CTSI Economy and Mine Reserve Transparency Report — October, 2020
In anticipation of the next foundation reserve unlock of Cartesi Token (CTSI) set for October 23rd, 2020, we’re pleased to give an official update on the Cartesi Foundation’s governance, operations and how CTSI tokens are allocated in succession to our first transparency report.
The upcoming unlock will be the last of two Cartesi Foundation unlocks in 2020, adding to the 12.3% of the CTSI supply held and utilized since July 23, 2020 unlock and completion of the Launchpad sale on Binance.
As a reminder and for transparency sake, anyone can view the current holdings of Cartesi Foundation wallet with the majority of holdings already allotted to market-making:
The Current State of CTSI
The information provided below is taken as of October 5, 2020 and is dynamic in nature. Therefore, information presented may not reflect accurate estimations at time of reading. For up to date information, please reference the CTSI page on Coinmarketcap or Coingecko.
Total Supply: 1,000,000,000
Current Circulating Supply (October 5, 2020): 198,403,548 CTSI
Current Undiluted Valuation (October 5, 2020): $7,994,064 USD
Total Diluted Valuation (October 5, 2020): $40,291,940 USD
Initial CTSI Public-Sale Price: $0.015
Current CTSI Price (October 5, 2020): $0.04 USD
The Current CTSI Allocation:
As denoted previously, 12.3% of the total supply has already been unlocked and held by the Cartesi team. The foundation reserve tokens have gone to a variety of important endeavours as previously outlined. The CTSI that has been spent so far is summarized below:
- Exchanges: 1,600,489.15 CTSI
- Employment and Community Operations: 1,028,093.10 CTSI
- Legal, Business Operations, and R&D: 11,337,586.33 CTSI
- Partnerships: 25,000,000 CTSI
- Marketing: 6,967,808.80 CTSI
- Market Making: 62,664,222.68 CTSI
October 23rd, 2020 Unlock
In accordance with information that has been communicated previously, the second Cartesi Foundation unlock will occur in the amount of 31,900,000 CTSI (3.19%) of the total supply on October 23rd, 2020.
An exceptional quantity of future endeavors remains that will vastly shape Cartesi’s economy and development ecosystem as a whole.
Where does the funding go?
- Research and development of Cartesi’s technology
- Marketing and community-based objectives
- Legal expenses
- Development grants
Internal governance consensus is reached by the Cartesi Foundation before devoting or expending CTSI to any event. The Cartesi team holds all its funds in crypto, stablecoins, and fiat. Funds are stored with cold storage multi-signature wallets and USD bank accounts. Moving or using funds requires the approval of at least 3 out of the 5 holders.
The Foundation reserve unlocks are vital for the development of Cartesi’s tech, bootstrapping its ecosystem, and for the operations of the Foundation itself.
No entity or token holder is more interested in the health of CTSI’s economy than the Foundation itself for its entire existence and longevity. The Foundation liquidates only the amounts deemed necessary, remaining careful not to disturb the secondary markets of CTSI.
Mining Reserve Unlock
The Cartesi Foundation has reserved 25% of the total supply of CTSI tokens for our mining reserve. On October 10, 2020 the initial locked mining reserve contract which has held the mining reserve tokens up until now, becomes available in anticipation of our “Mining on Mainnet” milestone coming this quarter.
In a fully transparent manner, we will be re-locking all 25% of the mining reserve into a new contract we’ve designed that allows for transparent withdrawals at certain time intervals. These withdrawals will then be placed into the mining system (prize manager) to be further distributed to users who are staking CTSI.
The contract is called “DelayedWithdraw.sol.” DelayedWithdraw.sol is a centralized contract (owned by the Cartesi Foundation) that implements a two-step withdrawal process for an ERC20 token, the contract has been fully audited by SlowMist.
In DelayedWithdraw.sol, the owner of the contract can start a withdrawal request and choose the beneficiary of that withdrawal. The withdrawal does not happen instantly, however. There is a delay of 7 days from when a withdrawal request is created to when the tokens can actually be transferred by calling the finalizeWithdraw() function. Every new withdrawal request overrides the last one and resets the delay. The owner can also cancel the withdraw, with the cancelWithdraw() function.
Creating a withdrawal request, finalizing or canceling it are actions that can only be performed by the owner of the contract, which at first is the address that deployed it. The ownership can be transferred and renounced.
All withdrawals from the new contract (DelayedWithdraw.sol) will be placed into the prize manager contract for our staking and mining system on Mainnet.
