Addressing the Community: Aergo Token Metrics

Dear Aergo stakeholders,

We recently provided new and existing purchasers the capability to acquire and trade Aergo tokens by partnering with a number of exchanges.

Through our strategic partner Blocko, the team has also been in very close discussions with existing and potential new business customers. We asked (and we were asked) many questions. These discussions helped us to understand better where we need to focus our future resources. The single objective being, to help clients maximize the benefits that Aergo — and distributed trust — can bring to their users and their businesses.

We recently stated that we aim to become one of the most trusted, transparent and open projects and through timely disclosure of information. This will be conducted not only with our growing community of followers — but in fact with all our future stakeholders. We will do this by being transparent, open and direct — but at the same time, we will do this while respecting any private arrangements we have with various parties (such as private investors, our technology partner Blocko and future customers).

In this memo we share essential details about our Aergo token metrics model; why we listed during one of the worst periods of stock and token market performance; we disclose more information on our emerging and even closer working relationship with our strategic partner Blocko; and of course we summarise what to expect from the Aergo project in the coming weeks and months ahead.

Aergo is not a typical blockchain project. It is a combination of a new public distributed ledger that supports an advanced programming framework that can be deployed on a secure and scalable cloud computing fabric for high-performance. Proven deployment methods support it and blueprints that are already in use with many companies today, providing real business value and not simple proof-of-concept demos. Aergo is also centered on an open source model (technology — licensing — developer support). In short, it’s built to be a developer-friendly platform.

Aergo is also a business delivery platform. It aims to enable programmers, system integrators, cloud delivery partners and companies of all types -to build new businesses and commercial ecosystems — all centered on distributed trust.

So let’s dive in by sharing the top five key questions and answers that emerged from our discussions with key participants in the Aergo ecosystem

Q: You recently conducted a token generation event (TGE) — who received these tokens?

We generated the full 500,000,000 Aergo tokens as ERC20 tokens. Aergo will use ERC20 token until our mainnet is released, tested and fully stabilized by end 1Q 2019 to early 2Q 2019. A limited number of tokens were issued to a range of (private sale) purchasers, backers, advisors and community members. This also included vital members of the Aergo team and the R&D team of our partner Blocko.

Q: So… you‘ve decided to list on certain exchanges — why now and what next?

Yes! We are already listed on three exchanges (GOPAX, Kucoin, and Korbit). We listed because our project is making great progress. Listing now potentially provides three key benefits:

• Raises the awareness of Aergo across a much broader range of potential businesses, dApp developers and integration partners across the world;
• It allows a more comprehensive range of purchasers to participate in the project, and;
• It supports our next stage of business development and especially the network build-out phase that will begin in early 2019. The project is well funded, and we have an excellent relationship with our partner Blocko — that continues to win critical deals and that generate real revenues — to help fund their work in supporting the early technical build-out of the Aergo technology stack. We plan to selectively list on more exchanges that extend our purchaser and geographic reach — especially in regions where we have received significant interest in Aergo (and the business potential it brings).

Q: What is the nature of your relationship with Blocko — what is planned next?

Blocko is our strategic technology partner for Aergo. It provides core technologies and technical skills that are being used to build the core “genesis” of the Aergo public blockchain platform of Aergo. Blocko also has deep enterprise-level expertise and in-production deployment competencies — that are critical in developing the platform. Blocko will also be the first block producer for our testnet and then mainnet. Our testnet is currently in the final stages of development and hardening; it is expected to be shipped (according to our original and publicly stated milestone plan) within the next few weeks. Our mainnet launch will follow (again according to our existing milestone plan) by the end of 1Q 2019 to early 2Q 2019.

We plan to announce (very soon) an extension to the strategic technology partnership to utilize Blocko’s sales, business development, marketing, and its extensive system integration and customer network. A prime objective here is to pursue existing clients of Blocko, to become early-adopters (and potential references) of Aergo. As part of any such arrangement, Blocko will be expected to commit significant resources over some years to support Aergo. Any such transaction will be openly disclosed as part of our ongoing transparency policy.

We even created a summary explainer video clip that describes how we work together. This can be viewed here.

Q: What are your Aergo token metrics — what are the various lock-up periods?

We sold 30% of the total Aergo token supply to private purchasers early this year. These purchasers entered into specific commercial agreements that are (and remain) in many parts confidential. With this in mind, we would like to disclose our token metrics today and provide as much clarity as is possible to our community and stakeholders.

