How to create an ecosystem where all users benefit?

While solving the problem of interoperability between blockchain assets, we have also focused on creating an ecosystem where all users benefit. But how is this achieved?

Firstly, AliceFi protocol should make profit by itself. AliceFi’s profit comes from the difference between the interest rate on loans and that on the savings. For more information, please refer to How does AliceFi’s lending work?

The second condition is the profit must be distributed fairly. If some actors change the way it is paid so that the economic system operates for their advantage, other participants would leave the system. It would be hard to say that anyone can benefit from such a system.

Therefore, we need a system that doesn’t have any centralized entity, which gives opportunity to everyone fairly and that engages more people over time. The most effective way to design it is to have your own economy.

We will do an Initial Free Offering (IFO), which offers 70% of the total supply of ALICE tokens for free.

So we decided to issue ALICE tokens. What’s important is, we didn’t issue tokens to raise funds from public like most projects! Rather, we will do an Initial Free Offering (IFO), which offers 70% of the total supply of ALICE tokens for free. Over the long term, we expect ALICE tokens to be delivered to a large number of users so that they organically become customers of the AliceFi protocol.

What’s an IFO (Initial Free Offering)?

To date, most blockchain projects have issued tokens for quick, easy and huge fundraising from the public.

But as a result, countless scam projects have appeared, inflicting major losses for investors, who were forced to watch prices drop after purchasing at a high price. Of course, there may be individuals who have made money through token investments, but far more people have not. This is a serious problem caused by public token sales, which is primarily due to the large gap between the information held by the selling and buying sides.

So, we do not plan to sell ALICE tokens to the public. Instead, we plan to raise funds by selling 10% tokens to institutional investors. If all are sold, this will raise approximately $2 million, which would support us for developing AliceFi protocol and mainnet for the next two years.

The terms ‘IPO’, ‘ICO’ and ‘IEO’ are widely known, but an IFO is quite new. Because it’s not trendy. An IFO is literally a way to offer tokens to users for free, not at a price. The motivation is to allow more users to access the AliceFi protocol. The most important customer for us is users, not token investors!

How and when to participate 📅

ALICE tokens are provided free of charge, but not all of them will be released at once. If that happens, the value of ALICE tokens in the market will drop to zero, so there is no merit to hold tokens. Instead, over time, offerings will be made to participants who contributed to the AliceFi protocol. The IFO of ALICE tokens begins at 00:00:00 (UTC) on August 15, 2019.

How to participate

You start by depositing DAI savings on the AliceFi protocol After 24 hours, you will receive the same number of ALICE as the DAIs saved. If you saved 10,000 DAI then 24 hours later you will receive 10,000 ALICE as a reward. And 24 hours after you get ALICEs, you can get them again. This process can be repeated indefinitely. However, ALICE offers have halvings. The first halving occurs when the amount of ALICE equivalent to 8,750,000,000 DAI have been offered. In other words, initially 1 ALICE is offered for 1 DAI, but after 8,750,000,000 ALICE have been offered, only 0.5 ALICE for 1 DAI will be offered. Then after 4,375,000,000 ALICE, only 0.25 ALICE starts to be offered. This process is repeated 60 times, after which no more ALICE will be offered. The total number of ALICE paid to participants by the halving of 60 times is 17,500,000,000. And no additional ALICE tokens will be issued.

To sum up, you can receive ALICE without any restrictions except the amount and date of your deposit of DAI. Most users will mainly use the AliceFi app, so if you press the ‘Reward’ button within the app once every 24 hours, you will continue to receive ALICE tokens! (Android, iOS)

When to participate

The IFO of ALICE tokens begins at 00:00 UTC on August 15, 2019. After installing the app, you need to create your private key and set a password. Therefore, if you want to participate, we recommend that you download the app in advance.

When does it end? No end date is specified. If all ALICE tokens are offered after the 60 halvings described above, the IFO also terminates. We can’t predict the end date, because if many people deposit a large amount of DAI, the IFO can be terminated quickly. Otherwise, it will be paid out over a relatively long time.