The Crowdsale Model

One of the main goals of our Rocket Pool crowdsale is to aim for a great distribution of the token. Far too often a crowdsale will get sold out very quickly, these token sale models are usually a variant of the ‘first come, first served’ model where those users who get the most tokens are users that include a very high gas amount with their transaction, ensuring miners process their transaction first and in turn, they get into the sale first and claim the most tokens. Of course this is great for reaching the crowdsale funding goal quickly, but will often leave a lot of people disappointed and also make the overall distribution of the token quite limited.

The Rocket Pool crowdsale aims to allow anyone to get tokens at any time during the sale. This is accomplished using a proportional distribution model which means no matter the amount you’re contributing into the crowdsale, you will get some tokens, even if you do it on the last day of the sale.

Everyone gets their piece of the pie!

How does it work?

It’s a remarkably simple approach that happens in two basic steps. All users who participate will, a) contributing ether into the contract and b) collect their tokens/refund when the crowdsale completes.

The crowdsale will have one primary ether target that will determine if the sale is successful. If this target is surpassed when the crowdsale is running, then the sale is considered a success. If not, all participants can withdraw their contribution in full when the sale period ends.

By now you might be wondering how many tokens you’ll get if you participate. This is determined by the total amount of ether contributed to the contract vs the amount sent in by the user. Here’s an example scenario to show how the tokens are divided up proportionally among participants.

The example ether target for the contract to be a success is 100 .

. The example token amount assigned to the crowdsale is 1 million .

. Betty decides to participate in the crowdsale by contributing 10 ether.

ether. The crowdsale runs for a month and receives a total of 200 ether making it a success. The crowdsale now has 100 excess ether above its target.

ether making it a success. The crowdsale now has 100 excess ether above its target. Betty’s contribution now makes up 5% of all the ether contributed.

of all the ether contributed. Betty’s contribution now gets her 5% of all tokens assigned to the sale which is 50,000 tokens (5% of 1 million).

tokens (5% of 1 million). Betty’s contribution also gets her a 5% refund of the excess ether the contract received, which is 5 ether (5% of 100 ether excess the contract received during the sale).

As you can see the tokens are distributed proportionally based on the weight of your contribution vs the total contributions from all other participants. The refund for excess ether the contract received is also distributed proportionally in the same manner.