Major announcement from the Co-Founder
Major announcement! A message from one of the founders
Last summer, we were faced with a tough decision. Should we enter the market on the dates announced before the presale and face maximum turbulence associated with the beginning recession or gather strength, wait out the storm, and enter the resurging market?
We understood that every month that passed strengthened our position. The product is developing, and our reputation and level of integration in the crypto industry are growing. However, we also understood that each postponement of the IDO would be negatively perceived by a certain part of our community of early EGO holders as if it were a sign of weakness. As if these actions were not in the interest of the community. In our communities, there were heated debates about whether or not to postpone the IDO, and despite the majority supporting us, many remained dissatisfied.
Time has passed, and now we can objectively assess the situation:
When we planned to launch the IDO in July, the market entered a recession. Terra Luna crash had just occurred, and the classic call to go to the Moon sounded like a mockery. Bitcoin lost 50% of its value and fluctuated around $20,000. At that time, we decided to postpone the IDO until the end of the year, understanding that we might have to do it again. By the end of the year, the situation had become even worse. The CFTC in the US brought charges against Binance, and Bitcoin lost 23%. FTX, one of the largest crypto exchanges, crashed. Bitcoin was worth around $16,000.
We were much stronger, with the support of funds and partners in the blockchain industry. After consulting with leading experts, we decided to postpone the IDO again.
And finally, we are holding an IDO
As expected, there was a thaw after a harsh winter — Bitcoin approached $30,000. Our early buyers received bonuses due to the IDO postponement (some of which were reduced in the final tokenomics, but new bonuses were added).
The project itself has transformed from an MVP into a full-fledged social network with a user base approaching 500,000. We have grown tremendously in all aspects.
The crypto industry is full of scams, and sometimes it seems that if something doesn’t go according to plan, then the project has taken the wrong path. The market would be predictable if there were clear criteria for success or failure. Trust the teams, not the scenarios.
2022 was a year of significant events in the history of the crypto industry:
1. The decision of the US Federal Reserve to raise the key interest rate caused the first drop in Bitcoin, followed by its correction and then another drop ($42,000 for Bitcoin, then $18,000). The decrease in the cryptocurrency market volume was 64%.
2. The collapse of Terra Luna.
3. Bankruptcies of Three Arrows Capital and Celsius.
4. The collapse of FTX and its related company Alameda Research.
5. Sanctions against Russians and their accounts on the crypto exchange after the start of the war.
In 2022, crypto investors lost $3.8 billion due to hacking attacks. This was the largest amount ever recorded in history.
EGO Token
In 2022, the biggest failure for EGO was probably the postponement of IDO. You have to agree that the year wasn’t as turbulent for us as it was for the industry.
But now, let’s take a look at what we’ve accomplished since the summer of 2022:
— We’ve attracted VCs and partners. Paysenger has gained support from industry leaders like Polygon and ConsenSys, as well as institutional investors.
— Product development: we’ve released two mobile applications (for Android and IOS) and made significant improvements to the Paysenger web version.
— Large-scale advertising campaigns: a much larger number of people are now using the application, including many cryptocurrency enthusiasts who are interested in the token and the upcoming IDO.
— EGO Token now has full utility within our product, and we’ve significantly improved the reward system to stimulate the token without devaluing it. We’ll share more details on this soon.
We’ve done a lot, and although we’ve taken some extra time to get here, we’ve been acting solely in the interests of our community. With great respect to each member.
We’re currently finalizing agreements with CEX and Launchpads. We have preliminary agreements with Bitmart exchange, as well as Tokensoft and several other launchpads. We’ll announce where we’ll be listed very soon. However, I can already announce the dates.
IDO will take place from April 24 to April 30.
Hooray!
Final Tokenomics.
As you may be aware, projects can modify their tokenomics before TGE as it is impossible to foresee all changes and challenges over an extended period. Startups that can adapt to evolving economic conditions are typically the most successful ones.
Change can happen both internally and externally. As our team’s expertise grows and we continue to attract experienced professionals and industry leaders, it’s important to acknowledge their insights and input. Disregarding this expertise could result in harming the project and community expectations.
Market entry strategy
Our team’s experience enabled us to devise a market entry strategy for our token:
— Initially, we moved the IDO to a more favorable time.
— In the second stage, we balanced our tokenomics to benefit all ecosystem participants and support our marketing efforts to promote the token after IDO.
TGE and IDO
As you know, TGE is the biggest event in the life of a token. Our objective is to use this event to the maximum benefit of ecosystem participants. It is right after the IDO that the token attracts the most attention, and it is right after the IDO that the token’s market capitalization is minimal, which allows for the successful promotion of the token.
Accordingly, our goal is to maximize the token’s momentum right after the IDO. To achieve this, after numerous consultations with our advisors and backers, we have decided to reduce the initial market capitalization at TGE by almost 7 times!
