ICO Review - nimiq

Overview

Project Details

  • Role of token -Access rights
  • Token supply — 21 million NIM
  • Distributed in ICO — 10.5 million NET (1,050,000 NIM)
  • Emission rate 88% of total supply issued as mining rewards over 100 years
  • Blockchain Ethereum — (eventually migrate to Nimiq blokchain)
  • Consensus method — Proof of Work
  • Incorporation status- Plan to register soon
  • Team openness — Detailed bios, some have links to social media
  • Prototype An operational Betanet is already live

My View

This project is a great example of what is the future of Blockchain viz a viz World Wide Web is concerned and explores most of the cutting edge W3 technologies to demonstrate that even in a browser you can run a full Blockchain application which is very positive and open a lot of option for future DAPPs and DAO designs. By no means the project is perfect and there are many loose ends which they want to address in their Mainnet. There is a great chance that their design that they are using in testnet may not be relevant when they move to mainnet hence when you invest in NET please be sure that they are exchange tokens that will be exchanged to NIM (main tokens for nimq blockchain) by end of 2017 when main net goes live.

This is a pure blockchain exchange token which can be invested by anyone, please check their project on github and do a bit more due deligence before investing but for me this is a promising ICO portfolio for both retail and institutional investors alike.

Analysis

Value Proposition 
Nimiq is a frictionless peer-to-peer payment protocol for the World Wide Web. It is a third-generation Blockchain protocol combining elements of Bitcoin and Ethereum, streamlined for the web platform. And without a doubt, it is open source and fully decentralized.

Browsers are first-class citizens in the Nimiq distributed network. They are able to establish consensus with the network, and enable true peer-to-peer payments from within, all without a trusted third party. In comparison to conventional cryptocurrencies, this browser-first approach lowers barriers of entry by orders of magnitudes for developers, customers and merchants.

Platform

The Nimq Blockchain has the below key componenets.

  • Network for establishing P2P connections.
  • Storage for persistent keys and Blockchain data.
  • Crypto for hashing, signing and verifying.

In addition, the protocol is streamlined for the constraints of the web:

  • Compression of Blockchain data to sync within seconds instead of hours.
  • Instant and scalable transactions so over-the-counter payments are practical.
  • Simplicity means we do only one thing and we do it better than anyone else: payments.
  • Blockchain Parameters streamlined for our browser-first approach.
  • Cross-Chain Compatibility with other Blockchains such as Ethereum for advanced smart contract features.

Key Highlights

  • There are two types of nodes in the Nimiq network: Backbone Nodes and 
    Browser Nodes. Both types use the same isomorphic JavaScript code 
    base.
  • To connect to the network, they establish a WebSocket connection to 
    at least one Backbone Node.
  • Once they have established their first connection, they start to 
    establish browser-to-browser connections using the
  • Backbone Node as signaling server. Browser Nodes can also act as 
    signaling server for further browser-to-browser connections.

Limitations which can be a concern highlighted in their Whitepaper

  • Depending on the user’s NAT configuration, direct peer-to-peer connections may not be established.
  • Powerful browser APIs are restricted to secure origins.
  • Depending on the user’s firewall configuration, connections to non-standard ports may not be established.
  • The crypto in the preliminary beta testnet is based on the WebCrypto APIs to reach near native performance. The WebCrypto API is not very rich and leads to too many sub-optimal design decisions.
  • Proof-of-Work Algorithm: We use SHA-256, because it is the only hash function supported by WebCrypto, and is sufficient for our first public testnet.
  • Digital Signing Algorithm: We use the NIST curve P-256, because it is the only curve supported by WebCrypto.

Token Sale

The Token Sale starts June 28 ~1PM UTC and ends July 26 ~1PM UTC. The Token Sale ends early if either the Contribution or Creation Cap are reached. The exact time is determined from a particular block number in the Ethereum blockchain.

Creation Cap 
10’500’000 NET

Up to 10’500’000 NET (Nimiq Exchange Tokens) will be created in the token sale corresponding to 1’050’000 NIM (future Nimiq Mainnet Tokens) which account for ~25% of circulating supply after one year and 5% of total final supply after ~100 years.

If the cap is reached, the crowdsale ends and no more transfers of ETH to the smart contract will be accepted.

Contribution Cap

60’000 ETH

The Contribution Cap is 60’000 ETH for simplicity, transparency and security. If the cap is reached, the crowdsale ends and no more transfers of ETH to the smart contract will be accepted.

Creation Rate Until 07/12

1 ETH = 175 NET

This is the NET Creation Rate of the first two weeks. Contributors receive a 28.6% discount compared to the second two weeks. The exact time for the price change at week two is determined by reaching a particular block number in the Ethereum blockchain on July 12 around 1PM UTC.

Creation Rate 07/12–26

1 ETH = 125 NET

This is the NET Creation Rate of the second two weeks. The exact time for the price change at week two is determined by reaching a particular block number in the Ethereum blockchain on July 12 around 1PM UTC.

Exchange Rate 
10 NET = 1 NIM

The Nimiq Exchange Token (NET) is a standard ERC20 token on the Ethereum Blockchain issued by a smart contract. They can be exchanged to Nimiq (NIM) — the currency of the Nimiq Blockchain — at the exchange rate of 1 NIM = 10 NET before the Nimiq Mainnet launch. With that you can be part of Nimiq Mainnet from day one.

Final Nimiq Supply 
21 Million NIM

The future Nimiq Mainnet is designed for a total final supply of 21 Million NIM (modeled after Bitcoin), with the following distribution: 
88% Miners Reward (issued over ~100 years) 
5% Token Sale Contributors (no vesting, ~25% of circulating supply at year 1) 
2.5% Long-term Foundation Endowment (10 year vesting) 
2% Good Cause Partnerships and Sponsorships (10 year vesting) 
1.5% Early Contributors (6 month vesting) 
1% Creators (3 year vesting)

The Mainnet implementation may switch from using Proof-of-Work to Proof-of-Stake.

In that case the total supply cap of 21 Million could be reduced. This would not reduce the amount of NIM held by Token Sale Contributors, so that it would be beneficial to Token Sale Contributors.

How to Buy

https://nimiq.com/token-sale/contract/

Reference