PNK minting and 2nd token sale - rights issue - preferential treatment for current holders

Proposal
#1

I didn’t figure it out, I just agree with some points made on Telegram, check them out:

• https://t.me/kleros/70649

@jamaicoin: what happens in the stock market is a (20%) discount for current holders

• https://t.me/kleros/70716

@Stuart_James: @jamaicoin has a point, the thing is we’re quite restricted on how we can offer. You want to incentivize your holders with discounts for their support but at the same time, keep as equal a playing field for all. Keeping with the IICO ethos is our ideal scenario I guess but personally, I do feel supporters of the project should be rewarded where possible.

In corporate and equity world: https://en.wikipedia.org/wiki/Rights_issue

A rights issue or rights offer is a dividend of subscription rights to buy additional securities in a company made to the company’s existing security holders.

In startup and venture capital world - those who invested already - angel, seed, series A - have priority in subsequent rounds.

Proposal

Existing token holders participating in the 2nd round of sale will receive 10% bonus on the amount they buy. The amount eligible for the bonus is limited by 2x the existing balance.

The snapshot of the balance (block number) TBD. Avoiding drastic market moves

The incentive should be subtle. Thank you for the extra 10% but not remortgaging my house. Those who want to acquire extra 10% are unlikely to do massive shopping as that would increase the price and baseline of the sale, see the thread with exact pricing tiers: PNK minting and 2nd token sale - exact pricing tiers and numbers

Example

I own 200k PNK.

I purchase 500k PNK in the 2nd round sale.

400k PNK will be eligible for 10% bonus.

I will receive 500k PNK instantly, and the 40k PNK bonus after the sale is concluded.

Technical implementation

https://etherscan.io/token/0x93ed3fbe21207ec2e8f2d3c3de6e058cb73bc04d#readContract

balanceOfAt

It’s easy to tell what was my balance at any point in the past.

It is easier to implement bonus than discount.

Bonus can be sent after the sale is concluded.

Discount would have to be caculated during the sale.

Of course all the numbers (10%, up to double the amount) are arbitrary.

PNK minting and 2nd token sale
#2

Comparison to Airdrop

• https://t.me/kleros/70805

I was thinking about the airdrop but REJECTED this idea.
Airdrop is nothing else than de-valuing existing supply.

Here is the main difference:

  • airdrop happens for everyone
  • rights issue is only for those participating in 2nd round

(as explained initially - something small, in region of 10% - not an amount that would break the economy or manipulate the market)

If you ever were to do the airdrop, require a manual call from the airdropee.

Here are the reasons:

  • those who own 50 PNK from previous airdrop (no need to pollute the blockchain)
  • some guys may prefer not to own it (such as Kleros Cooperative may voluntarily skip)
#3

About time to submit the proposal?

Quick ideas:

  1. The snapshot block should be when the sale was announced
  2. Only count addresses that have had PNK for more than 3 months prior to the snapshot block (reward only long term holder)
1 Like
#4

I don’t think that this is what @jamaicoin meant, I think meant that current holders should be able to buy first (and then the remaining PNK for sale could be sold to other buyers). Giving a discount/bonus to previous buyers will likely result in new buyers feeling like “second class buyers” and discouraging them from buying PNK.
If there is a discount to current buyers, this could be bypassed by new buyers putting orders on exchange slightly above the discounted price. Current holders would then buy PNK and sell them directly on exchange slightly above the discounted price. Because this requires a bit of work and economic understanding, this would likely profit the larger buyers/holders.

#5

Is it hard (from a technical standpoint) to whitelist current PNK holders and let them buy first for a certain period? Otherwise look fine to me.
There should probably be some minimum PNK balance since there was an airdrop of PNK a while back and it shows commitment to the Kleros idea. How about 100K PNK, or is that too steep?

These were also some good ideas by willy that I agree with.
We shouldn’t wait too long anymore since it will put unnecessary pressure on the devs and they want to enjoy their holidays too ;p

2 Likes
#6

No, not really. I’ll show you how…

Also from the sister thread:

I was away from keyboard for the weekend and I thought about opening the sale to existing holders for 24 hours before the thing.

It’s relatively simple. Here is some PSEUDOCODE:

// or move month to the future to allow more time for marketing efforts
timestamp DateStart = 11th of January 2020 16:00 UTC 
timestamp CurrentHoldersOpenWindow  = 1 day

uint PNKSnapshotAmount = PNK.getBalaceOfAtBlock(someblock, msg.sender)

// ...in the buy() function...

if (PNKPurchasedNow <= PNKSnapshotAmount) { // bying within our limit
  require(time.now > DateStart)
} else { //  more PNK than the amount allowe
  require(time.now > DateStart + CurrentHoldersOpenWindow)
}

The buyer will have to calculate themselves on the on the front-end how much PNK they are allowed to buy in the initial opening period.

If they have 100k PNK but send ETH to but 110k PNK rather than calculating refunds on the smart contract, we are simply reverting.

https://etherscan.io/token/0x93ed3fbe21207ec2e8f2d3c3de6e058cb73bc04d#balances - 139 holders with 100k or more. I think that 25-30% will take part in the 2nd round of sale, no need to overengineer.

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Kleros Second Sale - Proposal for Current Holders to Buy at Lowest Prices
#7

@marsrobertson If you want to make this proposal, could you formally put the exact text of the proposal in a “Vote” thread?
If instead you prefer this proposal, the proposal of the thread can be abandoned.