Community Vote Results and LOC Hardcap Change

230 Members of our community have voted on our recent HardCap vote

189 Voted with “Yes” (82.2%)

41 Voted with “No” (17.8%)

We are happy that our community has provided its valuable input for this important question.

As of this moment, the new official HardCap is in full effect and the website, one-pager and Whitepaper have been updated accordingly.

This could create a serious upward potential for the LOC token on the aftermarket.

How does this affect our project?

LockChain’s development and its road-map are not going to be affected by the lowered HardCap. This is because the potential increase in the token value offsets any cut in the initial budget. Since we hold 25% as a reserve, we have the comfort of sufficiently developing the project with funding for at least 3 years, and make a secondary offering on our reserves when the value of the LOC has increased (together with the popularity of our booking service).

For example, if the original token-sale event had generated e.g. 20M Euro, and we cut it to approximately 9M (32,000 ETH x 285 EUR). The short term net result would be -11M.

This funding however is not needed before the 4th year of the project development.

Furthermore with the new channel management integration, it might not be needed even by the 5th or 6th year of the project development.

At the same time, the cut in the HardCap could create a much stronger lift in the LOC token price on the aftermarket, because this limits the supply of the LOC several times.

Since we hold 25% reserves of the total amount of LOC, and in case we sell 20,000,000 LOC to public at current event, we would have approximately 10,000,000 LOC for a secondary offering when the time comes and if needed.

For example if the price of the LOC has increased to 2 Euro per LOC, that would mean that we would have a reserve of 20M Euro on hand which can offset any short term net cut in the budget that arises due to the Hardcap lowering.

If the price increases to 10 Euro per LOC, then we would have 100M as immediate cash on hand.

How does this affect anyone who already bought?

It doesn’t affect you in any other way but making the value of the LOC that you already bought more appreciated. This is because there is less room for other people to get in during the token-sale event.