IOV Token Sale: Primary Bid
How do I purchase IOV Tokens in the Public Sale?
To participate in the public sale of the IOV token, you will need to send a payment in ETH to the address we will provide ahead of the sale. This constitutes your Primary Bid for the IOV Token public sale.
The price of the IOV Token is 0.10EUR. Based on the current exchange rate, 1 ETH = 1,710 IOV tokens. By way of example, here’s how much the following contributions will earn.
10 ETH = 17,100 IOV
50 ETH = 85,500 IOV
100 ETH = 171,000 IOV.
This ratio will be fixed at the time of the auction to determine your requested allocation. If you want to check it out on the day itself, you can check the ETH/EUR live price.
The maximum amount you can request is 10,000,000 IOV tokens. You can request it in batches but, as you will see, speed is important and you probably want to do it in one shot.
You will get your full requested amount provided we are not oversubscribed. In the event of oversubscription, you’ll receive a partial amount. The allocation process is explained below.
Once I’ve placed my bid, what happens?
IOV will collect everyone’s ETH payment over the course of a few days (we will announce the date in advance) and then will calculate everyone’s allocation according to the rules listed below.
As mentioned, in the event that we are not oversubscribed, you receive 100% of your requested allocation.
If we are oversubscribed, your allocation might be less than you wanted. In this case, you get refunded the corresponding amount from your payment. You only pay for the IOV tokens that you are allocated.
Ok, sounds good — but what is the allocation process in the event of an oversubscription?
In case of oversubscription, there are three stages to the process of allocating all the IOV tokens available during the public sale:
Stage 1: Fairness
50% of all IOV tokens will be split between all contributors proportional to their allocation requested. At this stage, you will be allocated at most 50% of your requested allocation and less than 5% if we are more than 10x oversubscribed.
Stage 2: Speed
Once the initial 50% has been allocated, 25% of the IOV tokens are allocated to the fastest participants. We’ll be monitoring the time of each bidder’s payment during the public sale process, and will allocate bonus tokens to those contributors that are faster than the average time to contribute.
If you are the fastest contributor, you can multiply your Stage 1 token allocation by up to 2.66x without any additional investment. A detailed breakdown of our speed allocation can be found later in this post (table T1 below).
The faster you are to contribute, the more you will receive at this stage.
If you are slower than average, you don’t get anything at this stage.
Stage 3: Bonus
This is for Level 2 participants who make a bonus bid. If all the tokens are not bid for at that stage, you will receive a part of the tokens leftover. You can ignore the details of it for now (or go straight to the next post on Level 2 “Bonus Bid” ).
Ok, and how much do I get allocated then?
You can see in the table below how much you get from your Primary Bid depending on the Public Sale oversubscription (left) and your contribution speed ranking (top). These are minimum amounts. You might get additional tokens from stage 3 (depending on other participants’ bonus bids).
T1: Table of minimum allocation for Level 1 participants
Oversubscription (left) \ Stage 2 Speed ranking (top)
For example, if we are 2x oversubscribed (200% on the left) and your contribution speed ranks between 21% and 30% (21% on the top), then you will receive 50% of your requested allocation — and be refunded 50% of your Primary Bid.
You can see the equations of this table’s calculations here.
So what is my best strategy to maximize my allocation?
Being fast gives you the best possible chance to secure your entire request. However, speed is only relative to other contributions — the more contributions after yours, the more tokens you will receive.
So good luck — and be fast!
And if you are interested in securing a higher allocation at stage 3, you can read the Level 2 “Bonus Bid” mechanism here.
Example of allocation calculation — Rounded Overview
In this example, let’s assume we are 200% oversubscribed, meaning we have twice as much demand for tokens than we are offering in the sale. Let’s also assume you had sent an allocation request for 100 IOV tokens. From the table above, you see that you will get between 25 and 67 IOV Tokens. Here is how:
At Stage 1 (Fairness), you get 25 IOV tokens. 50% of all the tokens are distributed so that all contributors get at least a minimum allocation. As the example takes a 2x oversubscription, that means that you must share this 50% pool with twice as many people and you get 25 of your requested 100 IOV tokens.
At Stage 2 (Speed), the two extreme cases are:
- Slow: if you are slower than average, you get 0 IOV tokens in this stage. At Stage 3, you might get up to +15 IOV tokens depending on Level 2 participants’ bids.
Your final guaranteed allocation is 25 IOV tokens and you are refunded at most 75% of your primary bid. You might get up to 40 IOV tokens and 60% refund if you are lucky at stage 3.
- Fast: if you are within the 10% fastest, you get +42 IOV tokens. At Stage 3, you might get up to +7 IOV tokens depending on Level 2 participants’ bids.
Your final guaranteed allocation is 67 IOV tokens and you are refunded at most 33% of your primary bid. You might get up to 74 IOV tokens and 26% refund if you are lucky at stage 3.
In this example, even if we are 2x oversubscribed, if you act fast, you can get at least 67% of your requested allocation. If you are slow, you are only guaranteed to get 25%.
All the allocation cases depending on oversubscription and speed ranking are in the table T1 above.
We describe the mechanism for the Level 2 “Bonus Bid” here.
More examples
If Alice sends 100 ETH and the public sale is 1.5x oversubscribed and her speed rank is in the top 15% (15% of contributions had arrived before hers), then she will receive at least 78% of her requested allocation and will be refunded for the unallocated amount.
If Bob sends 50 ETH and the public sale is 1.1x oversubscribed and his speed rank is in the top 76% (76% of contributions had arrived before his), then he will receive at least 45% of his requested allocation and will be refunded for the unallocated amount.
We are looking forward to your contributions!
If you would like to participate in Level 2: Bonus Bid, please read the next part of our guide here.
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