How is MIX’s crowdfund mechanism different from an ICO?
We are currently in somewhat of an ICO boom with many blockchain startups launching new tokens.
These ICOs generally work in the following way:
- Assemble some big names
- Write a whitepaper
- Create a nice website
- Promote ICO at blockchain events and on social media
- Receive 10m USD in 30 mins
- Spend a year or two building the product
With MIX I decided to go about it in a different way. The crowdfund lasts for the entire duration of the initial development of MIX (2000 days). 5 years worth of mining will be released by the crowdfund smart contract over this period at an ever-decreasing rate. This is slightly less than the initial distribution of Ethereum.
The blockchain was activated on Thursday 27th April 2017 09:15:23 AM (UTC).
With continuous crowdfunding instead of pre-funding it isn’t necessary to hype the project before you build it. You just start building and crowdfund revenue will increase as interest grows. This revenue can then be invested to develop the product more rapidly, thus further increasing the value of the token.
In this way the founders are financially incentivized to build the product and re-invest crowdfund revenue.
When publishing content on the MIX blockchain it will be necessary to pay a small amount of MIX in transaction and anti-spam fees. While the hash rate remains low it will be possible to publish something, then undo the publication with a lot of mining power. This will not be possible once the hash rate increases.
To get hold of some MIX at the moment you can either mine it yourself or purchase it.
