{"id":1383,"date":"2017-09-28T03:33:11","date_gmt":"2017-09-28T03:33:11","guid":{"rendered":"http:\/\/www.talkcrypto.org\/blog\/?p=1383"},"modified":"2017-09-28T21:21:36","modified_gmt":"2017-09-28T21:21:36","slug":"how-to-run-a-second-icos-and-keep-the-supply-the-same","status":"publish","type":"post","link":"https:\/\/www.talkcrypto.org\/blog\/2017\/09\/28\/how-to-run-a-second-icos-and-keep-the-supply-the-same\/","title":{"rendered":"How to run a second ICOs and keep the supply* the same"},"content":{"rendered":"<p><a href=\"https:\/\/storj.io\/\" target=\"_blank\" rel=\"noopener\">Storj<\/a> is\u00a0developing a next-generation cloud storage solution. They ICO&#8217;d on 19 May 2017 but they actually did one prior on the 18th July 2014. This is a summary tracking the supply of the old tokens to the new tokens.<\/p>\n<h3>Executive Summary<\/h3>\n<ul>\n<li>Total initial supply 500M<\/li>\n<li>*The supply was actually reduced in the second ICO by ~75M as a sweetener.<\/li>\n<li>Current total supply: ~425M<\/li>\n<li>Distribution model? They&#8217;re working on it.<\/li>\n<\/ul>\n<h3>A closer look.<\/h3>\n<p><a href=\"https:\/\/storj.io\/CrowdsaleTerms.pdf\" target=\"_blank\" rel=\"noopener\">Here<\/a> is a link to the original &#8220;crowdsale&#8221;.<\/p>\n<p>Total Supply: 500,000,000<br \/>\nDistribution: 70% bitcoin sales, 15% for developers, 15% for the community<\/p>\n<p>They accepted bitcoins and used Counterparty to create and manage the SJCX tokens.<\/p>\n<ul>\n<li>Note that in their second ICO they did a conversion to ERC20 tokens. ie they used the Ethereum platform instead.<\/li>\n<li>Reasons for\u00a0 this change: 1)\u00a0 Bitcoin fees were too high. 2) long transaction confirmation times.<\/li>\n<li>The conversion from SJCX to STORJ was done on a 1:1 ratio.<\/li>\n<\/ul>\n<p>They ended up receiving\u00a0<a href=\"https:\/\/bitcoinmagazine.com\/articles\/storj-crowdsale-conclusion-1413322134\/\" target=\"_blank\" rel=\"noopener\">910 bitcoins<\/a> to this address <a href=\"https:\/\/blockchain.info\/address\/132aBrspLgL54cm9eQfGNFLGqXwBRQrugc\" target=\"_blank\" rel=\"noopener\">132aBrspLgL54cm9eQfGNFLGqXwBRQrugc<\/a> worth ~<a href=\"https:\/\/www.coindesk.com\/cloud-storage-startup-storj-raises-910-btc-crowdsale\/\" target=\"_blank\" rel=\"noopener\">$460,000USD<\/a>. Bitcoin back then was around $500USD!<\/p>\n<p>This meant that 910 btc x 38,500 stjx\/btc = ~35M tokens created.<\/p>\n<p>There were a lot of people on <a href=\"https:\/\/bitcointalk.org\/index.php?topic=702602.msg8440920#msg8440920\" target=\"_blank\" rel=\"noopener\">bitcointalk<\/a> wondering what would happen to the rest of the tokens. Some said that Storj would be keeping the rest hence owning <a href=\"https:\/\/bitcointalk.org\/index.php?topic=555159.msg8467399#msg8467399\" target=\"_blank\" rel=\"noopener\">~80% of the supply<\/a>! ((350-36+75)\/500). Some argued it was\u00a0<a href=\"https:\/\/www.reddit.com\/r\/storj\/comments\/4oqhkf\/a_call_for_storj_labs_to_burn_unused_coins_from\/\" target=\"_blank\" rel=\"noopener\">90%<\/a>!<\/p>\n<p>What I&#8217;m yet to figure out is how the supply increased from 35M to 41M around 8th November 2014 and why the &#8220;<a href=\"https:\/\/bitcointalk.org\/index.php?topic=702602.msg9470369#msg9470369\" target=\"_blank\" rel=\"noopener\"><em>remaining 350M million are idle at the moment<\/em><\/a>&#8220;. 350M is the max supply available for the token sale (70% of 500M). The remaining tokens for sale should be 350M-41M = 309M.<\/p>\n<p>Then before the second ICO, the SJCX tokens in circulation increased to <strong>51M<\/strong>. This can be verified from <a href=\"https:\/\/storj.io\/supply.json\" target=\"_blank\" rel=\"noopener\">this<\/a> service obtained from their <a href=\"https:\/\/storj.io\/faq.html#faq-7-2\" target=\"_blank\" rel=\"noopener\">FAQ&#8217;s<\/a> page. Again, not sure how this happened.<\/p>\n<h3>Bring on round 2<\/h3>\n<p>Storj released 2 migration plan statements.<\/p>\n<ul>\n<li><a href=\"http:\/\/blog.storj.io\/post\/159746056098\/token-migration-plan-pt1\" target=\"_blank\" rel=\"noopener noreferrer\">Token Migration Plan Pt.1<\/a><\/li>\n<li><a href=\"http:\/\/blog.storj.io\/post\/160448088948\/token-migration-plan-pt2\" target=\"_blank\" rel=\"noopener noreferrer\">Token Migration Plan Pt. 2<\/a><\/li>\n<\/ul>\n<p>The statement in part 2 tried to make this second ICO fair so as to not dilute initial investors in the first ICO. This is an interesting scenario because SJCX was already trading. It was <a href=\"https:\/\/bitcointalk.org\/index.php?topic=555159.msg18969644#msg18969644\" target=\"_blank\" rel=\"noopener\">$0.46 <\/a>on Poloniex on 11 May, 8 days before the ICO.<\/p>\n<p>The details of the second ICO can be found in the bitcointalk link <a href=\"https:\/\/bitcointalk.org\/index.php?topic=1911285.0\" target=\"_blank\" rel=\"noopener\">here<\/a> along with the <a href=\"https:\/\/storj.io\/sale-terms.pdf\" target=\"_blank\" rel=\"noopener\">Terms of Token Sales<\/a>.<\/p>\n<p>The planned raise of $30M at $0.50 meant around 60M tokens were to be created. The actual figure was 72M due to the discount offered in the presales. There is a great FAQ <a href=\"https:\/\/www.reddit.com\/r\/storj\/comments\/6djvlz\/sjcx_and_storj_a_faq\/\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n<p>Bitcoin and ether were both accepted. There&#8217;s a mini running commentary <a href=\"https:\/\/bitcointalk.org\/index.php?topic=1911285.msg19122065#msg19122065\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n<p>To make matters more confusion, Storj stated in it&#8217;s part 2 migration plan:<\/p>\n<blockquote><p>In order to incentivize our supporters to participate in the sale, we will be burning one token from the outstanding reserves for every token sold in the sale.<\/p><\/blockquote>\n<p>This resulted in 75M STORJ being burned or destroyed bring the total supply down from 500M to ~425M. <a href=\"https:\/\/etherscan.io\/tx\/0xfac1371bf41c1bde0317a3120d2f73736cab2e057298cf3feec4a3bbc81c5263\" target=\"_blank\" rel=\"noopener\">Here<\/a> is the proof of the 75M STORJ being burned.<\/p>\n<p>Note that all SJCX coins will be burned as well. ie destroyed. The way this occurs is to send these coins to an unspendable address.<\/p>\n<h3>Sales Summary<\/h3>\n<p><a href=\"http:\/\/blog.storj.io\/post\/165553434093\/token-sale-wrap-up-details\" target=\"_blank\" rel=\"noopener\">Here<\/a> is a great summary of the token distribution and it&#8217;s status.<\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-1392 aligncenter\" src=\"https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-26-at-12.59.12-PM-300x165.png\" alt=\"\" width=\"300\" height=\"165\" srcset=\"https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-26-at-12.59.12-PM-300x165.png 300w, https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-26-at-12.59.12-PM-768x422.png 768w, https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-26-at-12.59.12-PM.png 778w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>Notes:<\/p>\n<ul>\n<li>The ~75M burned reduces the supply from 500M to ~<a href=\"https:\/\/etherscan.io\/token\/Storj\" target=\"_blank\" rel=\"noopener\">425M<\/a>.<\/li>\n<li>The actual number of tokens sold in the second round ICO was 72M.<\/li>\n<li>Only 29.35M of the 51M old SJCX have been claimed to date.<\/li>\n<\/ul>\n<h3>Distribution model?<\/h3>\n<blockquote><p>The remaining supply held by Storj at the conclusion of the sale, burn, migration deadline, and not used as strategic reserve will be time-locked for no less than 6 months. During this time Storj will seek to develop a more transparent reserve management structure which may include programmatic distribution and\/or a neutral foundation to help manage and support the ongoing growth of the Storj ecosystem.