CYPHERIUM: VALUATION & ADJUSTED TOKEN METRICS EXPLAINED
We always keep our ears open to the voices of our community members, and the most recent feedback was reasonable regarding our valuation and final token metrics. At Cypherium, we care deeply about keeping our public community and especially our valued active participants informed on the same page with the rest of the internal team. Therefore, we have insisted on delivering all updates as transparent and promptly as possible.
MAINNET VALUATION EXPLAINED
Many have noticed that our initial mainnet circulating supply (Presale + Public sale) adds up to 800,000,000 CPH. Some may jump to the conclusion that with this supply figure, multiplied by the initial price of our public CPH sale, 0.25 USDT, gives us a market cap of around $200,000,000. This is inaccurate, due to the following reasons:
- CPH tokens at mainnet launch will follow a 6-month vesting schedule. Consequently on Day 1 at our mainnet launch, we will have 100 million CPH tokens in circulation, NOT 800 million CPH tokens.
2. As shown above, a maximum of 200 million CPH tokens has been made available for the Public Sale. In other words, in the case of the final sale not reaching this cap amount, the responding unsold tokens will be distributed to the Cypherium Ecosystem Development Fund. In this scenario, naturally the total amount of tokens in circulation at mainnet launch will be affected by the same exact amount left from the public sale.
3. CPH token price will be determined by the market based on organic supply and demand, and not on a fixed price at the time of mainnet launch.
With the above pointers in mind, the correct valuation of the project at mainnet launch with our initial token distribution when applying the public sale price of $0.25 per CPH would become $25 million USD. It is important to acknowledge that this is before any exchange listings where two of the largest international markets may now have the opportunity to purchase CPH tokens. For a project of our size in accomplishments, given all the partnerships, use cases, and contracts we have already secured, this figure is an extremely humble valuation — one that allows our project and its community myriad of room for growth over the course of its first two quarters.
TOKEN METRICS EXPLAINED
With our recent Public Sale Announcement, we communicated the following:
1) 1 billion CPH tokens will be burnt unconditionally
2) Additionally, for every 5 million USDT raised during the Public Sale, 100 million CPH tokens will be burnt from the total network supply until a maximum total of 1 billion CPH tokens are burnt.
3) Due to market conditions, Phase 2 sale will not be conducted. Instead, the 100 million CPH originally assigned for Phase 2 sale will be re-allocated to the Cypherium Ecosystem Development Fund. The total circulating supply six months after mainnet launch will be reduced to 800 million CPH from the previous 900 million CPH.
Therefore, our token allocation after 10 years would be as follows:
Providing a vesting schedule and revising our token metrics has been an essential step to ensure huge success in the rollout strategy. We believe our community stands with us in these high-level decisions and acknowledge that they were made for the best interest of our members and the long term trajectory for a strong finish of the project.
Onwards,
The Cypherium Team
