The INX TGE is almost upon us. And therefore so is our Sonar sale.
The ICO meta is back. I believe ICOs are far better than airdrops, which leak value all over the place. This will test whether I am right. That said, Mafiosos gotta feed their families, or at least deliver them cigarettes, so we have made concessions to CT via Craterun.
The key to Sonar is pricing; if you price too high, no one will be interested.
There are a few ways to price a pre-launch token, and tbh we tried almost all of them during the first ICO era from 2014-18. But imo setting a low fixed price and curating buyers is the ideal solution. So we are setting a fixed price of $300m FDV with a 1-year lock. For context, the implied FDV of the INX token, based on the Patron NFT's price at the time of writing, is ~$400m. Now, no one loves unlocks, and creating a 1-year cliff with 5% of the supply unlocking on the same day in 2026 seems less than ideal. So we are also going to add an accelerated vesting option. If a buyer wants instant liquidity, they can exit vesting by paying $1b FDV. This optionality means that if the price is trading above $1b, some buyers may opt to vest early, thereby smoothing out the unlocks over the year. This price will decay from $1b back to the original $300m over the course of the locks.
We will sell 5% of the supply via Sonar. This means we will raise $15m. It is not a huge raise, but we already did a large sale for the Patron NFT last year, so this is more about distribution than raising further capital.
The main point of doing a Sonar sale is to provide wide access. The challenge is providing wide access to a constrained resource. So we have designed two paths to accessing the Sonar sale. Holding a liquid Patron NFT guarantees you an allocation in the Sonar Sale. The table looks like this.
One Patron = $2,000 allocation
Five Patrons = $15,000 allocation
Twenty-five Patrons = $100,000 allocation
One Hundred Patrons = $500,000 allocation
The second path will be a lottery system, with a minimum allocation of $200 and a maximum of $5,000. Which means if Patrons take up 50% of the total allocation, there will be room for 1,500 people to max bid, or 7,500 at a $1,000 average bid.
Registration for the sale will open in the next few weeks.
One final component of the Sonar sale is the token launch date. The TGE date will be the 15th of January. This is very much subject to change, but it will be within a few weeks of this date.
Simplicity and clarity are critical for a successful ICO. We want wide distribution ahead of TGE while ensuring as many people as possible have access. We must also brutally reject farmers, flippers, and sybillooors. If you are a genuine member of the crypto community, you've earned access to the best projects, and thank fuck Cobie decided to build Echo/Sonar, because it is pretty insane that one guy was able to yolo fix capital formation for us this cycle.
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Soon TGE OMG that's a good news