Early Contributors (Batch A): The first batch of tokens will be distributed to teams and individuals who have been active in the Cardstack community and have plans to continue to support and grow the ecosystem. This process is conducted manually and is subjected to KYC/AML (Know-Your-Customer / Anti-Money-Laundering) rules during on-boarding processes. Contributors in this batch may be offered a higher bonus reflecting the strength of potential strategic alignment.

Pre-Allocation (Batch B): The second batch of tokens is available on a first- come-first-serve* basis to members of the Cardstack community who wish to obtain an allocation of up to $50,000 USD equivalent of CARD and receive a 10% bonus. There is a minimum contribution of $1,000 USD for the pre-allocation. Interested parties will need to complete an on-boarding process operated by our pre-allocation partner, Bitcoin Suisse, prior to the start of the pre-allocation period. Approved participants will be able to contribute ether, or another cryptocurrency or fiat currency supported by the Bitcoin Suisse platform. Additional transaction fees may apply. For further details, please visit www.bitcoinsuisse.ch.

* Determined by the arrival of ETH funds for contributors that has successfully completed KYC/AML.

Community Building

To encourage the adoption of Cardstack software, architecture, and protocols, the Foundation aims to distribute the remaining tokens to the broadest network of participants possible.

Crowd Fundraiser (Batch C): The next batch of the tokens will be distributed directly through an open registration process on cardstack.com, where contributors who fulfill the KYC/AML requirements can contribute from a whitelisted Ethereum address up to an individual cap. For the first 6 hours of the crowd fundraiser period, the cap will be set at a relatively low number, ensuring that all approved contributors will have enough tokens to redeem Cardstack-based software and services.

To show our appreciation for those community members who have joined our community in its early days (on or before January 31, 2018), contributors with validated email addresses showing early participation will be granted a higher cap during these first 6 hours.

After these first 6 hours, all contribution caps will be raised.

Airdrop Awards (Batch D): Following the TGE, the Foundation will announce and conduct a series of airdrops that will further distribute tokens to potential, interested, and active participants of the Cardstack ecosystem.

Token Generation Event (2018)

The Cardstack Foundation will be generating 6,000,000,000 CARD during the Token Generation Event.

The majority of Cardstack Tokens will be distributed to end users, makers, and miners of the ecosystem. A portion of the tokens will be reserved for the Foundation and the Syndicate, which will vest on a linear schedule.

Figure: 6 Billion Cardstack Tokens generated at the TGE

60% of the generated tokens will be distributed in Year 1 through: Early contributor agreements (Batch A), pre-allocation (Batch B), crowd fundraiser (Batch C), airdrops (Batch D), Year 1 ecosystem initiatives (1/2 of Batch E), and advisors/partners allocations.

40% will be available for public contributors (Batch A, B, C).

Allocated tokens will be available for peer-to-peer usage at the conclusion of the crowd fundraiser (Batch C), which will begin no more than 60 days from the conclusion of the pre-allocation period (Batch B).

The airdrop awards (Batch D) will occur throughout the first year, with each airdrop event limited to 2% of the generated tokens. There will be a public announcement at least 30 days before each distribution event, allowing interested participants to prepare their prerequisites for the awards. Possible examples of airdrops may include:

Addresses on the Ethereum blockchain with more than a certain amount of ETH will receive an airdrop proportional to their ETH balance. The peer-transfer of airdropped tokens may require KYC/AML.

with more than a certain amount of ETH will receive an airdrop proportional to their ETH balance. The peer-transfer of airdropped tokens may require KYC/AML. Open-source projects that have cryptographically linked their GitHub repositories to an Ethereum address will receive an airdrop proportional to their GitHub statistics. The formula and analytics code will be published as an open-source module prior to this event.

that have cryptographically linked their GitHub repositories to an Ethereum address will receive an airdrop proportional to their GitHub statistics. The formula and analytics code will be published as an open-source module prior to this event. Product teams that have registered their app contracts and are actively running Cardstack software in production will receive an airdrop as a reward for early adoption.

Tokens slated for ecosystem initiatives (Batch E) can be allocated during the first two years, with half of the tokens in this batch unlocked via smart contract in Year 1 and the remaining half in Year 2. These tokens provide the Foundation with the flexibility to make early strategic partnerships, fund development and security bounty programs, and ensure token availability for large-scale enterprise or government projects.

Vesting for Reserve Tokens

There is a lockup period of at least one year for Cardstack Foundation Reserve Tokens, which then vest linearly over 5 years, whereas Cardstack Syndicate & Team Reserve Tokens vest linearly over 4 years after the 1 year lockup.

Ultimate Token Distribution (2028)

The maximum number of Cardstack Tokens ever in circulation is 10,000,000,000 CARD.

Figure: Relative source of initial allocation of the maximum number of 10 billion Cardstack Tokens

Mining Reward

To encourage participation of software makers and analytic miners early in the project’s adoption cycle, especially before a meaningful number of paying customers arrive, the Cardstack Token smart contract will mint and allocate 4,000,000,000 additional tokens over 10 years, whereafter the smart contract will automatically stake newly minted tokens in reward pools and then allocate them to makers and miners that are actively offering software and services.

During the first year, 1,000,000,000 tokens will be distributed incrementally over the course of the year. In subsequent years, the amount of distribution will be diminished, with the cumulative distribution at the end of each year capped by this formula: