Regen Network Closes Private Token Sale Round; Raises $10.5 Million

Introduction

Regen Network Development, Inc just completely sold out Phase 3 of our private token sale. We raised just over $10.5 million from 216 unique investors. This raise, along with the prior sale to Microsoft, puts Regen Network squarely in the position as the most exciting and promising environmental blockchain project to date. Regen Ledger and REGEN token are important components of a climate-finance tech-stack that works for people and the planet.

The sale was oversubscribed and we continue to add to the growing list of interested participants for the upcoming public sale. (If you would like to add your name to that list, sign up here).

This blog focuses on the details of the token sale as a whole, giving transparency to the community, just on the heels of the historic launch of the Regen Ledger Mainnet on April 15, 2021.

Token distribution at mainnet launch

This section gives more details of the REGEN Token sale, an overview of the pools, allocations, and timelines as they currently exist. Regen Network Development, Inc oversaw the sale and the secure and successful launch.

Total Supply and Market Cap

The total supply at mainnet launch was 100 million tokens.

It’s important to note that 35% of this supply is allocated toward Regen Foundation and the Community Staking DAOs and will be permanently locked and though these tokens give the DAOs the right to participate in governance, can be staked, and earn block rewards, when calculating circulating supply and market cap, they should be excluded as they cannot ever be traded or sold.

The prices for the tokens in the most recent round of the private sale were $0.46 per token with the three-year lock-up terms and $0.63 per token with the one-year lock-up terms. If we apply the $0.63 price multiplied by the 65 million implied circulating supply (not counting inflation mechanism) we arrive at a current market cap of $40.95 million, which gives the network a huge amount of room to grow.

Token Pools

42 Million Public Sale Allocation

Regen Network Development, Inc carried out the execution of the public sale of REGEN tokens, through two simultaneous sales, one which was conducted under Reg D regulations for US accredited investors only, and the other in accordance with Reg S regulations for non-US persons only. All SAFTs are considered unregistered securities and have a moratorium on their sale for a minimum of 12 months after the signing of the SAFT.

The sale was conducted through the following rounds and terms.

Friends and Family Round, — 6,882,568 tokens sold

• Dates: 4/24/2018–5/14/2019
• Lock up terms: 1-year lockup — all fully vested at mainnet (except for one participant who agreed to a 3-year lock and so has about a year to go).
• Price — variable, but most at $0.10 per token.
• 12 unique investors

Phase 1 Private Sale — 5,775,029 tokens sold

• Dated: 5/15/2019–12/31/2019
• Lock up terms: All but one participant chose the 3-year lock-up
• Price: $0.21 (3-year lock) and $0.49 (1-year lock)
• 19 unique investors — 2 follow-on investors adding to their earlier allocation

Phase 2 Private Sale, — 2,101,913 tokens sold

• Dated: 3/01/2020–9/30/2020
• Lock up terms: All but one participant chose the 3-year lock-up
• Price: $0.35 (3-year lock) and $0.56 (1-year lock)
• 15 unique investors

Phase 3 Private Sale — 22,303,521 tokens sold

Q4 2020 — Q1 2021 (Just closed last week)

• Price $0.46 (three-year lock) and $0.63 (1-year lock)
• mixed between 3-year lock-up and 1-year lock-up
• 22,303,521 total allocation
• 216 unique investors and 13 follow-on investors adding to their earlier allocation
• One Small Planet Capital was the lead investor on the round.

A brief note about lock-ups. Locked tokens can still stake, receive block rewards and fees, and participate in governance. They simply cannot be transferred according to the lockup terms below:

1-year lockup: The token holder receives all tokens at mainnet and can stake, but no transfer until 12 months after signing of the SAFT, at which time all tokens are unlocked

3-year lockup — The token holder receives all tokens at mainnet and can stake, but tokens are locked for 12 months after the signing of the SAFT, at which point tokens begin to unlock monthly until the end of 36 months.

Public sale

4 million REGEN Tokens have been allocated for the public sale, which is anticipated to take place within the next 2–3 months and will provide liquidity and price discovery so that community can buy and sell REGEN tokens as needed. Regen Network Development, Inc is collecting a list of those who would like to be notified about the sale. To be added to that list, go here.

23 Million Non-Sale Allocation

These tokens have been allocated to the founding team, advisors, and were used to bootstrap the convening of the community.

15 million — Regen Network Development, Inc

• Half of this will be company discretionary funds, aligning the company with the health of the network for the long run.
• These tokens are locked up with the 3-year vesting schedule that begins to unlock one year after mainnet and completes at the end of three years after mainnet.
• Half has been allocated to a team member compensation pool. At the time of launch, 5,325,948 are being directly distributed to the individual team members and advisors at genesis and 2,174,052 remain in the pool as unvested team tokens and compensation for future hires.
• Almost all of these tokens are locked on a 3-year vesting schedule.

5 million — Network Bootstrapping Fund

• 1,760,535 tokens have been distributed to validators via incentivized testnets and token contracts.
• 1,239,465 will be stewarded by RND at launch to continue swift deployment of tokens for community building, to use for hackathons, bounties, incentivized testnets, and token agreements for development work from community members.

2 million tokens allocated to the community spend pool.

• The community spend pool accrues 2% of the total network block rewards into an account that can be distributed by a governance vote. You can propose ideas for how to spend these funds at our discourse forum.
• We will follow the same pattern as the Cosmos Hub community spend pool.

3 million — ATOM holder airdrop

• RND Inc stewards the 3% of the token allocation earmarked for an ATOM holder airdrop in order to execute a compliant stack-lock or warlock airdrop. We may socialize other options for this allocation with the community and will either execute to the letter of what is stated in the whitepaper (a compliant airdrop) or follow community wishes.

35 million (non-tradeable) REGEN tokens — Community Staking Pool and Regen Foundation

As mentioned above, these tokens are not tradeable or transferable, as so act like a different class of token that plays an important role in governance and security of the chain, but should not be considered in calculations of circulating supply or market cap.

• 5 million of these tokens will be staked and managed by Regen Foundation
• 30 million of these tokens will be initially held by the foundation with the express purpose of engaging specific stakeholders to participate in governance.

Toward Impact

With nearly 500 token holders at launch, carbon credits already being bought and sold, a suite of new pilots, independent teams developing integrations, applications, and modules on Regen Ledger coming right after launch, a solid reputation in the Cosmos community, and a core team dedicated to ecological regeneration and social empowerment, Regen Network is creating waves in the space and creating a real positive impact in the world. This token sale gives the project the capital it needs to continue the momentum and truly be the tech tools for climate finance.