A Crowdsale Campaign to Be Launched
Snip is a decentralized news platform for summarized articles on every topic people care about.
On Snip every user has their personalized feed of bite-sized content thanks to our (open-source) personalization algorithms and a wide variety of writers. Snip is like that friend who reads all the news and then gives you the need-to-know version.
Being dedicated to the community, we opted to further fund its development by effort of the community, publicly selling tokens which are instantly useful in the Snip platform. We seek no venture investment or some other traditional means to accelerate a startup, but are launching a crowdsale campaign instead. The crowdsale model enables the community to build platforms and solutions that do not rely on the corporate world, and serve the people instead of major entities. We are issuing SnipCoin, a token that serves not just as a means of crowdsourcing, but, most importantly, as the flesh and blood of the entire Snip ecosystem.
SnipCoin underlies the very essence of Snip. All the content on Snip is created by the community of writers, who are rewarded for it in SnipCoin, which has 3 unique uses:
- Writers — Rewards for readership.
- Readers — Paying for special content like audio versions or premium categories (think summarized academic content).
- Advertisers — Paying for ad space.
SnipCoin allows for a virtuous cycle — great content brings more readers, increasing revenue for writers.
The overall amount of all SnipCoins comprises 10 billion, with all of them pre-minted. Technologically, SnipCoin is ERC20 token compatible with Ethereum.
The crowdsale will kick off on September 29th, at 11:00pm UTC.
The campaign seeks to raise $800 thousand (soft cap) to $8 million (hard cap). It will last for 30 days or until the hard cap is reached, whichever occurs earlier. In case the soft cap is not reached, the buyers will be refunded.
Thirty percent of all pre-minted tokens (3 billion) will be available in the crowdsale. The remaining amount will be used as described below:
- 30% of all minted SnipCoins will be reserved for a future tokensale. They will be blocked for use for three years.
- 20% of all minted SnipCoins will go to the initial pool of rewards for content creators. This amount will be stored in a time vault releasing sums on a monthly basis, accordingly with the amount of rewards earned by creators during the month.
- 19.5% will be reserved for internal operations within Snip company, namely for settlements with its advisors and partners. It’s important to note that Snip’s employees, founders included, will not get any rewards for the first six months.
- 0.5% will be reserved for a bounty campaign and marketing purposes.
Please note that SnipCoins are transferrable and Snip does not control them. In addition, The percentages of the current crowdsale and future token sale could change according to the Wings forecasting results.
The current the exchange rate for SnipCoin is set at 1 ETH = 310,000 SNP. However, due to price fluctuations inherent in Ethereum, the official conversion rate will be confirmed or changed publicly the day before the crowdsale campaign’s commencement.
Distribution of Funds
Sixty per cent of all funds that will be raised are to be spent on development of mobile and web apps, toolkits for authors, development of personalization algorithms and other important issues.
The next important expenditure item is marketing, which implies promotion of the brand and involvement of the best writers. For the early phases of the platform’s life, Snip will hire full-time internal content creators who will cover events and ensure the diversity of covered topics.
Finally, there are administration-related expenses, which covers safety, legal support and other routine issues, and reserves, which are essentially an emergency fund that would be used to deal with some unforeseen expenses. The percentages could change over time but platform development will continue to be our main focus.
Stay tuned for further announcements.