Cypherium | Initial Mainnet Offering (IMO)
Dear Cypherium Community,
We would like to walk you, our community, through an explanation of our Initial Mainnet Offering (IMO).
Here we present our rationale for choosing an Initial Mainnet Offering (IMO), and we explore why an IMO is the best choice for our project going forward. We dive into the specifics of our allocation and valuation, followed by how we arrive at these numbers, why they will be healthiest for our project going forward, and some expectations we might have given these numbers as well as the performance of similarly structured releases.
Cypherium Initial Mainnet Offering (IMO)
The Cypherium Initial Mainnet Offering allows users of our software to purchase Cypherium Tokens (CPH) directly from our network in order to operate our technology.
Because of the unique and turbulent valuations of cryptocurrencies in recent years, it is important for us to distinguish this system from other popular forms of token releases. ICOs were met with much hostility in the public eye, and for good reason. ICOs were in some respects hollow imitations of the IPOs that permeate modern finance. Most ICOs sold coins or tokens to investors that wanted to buy new cryptocurrencies before their blockchains had been made public so that they might make a profit once that currency grew in value, either through adoption or (more often) through hitting a popular exchange, where the token could be day-traded.
Many ICOs that took place in 2017 or 2018 have vanished. In some cases, projects have run off with the money of their investors with no intention of putting out a working product; in other cases, the tradable tokens accrued a wildly high and inaccurate valuation, until they were exposed and deflated as meaningless placeholders, exposing the stagnation of projects that have depleted their resources and momentum. However, in the most successful ICOs, the ones that continue to support the progress of new crypto projects, those Initial Coin Offerings were quintessential examples of security issuances. Put plainly, ICOs were a strategy for new projects to receive liquidity from a wide array of investors riding the hype of a Bitcoin bull market on the basis that they would receive a guarantee of some future equity. While many in the space fought against this framework, in practice, ICOs operated exactly as securities, which has gotten our industry in a number of major regulatory binds. ICOs are, in fact, partially to blame for the regulatory mistrust facing the decentralized tech industry at large.
An Initial Mainnet Offering follows the roadmap of bitcoin and other leaders in the distributed ledger space to combat the negative aspects of ICOs point by point. The crucial difference is, of course, that an IMO offers users to participate in a technology that has already been successfully delivered. Firstly, this combats the possibility of the project being a scam or hollow promise. Unlike ICO schemes that essentially issue stock for a holding company, Cypherium’s IMO is grounded in the technology itself. Anyone interested in purchasing our coins can experience firsthand our network’s speed, throughput, finality, and innovation.
Additionally, an IMO helps our project work toward a fairer valuation of our operating network. Because purchasing CPH does not amount to idle speculation on exchange-based securities, our sale can stave off the turbulence of day-trading and profiteers. And finally, delivering our network before issuing our coins to interested users should provide some transparency and clarity for regulators, or really anyone interested in decentralized technology, who might be resistant to the uncertainty and distrust that unfortunately dominates our industry’s coverage in the public eye.
For details on how to participate in our final pre-sale through Initial Mainnet Offering, please review the guidelines posted on our Cypherium Token (CPH) Final Pre-sale Website.
Cypherium Token (CPH) Allocation & Issuance
We have decided, for the health and scalability of our network, to change our token economics model from a halving model inspired by earlier generation blockchains to an inflation model, which can more easily foster productivity and growth. We have considered factors such as network fairness, stability, and incentives as guiding principles to develop an inflation-based token-economy.
Our model was inspired by monetary theory whereby a change in money supply is the main driver of economic activity. Where central banks implement monetary policy and tinker with the money supply to exert influence over economic growth, Cypherium plans to increase the token supply year-over-year to support the overall productivity and growth of our token economy. That is to say that increasing availability of our tokens every year would enable more transactions and execution of smart contracts. Being a technology first platform, we seek to leverage a growing supply of utility tokens to create more use-cases over time with rising adoption rates. This model demonstrates a simple and predictable economic growth rate with the total supply compounding at a 5% inflation rate year-over-year. We envision a fairer, more stable, decentralized economic structure without compromising the incentives. Our Proof-of-Work model enables miners’ participation with predictable low fees and competitive rewards.
In short, this model enables our project to exist happily alongside other blockchains like Bitcoin whose token models prioritize their ability to store and accrue value over everyday industry. The Token Allocation and Distribution plan during our IMO and for the next ten years are as follows. These metrics below aim to provide transparency and clarity to investors.
Cypherium Token (CPH) Valuation
We have considered a number of factors to determine a reasonable price point for operating the network.
