Token Migration Plan Pt.2
Mon, May 8, 2017
We have thought long and hard about how to make this one of the most fair and transparent token sales. Because SJCX (the original Storj token) is an existing token with a working product and protocol, which is very rare in this development stage in the space, we had to take additional steps in formulating our token plans.
We believe the following plan is the best step forward, and will allow the Storj ecosystem to accelerate its growth. Our primary goal for the token sale is to create a mutually beneficial structure for Storj and its supporters in order to build a large and thriving ecosystem. Since SJCX will remain liquid during the sale, we want to incentivize people to buy the new STORJ token from the token sale in order to maximize the funds available to speed up development of the Storj ecosystem and sustain it over the long term. Our commitment to this plan will be outlined in the Terms of Sale which will also include a reduction of the total supply tied to token sale participation and a plan to organize responsible management and oversight of the remaining reserves.
There are 51,173,144 SJCX currently in circulation, out of a total supply of 500,000,000 SJCX. Most of the circulating supply of SJCX was sold in our first crowdale in 2014 to our supporters, with smaller portions being distributed as farmer rewards, community bounties and rewards, and other expenses over the past three years. The remainder has been held by Storj Labs, as SJCX is a Counterparty asset which has been locked so that no more can ever be created.
We have three primary objectives for the token sale:
Fund and accelerate ecosystem and protocol development
Migrate our token from the Bitcoin to the Ethereum blockchain
Bring Storj Labs Inc.’s strategic token holdings in line with market expectations
The sale will begin on May 19th, 11:00 AM EDT (3:00 PM UTC) and end on June 19th, 11:00 AM EDT, or when the cap is reached. We have worked to complete a roadmap for the future of Storj and have budgeted the required resources needed to responsibly execute this plan. To fully realize our vision, we have set a target and cap of $30MM for the token sale. The sale price will be fixed at $0.50 per STORJ token, payable in BTC or ETH equivalent. In order to incentivize our supporters to participate in the sale, we will be burning one token from the outstanding reserves for every token sold in the sale.
All existing SJCX Counterparty tokens will convert on a 1:1 basis to the new Ethereum based ERC20 token called “STORJ”. The migration will start no later than July 19th 11:00 AM EDT (3:00 PM UTC) and end October 19th, 11:00 AM EDT. We are currently working on solutions to allow users to continue to migrate after the deadline if more time is required. Storj intends to retain the industry standard 20% to 25% of tokens for strategic purposes including farmer payments for testing and growth, funding community activities and support, and other expenses. The remaining supply held by Storj at the conclusion of the sale, burn, migration deadline, and not used as strategic reserve will be time-locked for no less than 6 months. During this time Storj will seek to develop a more transparent reserve management structure which may include programmatic distribution and/or a neutral foundation to help manage and support the ongoing growth of the Storj ecosystem.
As always, thanks for your support in this new and exciting journey. Today at 2pm EDT we will be doing a Q&A with CoinFund on the future of Storj and the token sale. You can find details here. After the hangout we will also be available in our community chat for further questions. Stay up to date on the latest news and announcements related to the token sale at: storj.io/tokensale.