The transfer of the tokens from the original mining reserve contract to the DelayedWithdraw contract was completed on October 17, 2020 as confirmed here: https://etherscan.io/tx/0x4d8636a5c0660fb6d73cd731db2c25abe5194797695951e35470b9b717c4eb4e
Unlock Forecast for 2021
Each successive Cartesi foundation unlock will occur on a quarterly basis (every 3 months), occurring on the 23rd day of the new quarter. The upcoming unlock on October 23rd, 2020 is the last foundation unlock for 2020. Combined with the July 23rd, 2020 unlock, the Cartesi Foundation has acquired 6.38% of the total CTSI supply through foundation unlocks occurring after Binance Launchpad.
These Cartesi Foundation tokens will bring the grand total to 15.49% CTSI supply unlocked for the Cartesi Foundation since the IEO on Binance Launchpad.
The token releases remain consistent with our current report valuations and are obtained upon each corresponding internal milestone achieved. The Cartesi Foundation constructed these unlocks to be steady while remaining relatively small and consistent, in contrast to the majority of other cryptocurrency and blockchain teams and preceding Binance Launchpad cryptocurrencies.
In total, 40.22% of the total CTSI supply is reserved for the Cartesi foundation and will be fully vested by July 23rd, 2023.
Predicted Supply Curve
The following chart represents the number and breakdown of all CTSI tokens that are to be released into circulation on a monthly basis. Token inflation for staking rewards will be revealed in the future, which is yet to be finalized, and not presented in the following chart, however, we have released the CTSI Macroeconomy article for further reading in the meantime. Mining Reserve tokens will continue to be distributed after April 2024.
The current state of the CTSI distribution curve:
Binance Launchpad Sale tokens comprise 10.00% of the total token supply.
- This has been 100% allocated
Seed Sale tokens comprise 2.00% of the total token supply.
- The first unlock (0.29%) will occur in April 2021.
- Unlocks will occur on a quarterly basis thereafter
Private Sale tokens comprise 5.00% of the total token supply.
- The first unlock (0.56%) will occur in April 2021
- Fully vested by April 2023
Strategic Sale tokens comprise 0.67% of the total token supply.
- 0.34% has been allocated through two unlocks
- The third unlock (0.17%) will be allocated in December 2020
- The final unlock (0.16) will occur in April 2021
Team tokens comprise 15.00% of the total token supply.
- The first unlock (2.14%) will occur in April 2021
- Unlocks will occur twice a year, in the amount of 2.14%
Advisors tokens comprise 2.11% of the total token supply.
- The first unlock (0.71%) will occur in April 2021
- Unlocks will occur twice a year, in the amount of 0.71%
Foundation Reserve tokens comprise 40.22% of the total token supply.
- 3.19% unlocked quarterly until 2023
Mining Reserve tokens comprise 25.00% of the total token supply.
- Please see the “Mining Reserve Unlock” section above
Upcoming Next
The Cartesi Foundation, executive team, and all employees remain committed to the success and health of Cartesi and business in 20+ strategic regions worldwide. The team’s priority objectives include continual growth and the prospects of being at the forefront of a new technological revolution.
During this quarter, we’ll be presenting our Mining on Mainnet launch, which means that you as a miner, running the reference software will be able to participate in the PoS system (required for the Cartesi Side Chain) and earn CTSI rewards from the mine reserve, whenever you are given the right to create the next block. Please note that the Cartesi Side Chain is a complex project and it will keep being developed throughout 2021 (see the roadmap). The Cartesi Side Chain is being created to provide high throughput and temporary storage for Cartesi DApp data. As mentioned in our macroeconomy article, the staking rights system will launch in 2021.
About the Cartesi Foundation
The Cartesi foundation is the coalition of the co-founders, partners, and influential members to deliver exceptional technical impact on bridging mainstream software with blockchain. Composed of leading scientific minds, thinkers, leaders, and veterans, we remain at the forefront of a blockchain interconnectivity revolution with the plethora of millions of open-source software on Linux.
The Cartesi Foundation is an entity that is committed to bringing mainstream scalability and convenience to developers and users of decentralized applications.
Cartesi’s Ecosystem Links:
Website: https://cartesi.io
Twitter: https://twitter.com/cartesiproject
Telegram: https://t.me/cartesiproject
Discord: https://discordapp.com/invite/Pt2NrnS
GitHub: https://github.com/cartesi
