The right thing to do
We started working on Betoken 1 year and 6 months ago. We invested a significant amount of time and money to build Betoken. During those 18 months of hard work, we’ve crossed important milestones:
1. Building an active community of fund managers;
2. Securing strong partnerships with leading companies in the industry;
3. Auditing Betoken’s smart contracts with 3 independent security experts.
The journey wasn’t always rosy when you’re a small team. But thanks to the Betoken community, we continued working on our vision to make it a reality on Mainnet.
We solved a lot of challenges. Though one is remaining and we see it as a big risk for the success of Betoken in the short term.
As you may know, the Betoken protocol quantifies talent by allocating units of reputation to each fund manager. It’s denominated in Kairo tokens. The amount of Kairo owned determines the quantity of Betoken fund’s money you can control. Today, 70+ addresses have the power to influence how the Betoken’s money is invested on Rinkeby testnet. But 6 addresses were able to gain a huge quantity of Kairo in part because of an imperfect pricing feed on Rinkeby. It’s our fault, not theirs.
3 huge risks for the success of Betoken on Mainnet
Though, those testnet Kairo will be transferred on Mainnet. So we’ll have the same distribution of power on Mainnet than on Rinkeby.
An important spread between top managers and small managers’ KRO balance will create 3 huge risks for the success of Betoken on Mainnet.
First
The top-6 managers would control more than 70% of the money. Not a healthy situation when their trading skills under a real crypto market environment stay unproven until now. We need to keep in mind that Betoken’s ROI is a key performance indicator to attract new investors. Without that, no money, no commission, no Betoken.
Secondly
managers with a small amount of Kairo won’t find any incentives to continue managing because the vast majority of the commissions will flow to the top-6 managers.
Thirdly
New managers joining Betoken won’t find any incentives if they think that it’ll take too much time to beat the top managers.
This situation represents a big risk for Betoken’s retention and acquisition growth. Our first months on Mainnet will be crucial and we can’t mess up with that.
For those reasons and because we want a fair launch for everyone, we decided the following. The top-6 addresses in our managers ranking will be able to transfer on Mainnet the following amount of KRO:
1. 1,000 KRO
2. 1,000 KRO
3. 1,000 KRO
4. 1,000 KRO
5. 900 KRO
6. 750 KRO
The other managers won’t be affected.
