Issue of Solvo coin and exchange of tokens for coins
Dear readers! If you have already read something about our OneSolution Fund, you know that we are launching our own Solvo cryptocurrency. In this article we will tell you the way tokens will be exchanged for Solvo coins.
First of all, let’s talk about the advantages of creating of own coin and some of its features. Thanks to Solvo, participants are able to collect dividends and manage the Fund. Deductions from Solvo mining provide additional stable growth of the Fund’s portfolio. Binding the coin not only to the demand, but also to the growing portfolio of the Fund, allows us to set a positive growth trend of its price, as well as to limit the lower threshold. Together with the high volatility caused by quarterly dividend payments, all this ensures a high demand for coins from a wide variety of market participants, ranging from long-term investors and project participants to active traders and miners.
Let’s turn now to the mechanism of coinage and exchange of tokens for coins. The cost of one project token is $10, the nominal value of one coin is $1. The maximum number of tokens is 100.000.000, of coins — 1.000.000.000. Thus, the hard cap is $ 1.000.000.000.000. (remaining realistic we understand it is extremely difficult to achieve this target, but we still believe). All funds raised in excess of $8M (required for a full-featured launch of the project) will be sent directly to the portfolio managed by voting by the participants.
The more funds in the portfolio, the more opportunities there are to expand a number of objects for investment, to increase profits and dividends. Exactly this is a goal of Solvo coin public mining which will start after launch of the Fund.
So, during the ICO investors buy tokens and after the launch of the project coins equivalent to sold tokens are created while private mining. At the same time there is a 10% exchange bonus for all investors. For example, if during the ICO 20.000.000 tokens are sold at a price of $10, then, taking into account the bonus, 220.000.000 coins are created to be exchanged for tokens. Afterwards the tokens participated in the exchange are burned (including 2.000.000 tokens equivalent to bonus coins).
The Fund reserves all the unsold tokens which became frozen. Subsequently the public mining starts. Having appropriate equipment anyone can create new coins, from which there are contributions to the Fund’s portfolio. Now let’s go back to the example. After the issue of 220.000.000 coins another 780.000.000 coins remain available for mining.
To eliminate the problem of dilution of the share of profit per coin (token), their number is fixed and remains unchanged. As you mine, the tokens equivalent to the coins created are defrosted and burned. The equivalent is calculated on the basis of the nominal value (1 token worth $10 is equal to 10 coins with a value of $1). For example, if the miner generates 500.000 coins, then 50.000 tokens are defrosted and burned. This continues until the last coin is generated and the last token is burned.
In this article we looked into the system of exchanging tokens for coins. More information can be found in the whitepaper of the project. If you have any questions, you can ask us in our telegram chat.
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For more information on OneSolution, visit http://1solution.io/.
