Hard cap & funds distribution
Dear readers! An important question could arise for those who have already studied our site and the whitepaper: why there is such a high hard cap, namely one billion dollars? Below we have prepared the answer.
What is the most important for any investment? The answer is — money. In order to buy an asset, you need the funds for which you buy it. Therefore, it is necessary that the Fund has some capital for the operations.
We set up such a large hard cap for reason of increasing the own funds of the OneSolution Fund. Let’s take a closer look at the tiers:
• $1 000 000 — Soft Cap
Development and launch of the IT-platform of the Fund in MVP mode
Implementation of an internal and external Blockchain
Development and launch of project’s own cryptocurrency — Solvo
• $2 000 000
Solving legal issues (registration and licensing)
Team expansion
Formation of an expert bureau for the Fund
• $3 200 000
Listing of the Solvo coin
Development and popularization of the currency, public mining
Launch of the fully functional OneSolution Fund
• $4 200 000
Creation and launch of the OneSolution Academy
• $8 000 000
Realization of an international marketing campaign aimed at promoting the Solvo coin, attracting new miners and investors
• $8 000 000+
Formation of the investment portfolio of the Fund
From the above figures it follows that $8M is the necessary amount for full-featured launch of the project, technical implementation of all the necessary elements and wide marketing campaign in many countries.
All funds raised in excess of $8M will be directed to the Fund’s portfolio. And as the Fund is decentralized and is managed by Fund’s coin holders (tokens will be exchanged for coins after the launch of the project, you can learn more about this from our other article), only the Fund’s participants can manage these funds through a general vote.
The task of the founders is to launch the project. Immediately after this, the founder’s ability to manage the Fund will be limited to the number of coins in their hands. That is, the founders, like the other participants, can participate in the voting, but they have no special powers, and they cannot make any management decisions on their own.
Thus, as the amount of raised funds exceeds $8M, all investors who supported the project during the ICO send a part of their funds to launch the Fund, and the other part is actually kept by themselves — stored in the Fund’s internal wallets. At that, maximum decentralization, an effective projects’ selection system, as well as its own blockchain, provide a full transparency and security.
Based on this, we can conclude that by investing in OneSolution you place your funds in such a way that they are controlled by you (the share of each contributor participating in decentralized management is equal to his investment) and at the same are bringing ever-increasing profits in the form of dividends.
And now let’s go back to the hard cap. Of course, the target of $1 billion looks fantastic enough. It is extremely difficult to achieve it on current market. But the developed by us coins issue scheme allows for an additional increase in the portfolio in the future due to deductions from the mining of new coins, equivalent to tokens that were not sold during the ICO.
The maximum amount of emission of both OSF tokens and Solvo coins in nominal terms is equal to one billion US dollars. All unsold tokens will be frozen, later they will be defrosted and burned as new coins mine. As soon as miners create a coin, an equal number of tokens is burned (measured at face value).
Deductions to the Fund’s portfolio are made from each created coin. At the first stage of mining — 10%, at the final stage — 30%. That is, as creating each new coin, its part goes to the portfolio of the Fund, managed by the participants.
Since the Solvo market price is tied to both the demand for coins and the Fund’s portfolio, as the portfolio widens, the cost of the coins grows. Therefore, deductions to the portfolio also increase. If in nominal terms at the last stage of mining, they are $0.3, then as the price of one coin rises to at least $100, they are already $30. Consequently, the Fund grows faster and faster, profits grow, and investors’ dividends increase.
Thus, we have developed an effective and beneficial to all parties system for replenishing the Fund’s portfolio. A one billion dollars hard cap makes it possible to realize it and avoid diluting the profit share per coin/token, which you will learn in detail from the following publications.
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For more information on OneSolution, visit http://1solution.io/.