Following the private sale (to qualified purchasers), we allocated all remaining tokens into three broad categories:

1. 15% for the people, advisors and key technical resources needed to build, test, deploy and operate Aergo
2. 31% for an ecosystem fund to enable and support the ecosystem necessary for developers and businesses to take full advantage of Aergo
3. 21% as a foundation reserve for future dApp, partners, customer, international business development, and marketing/PR.

Token metrics and associated vesting schedules*

• Total number of tokens: 500,000,000
• Total number of tokens either sold or pre-allocated to all stakeholder groups over the next five years: 275,000,000 (55 % of total supply)
• Private sale: 30% — Vesting Period: by end of 2019 (with the vast majority of tokens locked until the end of 2019)
• Private Sale Price (August 2018): USD 0.20 (maximum discount 20%)
• Total Tokens Sold Privately (including discounts): 161,877,924
• Private Sale Conducted in Ether: 1 Aergo token = 0.0004277 Ether/0.00003060 Bitcoin/0.20 USD
• Total Ecosystem Reserve (dApp incubation and partner enablement programs): 31% — vesting period five years (final details to be decided**)
• Total Foundation Reserve (Marketing, PR, Business Development): 21% — vesting period five years (final details to be decided**)
• Community rewards token price (December 2018): USD 0.28

A more detailed breakdown of the tokens in the Ecosystem Fund and Foundation Reserve follows:

• Advisors (existing and future): 6.6% — Vesting schedule is as follows: 10% at TGE, 40% end 1Q2019, 25% end 2Q 2019, 25% end of 2019
• Blocko R&D team: 5% — Vesting schedule is as follows: 20% on 1Q 2019, 20% on 2Q 2019, 20% on 3Q 2019, 20% on 4Q 2019, 20% on 1Q 2020
• Blocko business development team: 4% — Vests at the end of 2019
• Foundation team: 2.5% — Vesting schedule is as follows: 40% on TGE, 30% February 2019, 30% May 2019
• Foundation future Hires & long-term token incentives: 5% — Vesting over three years as follows: 20% in year 1, 30% in year 2, 50% in year 3
• Block & hosting partner rewards: 20% — Vesting period group-1: 5 years/vesting period group-2: 10 years (final details to be decided*)
• Key backers: 1.6% — Vesting over 15 months (20% 1Q2019/20% 2Q2019/20% 3Q2019/20% 4Q2019/20% 1Q2020)
• Community: 1.8% — Vesting Period (RewarDrop) 50% ten days after TGE, 50% 30 days after TGE (new programs with accelerated vesting were available).

*Aergo reserves the right to modify the Token Metrics in line with its evolving project needs / key changes will be shared publicly.

**Aergo is considering moving the vast majority of its foundation reserve into an independent, trusted and audited 3rd party escrow service to ensure these tokens are only released on a smaller scale and gradual basis over the next five (5) years.

Q: How many Aergo tokens were released to date — how many are planned to be released?*

• We released a total of 27,247,217 Aergo ERC20 tokens (i.e., 5.5% of the 500 million total) when we listed on our first exchange on 17 December 2018.
• We have since released a total of 34,798,968 Aergo ERC20 tokens to date (6.25% of the total supply).
• We plan to have no more than a maximum of 47,504,606 (i.e., 9.5% of the 500 million total) Aergo ERC20 tokens in circulation until the end of 1Q2019.

The circulating supply after that will be by the above schedules. It is expected that around 145,000,000 Aergo tokens will be in circulation by the end of 2019 (i.e., 29% of the 500 million total) and we estimate between 350,000,000–400,000,000 (i.e. 70–80% of the 500 million total) Aergo tokens will be in circulation by the end of 2021 (three years from first listing). We have since released a total of 34,798,968 Aergo ERC20 tokens to date (6.25% of the total supply).

We actually estimate that a total of 24,808,925 (i.e., just above 4% of total supply) of tokens are active currently (other tokens have not yet arrived in validated wallets)

We do hope these details provide an extra level of transparency to our community and other stakeholders. We also offer a detailed insight into how the Aergo project is planning to use its resources over the coming years. If you have any questions, please do not hesitate to join our community and ask your questions there.

We look forward to sharing more of the fascinating things we’ll be doing in the future with all of you.

Team Aergo

UPDATED: Jan 09, 2019