Getline Whitepaper Article Series: GET Tokens And Their Distribution & Crowdsale

We’re pleased to introduce the fourth of a series of articles based on our whitepaper. The purpose of this article series is to run through the whitepaper in layman’s terms, and make it as simple as possible to read and understand the details of what the Getline Network is, how we’ll function, how we’re structured, and how we plan to move ahead. These articles will be shortened & simplified versions of the whitepaper content. See the whitepaper for the full content.

Just as a short intro, Getline is disrupting a $1 trillion market through blockchain technology.

The Getline Network is a peer-to-peer lending market on the Ethereum blockchain. The platform will allow for instant and direct lending in cryptocurrencies. Getline will initiate a unique architecture for a credit risk prediction market to make lending safer for lenders and more accessible for borrowers. We aim to revolutionize the peer-to-peer lending market and fully decentralize it, making it easily accessible, safe, and compliant to serve as an infrastructure for a new kind of global financial system. For those of you who don’t know, peer-to-peer (or P2P) refers to the ability of two individuals or entities, to exchange value with each other directly, without the need of a middleman.

All Articles:
1st Article — Introduction, Aim, & Our Idea
2nd Article — Credit Risk Management & Loan Lifecycles
3rd Article — Competition & Challenges
4th Article — GET Tokens And Their Distribution & Crowdsale

In this fourth article of the series, we’ll cover sections 8–9, which are:

*8 GET tokens

*8.1 Introduction

*8.2 GET token functions

*8.2.1 Loans’ collateralization in GET

*8.2.2 ARAs’ reserve

*8.2.3 Network Trust Fee

*8.2.4 Network value capturing

*9 GET tokens distribution and crowdsale

*9.1 GET tokens distribution

*9.2 GET crowdsale

*9.3 Crowdsale proceedings distribution

*9.3.1 Reverse ICO

*9.4 Allocation of GetLine Company’s funds

Let’s get started…

8 GET Tokens

8.1 Introduction

Our native token is called GET. GET is meant to bootstrap the product, & capture the value of the network. GET will stabilize the Getline Network, helping to prevent fraud, & allow for more trust between participants. The GET token will be an ERC20 token issued during the crowdsale.

8.2 GET Token Functions

8.2.1 Loans’ Collateralization In GET

Getline loan contracts will only accept GET tokens as collateral. Collateral is one of the central features of the Getline Network, enabling new participants with little to no credit history to gain trust by taking & paying back collateralized loans. Higher collateral results in a better default rate prediction & lenders’ willingness to fund loans.

A certain amount of GET is locked up in the loan’s Smart Contract, & will be sent to the lender(s) in case of a default, but will be returned to the borrower after a successful loan repayment. As the network’s participants build up their creditworthiness, they might be able to leverage the GET tokens, taking higher loans with the same collateral value. The minimal collateral in the network will be 5% of the borrowed amount.

8.2.2 ARAs’ Reserve

To incentivise ARAs to give better default rate predictions, they will be required to stack up GET tokens, and give a percentage of their GET reserves to the lender(s) in case of a default. Failure to do so will result in the delisting of loans scored by that ARA from the Getline browser.

8.2.3 Network Trust Fee

The Network Trust Fee (in GET) helps ensure a trustworthy metascore for ARAs, by making it economically unfeasible to manipulate their metascore. The NTF burns a percentage of the collateral of each loan, destroying GET tokens irreversibly & redistributing their value across the network’s participants. No other fees will apply to participants for loan issuance.

8.2.4 Network Value Capturing

GET are designed to capture the value of the network, encourage early adoption, & support the growth of the Getline community. If GET’s value rises, the entire network’s value rises, as does the ability to borrow for all participants. It’s comparable to Ethereum & Ether, where successful solutions that use ETH appreciate Ether’s value, benefiting the whole Ethereum network.

9 GET Tokens Distribution And Crowdsale

The Getline Token Genesis Contract will mint a total of 100,000,000 ERC20 GET tokens on the Ethereum blockchain. We don’t plan to mint any more tokens on the Ethereum Network thereafter.

9.1 GET Tokens Distribution

1. 50% of GET tokens will be distributed to crowdsale participants — future Getline Network users who will need them to use the system & obtain loans or become ARAs.
2. 10% of GET tokens will stay in the company for an Employee Token Ownership Plan, to be split among current & future team members. The tokens will be vested for about two years with a six month cliff.
3. 4% of GET tokens will be transferred directly to Kacper Wikieł, CEO & founder of Getline.in & the Getline Network.
4. 6% of GET tokens will be distributed among early contributors & advisers of the project.
5. 20% of GET tokens will be retained by the Getline Company. 80% of the Getline Company’s tokens will be vested over the period of two years.
6. 10% of GET tokens will be split among early Getline investors who fund early development.

9.3 Crowdsale Proceedings Distribution

80% of crowdsale proceedings will fund the Getline Company, the organization set up to develop the Getline Network. This money will secure funding for future improvements, business developments, marketing, & other expenses needed to grow the network. The other 20% of the proceedings will be transferred to the initial founders of a centralised version of Getline.

9.3.1 Reverse ICO

The crowdsale will enable the “reverse ICO” of Getline.in, where Getline.in will be dissolved and its shareholders will get paid back for the company, its intellectual property, & its user base with 20% of the crowdsale proceedings. Thus, Getline.in will dissolve its operations and will reestablish itself on-chain, in a new & decentralized way.

9.4 Allocation Of Getline Company’s Funds

The Getline Company will be funded with 20% of issued GET tokens & 80% of the GET tokens’ crowdsale proceedings. All these funds will be used to further develop the Getline Network.

1. 10% of funds will be spent on community grants, partnerships, & bounties — for example, they may be used to help cover the expenses of early integration of the Getline Network with other services, especially those based on cryptographic technologies. We also plan to fund a security bounty program to ensure the highest standards of the security and trustworthiness of the network.
2. 40% of funds will cover expenses of further software development — although the Getline Network will be a functional product at the time of the crowdsale, we want it to be constantly improved and developed. Those funds will cover software engineers’ & other employees’ payrolls, and also the pay for outside contractors.
3. 17% of funds will be used to fund legal expenses — the project is interwoven with many local laws and is spread across multiple jurisdictions. We expect a lot of legal expenses associated with operating the Getline Company, & unforeseen legal costs necessary to resolve matters that could pose a threat to the continued efforts of the Getline Company and operations of the Getline Network;
4. 12% will be spent on operational expenses, such as office space, travels, support, recruiting, managing the company, establishing subsidiaries in other countries, etc.
5. 3% will be reserved for unexpected expenses, just in case something truly unforeseeable happens.
6. 18% of the money will be spent on marketing & business development in order to grow the network.

We hope you enjoyed this article, keep an eye out for the next article in our series,

Have a great day!

The Getline Network team.

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