AirDrop IQ tokens

How does the company releasing the token (IQ or otherwise) make any money (beyond what they are given by EOS-VC) if they are given away for free to EOS token holders? ( Make more than 1 billion tokens and keep some for themselves?) $1 billion USD from EOS plus outside VC money is a lot of money, but not enough to fund more than 100 companies at $20 million (?) each (which is not a lot of money by these large ICO standards). Thx.

Comments

  • KevKev
    edited January 2018

    I think part of it is an attempt to re-define these ICO standards - I bet the funding given out to these applicants will be far less and more tightly managed than ICOs we've been seeing. New companies will be required to have a budget, goals, etc and will have to show progress to continue receiving funds, which may not be a bad thing.

    It's hard to justify a new company needing $20+ million to get off the ground, especially when the product is a piece of software run on a blockchain that already handles the back-end. EOS is changing the industry in many ways and my guess is this VC fund is part of that.

    You're probably right about the first part of the question, Everipedia will likely keep a portion of IQ for themselves and let the market decide how much their tokens are worth. I bet they'll do okay.

  • Any projects deployed on EOS will need bandwidth and other resources, which probably means they themselvs will hold certain amout of EOS token, which means they too will recieve the airdrop of their own token...

  • Everipedia hasn't announced their tokens distribution process yet, they might only airdrop a very small percentage of their max token supply to EOS addresses. The max supply and circulating supply info hasn't been released yet either.

  • From my point of view, airdropping achieves 2 things;

    1) Good distribution of voting rights
    2) Instant market for your token

    This means that it is much easier to raise the value of your token and stop whales taking over your DAC, win-win :)

  • I think there is not enough information to answer you question yet.

    One amazing thing about the airdropping is that makes much cheaper to lunch an ICO because it is not necessary to deal with all the legal documentation, so the programmers can focus on the tool and not in the bureaucracy.

  • Here's the plans for the IQ token distribution:
    50% airdropped to EOS holders
    30% to be minted over the next 100 years and distributed as rewards for content creators on Everipedia.
    20% reserved for the Everipedia team.

  • A few additional questions:
    1. Are all dApps on the EOS platform obligated to do an ICO and airdrop tokens?
    2. Is there an option to launch the ICO after the dApp has a user base and usable product?
    Thanks for taking the time to answer.

  • 1) No, there's no obligation for all dapps to airdrop their new tokens to EOS holders. Only the dapps that use part of the VC fund of over one billion dollars that block.one funded to help develop and promote startups on the eos.io platform will have an agreement to airdrop some of their new tokens. Anyone can start a dapp and launch it on the EOS blockchain without providing an airdrop, but they will not receive much help/support/funds from block.one. Also many dapps will not even use their own tokens, but instead use other popular cryptocurrencies, so there may not be a need for an ICO.

    2) Yes, Everipedia is a perfect example of this. They already have IQ points on their website given to contributors for adding good content to a page. They are just converting the IQ points into tokens.

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