<\/p><\/blockquote>\n<p>From <a href=\"http:\/\/blog.storj.io\/post\/160448088948\/token-migration-plan-pt2\" target=\"_blank\" rel=\"noopener noreferrer\">Token Migration Plan Pt. 2<\/a><\/p>\n<h3>Controversy<\/h3>\n<p>There are some questions around the price of the tokens during the presales. Especially around the <a href=\"https:\/\/www.reddit.com\/r\/storj\/comments\/71taqt\/the_secret_storj_sale_2856mm_tokens_sold_for\/\" target=\"_blank\" rel=\"noopener\">$0.30 price<\/a>. I haven&#8217;t quite figured this one out yet.<\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-1393 aligncenter\" src=\"https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-26-at-12.58.49-PM-300x111.png\" alt=\"\" width=\"300\" height=\"111\" srcset=\"https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-26-at-12.58.49-PM-300x111.png 300w, https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/Screen-Shot-2017-09-26-at-12.58.49-PM.png 738w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>$30M was raised at the various prices indicated. The only way to make the maths work is for $0.30 to be presales 1 month price. (Note: I&#8217;ve assumed the presales no lock price was $0.50).<\/p>\n<h3>Summary<\/h3>\n<p>It is not a straightforward process to try and understand what the token supply is or how it is distributed. It is made even harder if there is a second ICO and a sweetener is added to reduce the supply. At least know everyone should now know the ball park and use this as a basis for further research.<\/p>\n<h3>Further references<\/h3>\n<ul>\n<li>https:\/\/www.reddit.com\/r\/storj\/comments\/6djvlz\/sjcx_and_storj_a_faq\/*<\/li>\n<li>https:\/\/urbancrypto.com\/storj-ico-preview\/<\/li>\n<\/ul>\n<p>*<em> Storj Labs has promised to burn 1 additional SJCX for each STORJ sold during the crowdsale. <\/em>is inaccurate. It should read: &#8220;<em>Storj Labs has promised to burn 1 additional STORJ for each STORJ sold during the crowdsale&#8221; <\/em>To avoid confusion with the old coins.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Storj is\u00a0developing a next-generation cloud storage solution. They ICO&#8217;d on<\/p>\n","protected":false},"author":1,"featured_media":1415,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-1383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ico"],"featured_image_urls":{"full":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1.jpg",300,224,false],"thumbnail":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1-150x150.jpg",150,150,true],"medium":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1-300x224.jpg",300,224,true],"medium_large":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1.jpg",300,224,false],"large":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1.jpg",300,224,false],"1536x1536":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1.jpg",300,224,false],"2048x2048":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1.jpg",300,224,false],"chromenews-featured":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1.jpg",300,224,false],"chromenews-large":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1.jpg",300,224,false],"chromenews-medium":["https:\/\/www.talkcrypto.org\/blog\/wp-content\/uploads\/2017\/09\/storj300b-1.jpg",300,224,false]},"author_info":{"info":["seandotau"]},"category_info":"<a href=\"https:\/\/www.talkcrypto.org\/blog\/category\/ico\/\" rel=\"category tag\">ICO<\/a>","tag_info":"ICO","comment_count":"0","_links":{"self":[{"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/posts\/1383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/comments?post=1383"}],"version-history":[{"count":10,"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/posts\/1383\/revisions"}],"predecessor-version":[{"id":1409,"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/posts\/1383\/revisions\/1409"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/media\/1415"}],"wp:attachment":[{"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/media?parent=1383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/categories?post=1383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.talkcrypto.org\/blog\/wp-json\/wp\/v2\/tags?post=1383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}