The Reasoning Behind the Purplecoin/XPU Crowdsale
In this article we will describe the process and reasoning behind the Purplecoin/XPU crowdsale. For more information on what is Purplecoin/XPU and what are stateless blockchains check out this.
Why a crowdsale and not a fair launch?
This is a fair question. As crowdsales are usually scams and Proof of Work protocols launch today via a fair launch, it doesn’t make any sense to host a crowdsale. Right?
A fair launch was the initial plan behind XPU. The problem with a fair launch is that we do not have any funds to bootstrap and test the network in the initial phase. Then the problem becomes that further development of the protocol/ecosystem relies on the generosity of others.
While the technology behind XPU is more or less proven, it is still only theoretical as no stateless blockchain has ever been deployed. More so, no stateless blockchain which is sharded has even been deployed.
Infrastructure costs
As we have to deploy 16 chains, instead of one, the initial bootstrapping costs are 16 times larger than any other chain. This is without running any kind of faucet for the testnet or running a public bridge (node storing state in a stateless blockchain).
A public bridge serving possibly millions/billions of users is not cheap and doesn’t work with a fair launch yet brings mainstream adoption and doesn’t break decentralisation.
Fund allocation and governance
The funds raised in the crowdsale are allocated to provide funding both pre-launch and post-launch. This is to ensure all phases in the project are covered.
Pre-launch allocation
The funds allocated in the pre-launch will be used mainly for finishing development, running testnets and faucets, and performing stress tests. At this point the project is governed by a central entity which is the company performing the crowdsale.
Post-launch allocation
Half of the raised funds are allocated post-launch. At this stage, a public foundation will be responsible for governing the project and managing the funds. The funds will be used for running infrastructure costs, as before, as well as sponsoring contributors for as long as possible.
Security fund
A quarter of the funds will be allocated to the security fund. They will be hedged by being invested in low-risk assets as an insurance against force-majeure events such as inflation, market exposure of ETH which we use as the platform for performing the crowdsale, or any kind of catastrophe. These funds will flow in the pre-launch or post-launch pool as needed.
How to participate
To participate in the crowdsale either visit https://sale.purplecoin.io or check out the crowdsale doc.
Learn more
- Website — https://purplecoin.io/
- Whitepaper — https://github.com/purpleprotocol/purplecoin_whitepaper/blob/main/whitepaper.pdf
- README — https://github.com/purpleprotocol/purplecoin/blob/main/README.md
- Crowdsale info — https://github.com/purpleprotocol/purplecoin/blob/main/doc/crowdsale.md
- Technical roadmap https://github.com/purpleprotocol/purplecoin-core/blob/main/ROADMAP.md
- Source Code — https://github.com/purpleprotocol/purplecoin-core
- Github — https://github.com/purpleprotocol
- Reddit — https://www.reddit.com/r/purplecoin
- Twitter — https://twitter.com/xpu_official
- Discord — https://discord.gg/5ZVZnKd
- Telegram — https://t.me/purplecoin_io
- ANN — https://bitcointalk.org/index.php?topic=5417004.0
