While building the Work X MVP, we started thinking about creative ways to shape our private sale. How could we utilize the network effects inherent to the crypto space, while also taking the risks and inconvenience of token sales into account? Experience showed us that in many cases, participants set up a pool to collect the minimum contribution, privately. Since it is almost impossible to prevent this practice from happening, we’ve decided to embrace it and eliminate most of the downsides for participants. The largest risk of pooling is the need for a central administration and distribution. To this end, we have designed a unique pooling mechanism that allows participants to individually buy and claim $WRKX tokens, thereby decreasing the average token price by pooling with others.
Private vs Public pools
We wanted to ensure a tool that enables different currencies and chains to come together in a single pool and smart contract. Participants can create a private pool in which they can control who has access to participate up to the maximum amount of $250.000. To utilize network effects and get a lower average token price, participants can also create a public pool. Every participant in a public pool can invite others.
Private sale example
In the private sale round, the token price will range from $0.39 to $0.35, based on the extent of pooling.
As shown in the image below, the token price will decrease gradually when more funds are added to the pool. This means that participants will receive a number of tokens that are based on the token price of the particular pool they participate in.
Example: Participant 1, allocates $80.000 to a new pool. He or she will receive (80.000 / $0.3692 =) 216.685 tokens.
Participant 1 then invites a couple of others that collectively allocate $70.000 to the same pool which pushes the token price to $0.36.
This means that participant 1 will now receive (80.000 / $0.36 =) 222.222 tokens, an increase of 5.537 tokens!
If participant 1 and others manage to fill up their pool to the maximum pool amount of $250.000, participant 1 will be able to earn 11.886 additional $WRKX tokens (228.571–216.685). Given a projected listing price of $0.80-$1.00, participant 1 already earned back 16% of his initial allocation, just by ensuring a larger pool, which decreases the average token price!
