 22nd at 12:00 (block number TBD).

Crowdsale

Crowdsale will take place in Q1 2018 with exact dates being communicated in January 2018. We are keeping the dates undisclosed for now as we want to show some more tangible results by next year, building even more credibility with the community and ensure the desired dispersion of the token. Minimum contribution threshold will as well be significantly lower to allow the wider distribution. Since TRAC price has been set in USD, ETH:TRAC price will be recalculated before the crowdsale contribution phase to represent 0,1 USD = 1 TRAC. Once set, the ETH:TRAC will be fixed throughout the crowdsale.

Re-distributing leftover tokens

In the scenario where the hard cap is reached during crowdsale with additional tokens still available (due to discounts in the presale), any left-over tokens after the hard cap will be distributed among preICO, presale and crowdsale contributors in proportion to their ownership of sold tokens.

Security

Both contribution phases, presale and crowdsale, will be managed by a smart contract with minimum contribution target set as a threshold for issuing the token. All smart contracts will be audited by a 3rd party with the audit presented before the contribution period starts.

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