Announcing the SpankChain ICO — October 31st
SpankChain is a payment processor and live video platform for the adult entertainment industry. In order to fund development and accelerate our growth, we will launch an ERC20 token on the Ethereum blockchain on Tuesday, October 31th.
SpankChain Token Model
SpankChain will follow Gnosis’s example and use a dual generator/usage token model. Our generator token is SpankCoin and our usage token is BootyCoin. SpankChain will mint a finite supply of 1,000,000,000 SpankCoins. Locking down SpankCoin will generate BootyCoin, which can be redeemed for $1 in SpankChain infrastructure fees. Viewers will be able to pay models in ETH or any ERC20 token that models accept; models and camsite operators will pay their SpankChain fees (payment channel hubs, video streaming, etc…) in BootyCoin.
More details about our business and token model will be released in our forthcoming whitepaper; in the meantime the curious can read up on the GNO/WIZ token model here:
SpankChain State Channel Auction
The SpankChain ICO will be conducted through a new state channel auction system (contract code) which will eliminate blockchain network congestion and also allow our team greater flexibility in determining the price and quantity of tokens sold. There will be a 2 week purchase phase during which buyers will submit an ETH deposit to the auction smart contract and then submit any number of bids offchain through our website (using MetaMask) to our server. Bids will each have an ETH quantity and an ETH/SpankCoin price, and thus will approximate a buyer’s demand curve for SpankCoin.
At the end of the the purchase phase, a 1 week processing phase will begin. SpankChain will generate an aggregate demand curve from all bids, evaluate it against our internal supply curve, and decide on the strike price. We will submit this strike price to the auction smart contract and submit selected bids to the contract for processing. All selected bids will receive the strike price. The auction contract will only accept one bid per buyer. Once all selected bids have been processed, we will trigger the completion of the auction, which will enable withdrawals of both ETH and SpankCoin for buyers and for SpankChain. We can trigger auction completion any time during the processing phase; failure to do so before the end of the processing phase will result in a void auction and a full ETH refund for all buyers.
The SpankChain auction smart contract will also enforce several global constraints set at deployment. First, we will sell between 30–60% of SpankCoin. Second, we will limit the crowdsale to between $5M-$69M (in ETH calculated at the spot price of ETH/USD at deployment). These constraints imply a SpankCoin market cap range between $8.3M ($5M raised with 60% sold) and $230M ($69M raised with 30% sold). Third, we can only award a maximum of 30% bonus tokens to presale buyers. We can only trigger auction completion if these constraints are satisfied; failure to operate within the constraints will result in a void auction and a full ETH refund for all buyers.
SpankChain Presale Registration
SpankChain is currently conducting a presale in advance of the ICO. Registered presale buyers can receive up to 30% bonus SpankCoin with their purchase. The minimum presale investment at this time is $10,000. It is important to note that the SpankChain presale is not separate from the ICO; participation in the presale requires participation in the ICO. Registered presale buyers will still need to deposit ETH to the auction contract and submit bids on our auction website during the purchase phase. SpankChain will add presale bonuses to selected bids from registered presale buyers when we send them to the auction contract for processing.
To participate in the SpankChain presale, we require the following information:
- Full Name
- Email Address
- MetaMask Wallet Address
- Maximum ETH Purchase
Registering for the presale will award bonus SpankCoin to buyers only if one of their bids is selected. There is no guarantee of participation if the bid price is too high or if the auction is oversubscribed. In the event the auction is oversubscribed presale buyers will receive priority over regular ICO buyers. If the auction is sufficiently oversubscribed that only a subset of presale buyers can participate, bid selection will be discretionary. To increase the likelihood of receiving bonus tokens, we encourage presale buyers to place at least one of their bids at or above a price of $0.12/SpankCoin ($120M Market Cap).
We will be updating our website in the next few days to display all of this. In the mean time, if you are interested in our Presale, please email William at email@example.com