You spoke; we listened

We took feedback from advisors and the community. They don’t all look like this

We put out our Token Sale documents (Business Plan, Technical Whitepaper, Token Sale Information Sheet) for review in early July to get feedback on what we were proposing. Reassuringly, most of what was said was extremely positive about both the level of detail and the transparency in what we had written.

As much as possible, we want to live by several principles:

1. Fairness to all stakeholders — Token Sale Supporters, HelloGold Foundation, HelloGold staff and HelloGold equity holders
2. Capped sale — to ensure that the funds raised are rational, allocated and useable
3. AUM based reward to align Supporter and HelloGold interests
4. KYC as a best practice
5. Wide distribution of tokens
6. Multiple rounds to ensure that the success of our future rounds is influenced by our ability to deliver project outcomes in line with token holders’ expectations

Over the past few months, comments from the community and our advisors have helped to shape some of the changes to the Token Sale structure:

1. Governance

• Clarified the role of the Foundation ((B) 2.2)* and the activities of Management ((B) 2.4)
• Create an Advisory committee for HGF, providing a depth of expertise on blockchain/cryptocurrency (Bo Shen and Prof. David Lee), technical (Andras Kristof), and governance (Herb Chain), with other members currently being confirmed. ((B) 2.3)

2. HGT allocation ((C)1.2)

• Separate Strategic Investors into a delineated and capped Pre-Sale
• Cap the Public Sale support at 10 ETH/wallet (person). Combined with a) is designed to remove “whales” from the Public Sale and ensure that there is a broad base of HGT holders to aid inclusion and also liquidity.
• Create a Staff allocation to ensure that the team were aligned with HGT holders interests — i.e. to grow AUM rather than just profitability (the equity incentive). This will be allocated to staff over a 3 year period and vested for a year after any distribution.

3. Reward GBT

• Increase the cap from 2 million grams of 99.99% investment grade gold (~$80million) to 3.8 million grams (~$152m). This is to improve the reward to Supporters, providing a 5–6x return (or 7–9x if gold price increases at 5+% as per average of the last 20 years) ((B) 3.2)
• AUM used as loan collateral is now included in the reward calculation (previously excluded). This will accelerate the speed at which the reward is distributed
• Clarified that GBT holders will automatically pay management fee on the gold vaulted in Singapore. This will be dealt with by the GBT smart contract

4. China

• To target the lage and engaged Chinese market, HelloGold has engaged ICOAge to sell directly to Chinese supporters. ICOAge has an allocation and will provide information, manage the registration (KYC) and sell tokens directly

Finally, due to exceptional demand from the pre-sale process, the allocations of HGT will be rebalanced once the pre-sale numbers are finalised. HGF remains committed to a capped Round 1 Public Sale and to a 3 Round structure (over multiple years).

These changes have been designed to improve the success of the Token Sale and to help HGF achieve its objectives of expanding the use of blockchain to the mass market and supporting financial inclusion. They are covered (including more detail) in the final release of the Token Sale Information Sheet

*References are to clauses in Token Sale Information Sheet