This is an official announcement regarding how the SKY distribution will be handled from now on.
Skycoin’s distribution has had a history of being unclear and handled different ways.
At present, there’s no ICO. In the near future, there will be a limited ongoing OTC, handled by software.
The OTC will be accessible from the wallet and from the website.
The OTC will have a total cap, a daily cap, and an adjustable price.
Setting the price is a problem because Skycoin is already on exchanges. The OTC price will be adjusted manually based upon the market rate. When the price is updated, it will be based on the recent market price. The price will be set slightly higher than whatever that market rate is.
Skycoin has many long time holders, starting from the early distribution several years ago. We do not want to undermine their support. This was a big reason why we had set the price for the August distribution at 0.002BTC/SKY, which was higher than the exchange price. The coins have to be distributed one way or another, and we are trying to balance this with the concerns of previous investors.
The daily cap has not been chosen, but it will be chosen to make the OTC last for at least one year.
We will set the total cap of the OTC sale to bring Skycoin’s distributed percentage to be between 10% and 15%. Currently, Skycoin is at 6%. The remainder is reserved for the Skywire network subsidy, until we hit the 25% timelock cap and enter a maximum 5% per year distribution.
The Skycoin distribution is timelocked. This means that, of the undistributed Skycoin, 25% are immediately distributable. The remainder cannot be distributed until the first 25% have been distributed. Once the first 25% have been distributed, an additional 5% is unlocked for distribution. For each subsequent year thereafter, an additional 5% is unlocked for distribution. This gives Skycoin a 14 year distribution timeline, after the first 25% is distributed.
We may extend the unlocking process to take up to 25 years, but we will never shorten the timelocking schedule.
There is no requirement that the yearly 5% be distributed. The unlock only enables that amount to be distributed.
The locked Skycoin are allocated for expansion of the Skywire Network via targeted network subsidies and for bounties for platform development.
Translation bounty for Русский, 한국어, 日本語, 中文: 3 SKY
Translation bounty for other languages: 1.5 SKY
Read about the Skycoin Bounty Program