Upcoming bonus token distribution
As planned, ICO participants who have preserved the full amount of their LGO tokens will enjoy their first bonus in one week. We are taking this opportunity to describe the LGO token’s utility and how we will reward our loyal community members who have been supportive of this project.
LGO Token
The LGO token is an ERC-20 token designed and managed on the Ethereum blockchain. The specific rules of our smart contract are available on github. Currently, 181,415,052 LGO tokens are in circulation owned by various holders, advisors and founders. Over 36 million LGO tokens will be distributed to holders who have held all of their LGO tokens allocated during the ICO period.
Use of LGOs
As a reminder, our revenue will be generated through transaction fees payable in LGO tokens or any currencies supported by our platform. Fees paid in either fiat or crypto will be used to buy LGO tokens on the market. Through this process, we will continuously accumulate tokens and we plan to burn 25% of all tokens earned as fees. Our goal is to link the price of these tokens to the volume of transactions on the platform. This mechanism creates a continuous demand for LGO on the platform. The hope is that demand means consistent liquidity, so that holders can easily sell their tokens.
Currently, LGO tokens can be traded at: Idex, Air Swap and Bibox.
LGO Bonus
The total number of bonus token is 36,283,010.40 which is equal to 20% of the total number of tokens allocated at the ICO. The token bonuses will be issued on a semi-annual basis over a two year period until fully distributed to LGO holders. It represents a sum of 9,070,752.60 LGO tokens at each issuance. This bonus not only serves as an incentive for participants from the LGO token sale to continue to hold their tokens, but also as a symbol of our commitment to delivering on our promises.
It is important to note that the bonus will be distributed to holders whose balance of their Ethereum address never falls below their initial allocation plus the previous bonuses.
The bonus tokens will be prorated between LGO holders who have respected this rule. So, the 9,070,752.60 LGO token bonus will be divided and distributed based on the number of tokens held by each eligible holder.
To become eligible to receive this bonus every 6 months, holders must not sell their original LGO tokens or the bonus that has been received. After the bonuses have been fully distributed in two years’ time, LGO holders can freely trade their tokens without risking the loss of a bonus issuance.
For example, Alice purchased 100 LGO tokens during the ICO. She can buy and sell more tokens as long as her Ethereum address balance doesn’t fall below 100. In the case she receives five new tokens (amount calculated on a pro-rated basis) at the first bonus round, to be eligible for the next one, her balance should never drop below 105 LGOs. This would continue until the final bonus round. Alice would be eligible to receive new tokens during subsequent rounds, as long as her Ethereum address balance remains at or above her initial level plus previous bonus received. The Alice bonuses will always be calculated on the initial 100 LGOs.
In general, the rule is simple. In order to receive a bonus, your balance must remain at or above the initial amount allocated during the ICO plus new bonus received. In addition, it must remain at the same Ethereum address.
The first bonus issuance round is scheduled at 12AM on August 15th.
The 3 next dates for bonus distribution will be:
- Friday, February 15, 2019 12:00:00 AM
- Thursday, August 15, 2019 12:00:00 AM
- Saturday, February 15, 2020 12:00:00 AM
FAQ
We prioritize communications with our community and greatly appreciate the support they have shown for our project. We have recently received a number of questions about this, which include:
- If we sell the tokens we get from the holders bonus, do we lose the next holders bonus?
Yes. If your ethereum address balance falls below the initial allocation plus the amount of bonus received, you will not be eligible for future bonus allocations.
- If I bought more LGO tokens and moved them from my wallet, do I lose my bonus?
No. You are eligible for future bonuses, as long your Ethereum address balance remains equal or greater than the number of the initial tokens allocated plus additional bonus amounts received.
- I haven’t sold a single token but added more tokens to my balance after the ICO. That would not affect my bonus now would it?
No. The bonus distribution is always based on the initial token allocation. Adding more tokens in your address will not impact the bonus amount which you will receive.
- If a user decides to move the bonus tokens after the first bonus round, will s/he automatically lose their bonuses in the future?
Yes. LGO holders need to keep all their tokens (bonus included) in the initial address until the last bonus round.
Enjoy your bonus!
LGO Group’s mission is to build confidence in all stages of a crypto-asset’s life: from creation to sale, promotion, acquisition, storage and use. Our ambition is global. We want to enable large financial institutions with the ability to trade cryptocurrencies with complete confidence and trust, while providing retail investors an identical secure framework.
