The current ICO landscape is dominated by coins that are all image and no substance. Backed by millions of dollars in funding, ICOs for new cryptocurrencies seem to offer tantalizing opportunities to investors. A large ICO is often seen as an indicator of a coin’s potential – hence the buzz surrounding recent ICOs.
However, the buzz isn’t borne out by the facts. With the explosion of pump-and-dump schemes in the cryptocurrency market, it’s becoming clear that most large upfront ICOs are vehicles built to generate quick money. These seemingly attractive coins rest on flimsy, unproven concepts. They’re bare-bones ideas cooked up by profit-hungry developers with little thought to long-term prospects.
Skycoin is different. It’s a unique project with a history and a future. Unlike other coins, Skycoin isn’t a profit scheme – it’s a real product, built carefully over the past four years by a group of dedicated, mission-driven developers. Skycoin’s coin distribution policy is based on principles, not profits. This sets the Skycoin team apart from those who use ICOs as money-generating tools.
We believe that coin distribution should be fair. It’s as simple as that. By emphasizing fairness, Skycoin protects early contributors from inflation and speculation. Our goal is to spread Skycoin throughout the cryptocurrency community. We’re committed to making Skycoin a resource for the many, not the few.
This vision informs our distribution policy. Skycoin distribution will be an open process, with no transfers of coins at a reduced rate or through backdoor deals. Coins will be spread across as many people as possible, and the rate of distribution will decrease over time. This strategy puts Skycoin in the hands of users and community members instead of miners and speculators.
The point of Skycoin is to create a new and better future for the internet through the Skywire network. This larger mission puts Skycoin above other cryptocurrencies. Skycoin is about supporting long-term network growth. With $2 billion market cap, Skycoin can subsidize 20 million users to deploy $600 million in Skywire miners. The higher the price, the more users are subsidized to build nodes.
Because of this growth-oriented approach, Skycoin doesn’t need a large upfront fund. A smaller initial distribution (1% instead of 30% or 90%) is better – it creates more room for later distributions. While other coin developers seek huge amounts of upfront cash only to leave the project soon afterwards, Skycoin’s team is in it for the long haul.
The Skycoin distribution plan consists of a 30% initial distribution, followed by an ongoing maximum distribution of 5% of the coins per year, spread out over at least 14 years. The distribution from 10% to 30% will be through node incentives, and will take at least five years based upon user base growth and the building of a physical network. Distribution beyond the initial 30% will be hard-coded into protocol and time-locked so that coin distribution stays below the 5% maximum. By creating a hard-coded, time-locked distribution policy, we’re ensuring that the distribution stays fair and doesn’t deviate from our original intent.
Skycoin’s distribution policy also keeps the rate of distribution in line with user growth. This protects against inflation and makes the most of community resources. Target raises will only be done when funding helps reach milestones. The upcoming distribution will fund ongoing development, wallet improvements and 300 Skywire miners – a benefit that will be subsidized and distributed to supporters at cost.
All of this makes Skycoin distribution vastly different from current ICOs. While other developers introduce hastily-conceived coins for a quick profit, we’re deploying our own carefully-crafted cryptocurrency in support of a larger, long-term vision. For us, it’s not about the money. It’s about the future.
Skycoin is the achievement of years of coding, produced by over 80 talented developers. We’ve worked hard to realize our vision for Skycoin and Skywire. Since 2012, we’ve executed innovative improvements on Bitcoin that have revolutionized cryptocurrency. Our policy going forward is to protect the growth and equity of all coin holders. With distribution, we’re laying the foundation for Skycoin to deliver on that promise.
Main page: https://www.skycoin.net/distribution
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