How we change our ICO to comply with regulations
What will happen when token sale contributors realize that many bright concepts they have been waiting for so long have not been developed, or don’t work as a business?
Or how will they react, when their favorite ICO projects they backed financially will be hit with class-action lawsuits? One after another. 2018 started with a lot of articles alerting government regulation will be ruthless this year.
Obviously, we can’t be sure it will happen, but watching the rapidly growing speculators, and the more and more frequent statements by regulators, it’s likely.
That’s why any sane ICO project’s top priority should be regulatory compliance. Moreover, if an ICO project doesn’t take preventive actions, that should be considered as a major red flag.
But to be compliant with the disrupting philosophy of blockchain, the old-world rules of securities commissions, and the extreme profit requirements of crypto investors often seems to be an impossible mission.
It’s clear, that regulators can’t evolve as quick as technology can. This made us to think over our mission, and how our project has to change. We have to change, because we have responsibility towards the community which roots for TE-FOOD, and towards the token buyers because they trust us with their hard-earned money.
Some of the statements below may seem blasphemy to several people, but our goal was to provide a sustainable and safe structure for all TE-FOOD supporters in a rapidly changing environment. We believe that in 2018, many ICO project which want to be compliant to the regulations will follow these steps.
One important problem is that ICOs are selling tokens before they can transfer them, and long before the tokens can be used in the system.
This is why we decided that TFOOD tokens will be transfered immediately to token buyers (with a successful preliminary KYC process), and will be usable immediately in the TE-FOOD system to pay for transactions (gas price), pay for value added information, and reward consumers for validating food products.
No waiting, no roadmap, but instant usage.
Right after the start of the token sale, TFOOD Market will be opened. It will be a bid market (like eBay), the primary market where supply chain companies and consumers can buy TFOOD to pay for services inside the TE-FOOD system, or sell their excess tokens.
During the Token Sale, the sell price of TFOOD is fixed to the token sale list price: $0.05.
Token supply and token flow
Before the token sale, 1 billion tokens will be generated.
- Public token pool: 500 million tokens will be in the public token circulation (400 million offered in the public sale, 100 million to marketing, proof-of-care, cafeteria pool).
- General reserve: All remaining 500 million TFOODs will be held in a General reserve.
As the number of TE-FOOD customers grow, they will require more transactions, thus, more tokens. At the same time, certain participants of the ecosystem will staking tokens, and some wallets are lost or forgotten, which will limit the supply.
We don’t want to endanger the core activities of TE-FOOD, that’s why in certain times, we maintain the right to release tokens to the market from the General reserve beyond the 500 million limit. However, the released excess amount will be justified by the need for the tokens in the circulation. Finally, when TE-FOOD grows further, all 1 billion tokens will be on the market, which we believe will be sufficient for long time operation.
- 40% Public sale
- 10% Marketing, proof-of-care, cafeteria
- 50% General reserve
Unsold tokens will be put into the General Reserve and will be sold on the TFOOD Market or during a later Token Sale, until Public token pool reaches 500 million tokens.
Business plan and roadmap
The detailed business plan and roadmap is detailed in the White Paper. Its existence serves informational purposes, and intended to show a plan to ensure token sale contributors that the company will be sustainable, and able to provide the services they buy for a long term.
Allocation of revenues
Allocation of revenues is detailed in the White Paper. Its existence serves informational purposes, and intended to ensure token sale contributors that the company will be sustainable, and able to provide the services they buy for a long term.
Release of revenues
As a ready solution, TFOOD tokens immediately usable after the token sale to buy services on TE-FOOD. Therefore, token sale revenues are not held in multisignature escrow wallet, and immediately accessible for TE-FOOD International.
Think over the conditions we presented, we hope you will realize that they serve the common interest of the token sale contributors as it creates a regulatory compliant environment.
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TE-FOOD is the world’s largest farm-to-table food traceability solution. Started in 2016, it serves 6000+ business customers, and handles 400,000 business transactions each day.
ICO website: https://ico.tefoodint.com/