One of the most important considerations for this valuation has been the fact that Cypherium has already delivered working products with observable statistics and meaningful partnerships, setting it apart from most other mainnet launch offerings.
Presumably, if you are reading this, you already have some knowledge of Cypherium and its innovations in the blockchain space. However, some important (and brief) highlights of our mainnet include: a dual chain structure in the public network that utilizes both HotStuff and Proof-of-Work to achieve fast, secure, and scalable decentralization; high network throughput and speeds reaching upwards of tens of thousands of TPS; Turing-complete smart contracts; a Java virtual machine; and instant transaction finality. Cypherium is the only blockchain that revises the working innovations of the crypto space — instead of sacrificing decentralization or veering into unproven consensus mechanisms. Cypherium seeks to make Proof-of-Work scale in unprecedented ways, at a time when so many peer projects have abandoned this fundamental innovation of Satoshi’s Bitcoin, the very spark that brought our industry to life. Cypherium is the first time that this open, permissionless mechanism has been given an opportunity to become a viable transaction solution.
Moreover, in addition to the value that these innovations add to the crypto space, Cypherium has an enterprise-level blockchain already in use through the stack platforms of Google, Amazon, Microsoft, and IBM. Cypherium is the first blockchain project that has partnered with all of the tech giants. Cypherium Enterprise does more than build brand credibility and display awareness of the power of our technology; the enterprise blockchain adds concretely to the robustness of our mainnet in several ways.
First, instead of paying membership fees, enterprise members can hold CPH for voting power in a blockchain consortium. This promotes CPH beyond the mainnet and creates a symbiotic relationship wherein private blockchain users have a stake in the public network and vice versa.
Second, enterprise adoption attests to the speed and efficiency of the underlying technology of our network. We saw this in action with the release of the Cosmos network, for example. Prior to their public network, Tendermint had been released as a private chain technology, then the public network Cosmos was built on it. Enterprise-grade chains may serve, in this way, as a proof-of-concept that may eventually migrate onto the public chain.
Third, CPH is Cypherium’s native utility token and can be used to send transactions or execute smart contracts. CPH is intended to be used for creating and using decentralized applications and services, as facilitated through a decentralized platform. The tokens operate the private chains and can be used as an intermediary for exchanges, which serve a similar purpose to that of Ripple’s XRP. This promotes general liquidity in the crypto space, as it encourages private and consortium blockchain users to maintain a stake in digital assets.
And finally, the Cypherium Enterprise chain can serve eventually as a Layer 2 solution, much like Bitcoin’s lightning network, that both augments and is anchored to the public chain, in order to help our entire ecosystem grow at scale.
In short, our valuation comes from our software’s deliverables, the value that our mainnet adds to the crypto space, and the demonstrable benefits put forward by our preexisting private chain solutions. This offers a carefully considered valuation that respects our technology, developers, and community.
Cypherium Road Map
Since launching our Testnet in 2019 and at the time of our Initial Mainnet Offering (IMO), we have strategically partnered with global conglomerates and government agencies, including Google, Amazon, IBM, Microsoft, Randstad, Chainlink, and the Federal Reserve Board — the U.S. Faster Payments Council. We have been working closely with IC3, a blockchain technology research & academic consortium, to deliver the innovations of decentralized technologies to modern enterprises and bring the era of blockchain mass adoption.
Cypherium will continue to implement real-world use cases and attract talented developers. Our technology has displayed its capacity and capability for identity registration and Human Resources facilitation through our partnership with Randstad, the world largest HR consulting firm. We are committed to developing an application-focused blockchain and will continue to pursue these opportunities, while actively growing our community of talented DLT developers.
Precedents and Expectations
Binance CEO, CZ, says it best: “Good tech wins!”
What does “winning” look like? And what should we hope for the Cypherium network?
We believe that the healthiest path in this stormy climate has been and continues to be the one that Cypherium is walking. In other words, we must continue to let our technology lead the way for our community rather than letting zealous marketing or enthusiastic hype get out in front of the usefulness of our software.
Our network benefits most when it is not the target of empty speculation, but rather a subject of fascination for the developers and problem solvers along today’s technological frontier. Like Bitcoin, like Ethereum, and now like Cosmos, Cypherium refuses to put the cart before the horse, insisting instead that our innovations and industry connections speak for themselves.
A positive launch for Cypherium will be use cases, adoption, new partnerships; it does not mean riding market trends towards a favorable outcome.
For good tech, “winning” means “working.” It means becoming a necessary part of the decentralized tech ecosystem and a state-of-the-art enterprise solution. And with IMO, that is exactly what Cypherium intends to accomplish. For more information on the Token Offering, please visit the Cypherium Token (CPH) Final Pre-sale Website.