Earlier, due to the IDO postponement, we announced some bonuses for early ecosystem participants. Some of them have changed the final tokenomics. The changes affected our strategic partners (to a greater extent) and the community of early buyers (to a lesser extent).
Final changes.
1. Most of the tokens in the project treasury and token ecosystem have been frozen. In the first year, a small fraction of the tokens will be unfrozen to boost the token economy, mainly for rewards for locking and providing liquidity, as well as tokens needed for liquidity on CEX and DEX.
2. The user rewards on the platform are balanced to create a circulating economy. Profile levels have been introduced to provide various advantages to Paysenger platform participants. One of the significant benefits is the ability to withdraw tokens from the platform, which is only available to users who have attained the highest level in the system. The cost of all levels is 80% of the annual reward pool. The price is dynamic and adjusted every quarter to safeguard the token from devaluation.
3. The allocation of tokens for the public round has been reduced. We intended to sell tokens worth $800,000, but in the final tokenomics, we only allocated $560,000 worth of tokens for IDO participants. However, this has allowed us to increase the unlock for IDO participants to 30%. Our objective is to attract as much attention to the token during and after the IDO.
4. Initially, Angel and Private round participants had a cliff of three months after TGE. Still, due to the IDO postponement, we have announced some improvements to the initial conditions, although some of these improvements were slightly reduced when synchronizing the tokenomics with the launch strategy.
The cliff remains in place but has been reduced to two months for the Angel round and one month for the Private round. We will credit early-round participants with an additional 10% of tokens.
Additionally, we are introducing a new bonus. Each of the early buyers will receive the seventh (highest) level in the Paysenger ecosystem, with all the privileges that come with it. More details about this will be provided in the third update when discussing the token’s utility.
5. The strategic round has a cliff of 12 months, significantly reducing the token’s burden in the first year. We have improved the conditions for early buyers in the Angel, Private, and Public rounds.
I attach the final tokenomics:
Utility Token
A utility token is at the heart of any web3 project, and how well the token is built into the product determines its future in the market. It’s not the money poured into marketing, although that is important too. It’s the demand for a utility that drives the demand for tokens in the market.
Over the past year, we have worked tirelessly to add value to our EGO token within Paysenger. However, before we address why the token is crucial, let’s first discuss Paysenger’s purpose, the issues it solves, its differences from other Web3 projects, and why it’s a worthwhile investment.
Paysenger App
Paysenger is an innovative platform that revolutionizes the way creators interact with their audience. Unlike many Web3 projects that merely copy Web2 projects and add tokens, Paysenger offers the ultimate solution to its segment that competitors cannot provide.
After analyzing over 600 products for creators, we confidently say that Paysenger is a game-changer.
Paysenger not only provides the best tools for monetizing content and engaging audiences, but it also expands the paying audience of creators (by allowing them to support authors, and buy and order their content — with EGO tokens).
Tokens can be mined directly on the platform by performing various tasks. Now, active fans limited in fiat can interact with their favorite creators. Thus, the paying audience has become much larger.
In addition, through tasks and rewards, the platform motivates users to order content from creators, support them on a one-time or monthly basis, and buy their posts in NFT. This forms a passive income for the creators and helps them get closer to their audience than ever before.
Paysenger App Economy
Payments on Paysenger are not limited to tokens alone — therefore the project is the perfect bridge between Web2 and Web3 and is not just a service for crypto enthusiasts. The platform is designed to encourage users to perform targeted actions with tokens, thereby earning them.
Rest assured, Paysenger’s circulating economy is well-designed, and reward tokens won’t flood the market. The rewards are intended to increase interest in the token, not devalue it.
With the EGO token, you can:
— Order content from your favorite creators, communicate with them and support their creativity;
— Invest in creators’ posts by buying them in NFT to earn more tokens;
— Both creators and fans can upgrade their profiles by unlocking loyalty levels with tokens. These levels offer serious benefits, such as automatic minting of all content in NFT, the ability to view creators’ premium content for free, and token withdrawal.
EGO token within the ecosystem
Yes, in order to withdraw tokens earned on the platform, the user must spend a considerable amount of tokens. Part of the tokens will be returned to the reward pool, and part will be burned.
Thus, the total number of tokens in the ecosystem will decrease with each active user (we have developed more than 30 different bonuses for the loyalty ladder). We have carefully thought out the token and product economy as a whole.
Early token buyers will receive premium access to the platform! In other words, you’ll get the highest level of the loyalty program for free!
Thank you for supporting us throughout this time, making difficult decisions with us, and remaining the backbone of our ecosystem. Winter is over. Let’s thaw out.
We are ready to shine brighter than ever before!
Sincerely,
Egor Trufanov, Co-founder and CMO at Paysenger
