There are three usual options for tokens that were not sold during an ICO: vesting, distribution, and burning.
With vesting, tokens are being frozen on the project’s wallet for a certain amount of time (half a year, year or even more), after which they become available to people running the platform. Usually, they’re used for financing promotion or further development of the project. Less often they simply make platform owners richer.
Burning is the process of complete deletion of tokens. This scenario is completely fair and saves the token prices as it doesn’t cause any inflation, however, it may harm some calculations. However, the restricted volume of available tokens after burning can inflate the exchange rate, harm investors, and token holders, and cause problems to the issuing platform.
Distribution of tokens is the process of simple division of the remainder on a pro rata basis: if you hold 1% of already distributed tokens, you will get 1% of the unsold ones additionally. It is often considered as not the best option for tokens as the exchange rate drops, but it should be that way. You simply end up with more cheaper tokens, and your stake value remains the same, no matter how the token price has fallen.
Why distribute then?
Distribution of tokens has lots of pros on the other hand.
For starters, any ICO ideally emits a reasonable amount required for correct operation of the project, if the tokens are utility, and holding those from getting into circulation simply breaks the economics of the platform.
Secondly, platforms based on a smart contract may calculate something based on the token amount. Putting this into variable taken from the ICO smart contract or ‘oraclizing’ it before every calculation of such kind adds tons of code and transactions within the system. Both cost money in Ethereum, so running the platform that way instead of knowing that there are, say, 10,000,000 tokens, is much faster and cheaper. This is true for platform offering payouts, including BETEX.
And last, but the most important part for the investors: distribution of unsold tokens increases the weight of investors’ stake, maximizes their share of payouts, increases the comfort of more precise trading of tokens. Say an investor has 100,000 BETEX tokens. During the token sale, 1,000,000 remain unsold. With vesting, the investor’s 1% share remains the same, with burning it becomes 1.11% without increasing in numbers, but with distribution it will increase directly to 1.25%, causing greater payouts of profit share and more comfortable trading in future.
Considering the specifics of Betex platform and the math we put in the platform’s successful operation, distribution of the unsold tokens between investors is the best option.
