Token Details Announcement
I want to start off by thanking everyone in the Bluzelle Swarm for their support, questions and engagement. Conversing with everyone over Telegram is a blast and I love how members answer some of the questions for us. This is the best we can ask for.
As a recap, the Bluzelle decentralized database came about through the blockchain application work we did for enterprises like HSBC, AIA and others. We learned first hand the problems of existing cloud-centered databases and how they weren’t ideal for a world powered by Blockchain Apps. That was in April of this year, when we decided to evolve our tech to produce a decentralized database. From there we began architecting this new product and decided a token sale was ideal to bring this to market for the following reasons:
- We are building a true crypto-economy that needs a token for the ecosystem to grow.
- We started in this industry in 2014 because we believed that blockchain can distribute power and control to masses, so we should also raise our funds that way.
- It is a way to build up a strong community very early on. That’s why you’ve seen so many posts of us being at or hosting events specifically for developers and participants of our network. In doing so we’ve been able to attract some of the most respected advisors in the blockchain and tech community.
With all that said, cue DJ Jazzy Jeff and The Fresh Prince, “drumroll please”…here are our token details:
(our website and whitepaper have been updated with the info below)
Token Raise, Supply and Distribution
Hard cap: $19.5 M USD (includes the private pre-sale and public sale). It is pegged to USD.
Token Price: $0.12
Target sale date: Late Jan/early Feb 2018
Token Allocation:
- 500M total BLZ tokens will be created
- 33% (165M) sold to the public through a private and public sale
- 22% (110M) retained by the Company for future use. For further financing, we will have a pool available to use.
- 10% (50M) for the community and development pool. It is important for us to grow our community and increase participation in our network. These tokens will be used as incentives and prizes for hackathons and other special events
- 15% (75M) for the founders. We are committed to long-term growth and will have our tokens vest monthly over four years with a 6 month cliff
- 5% (25M) for company employees. They will also vest over four years with a 6 month cliff.
- 5% (25M) for our seed investor True Global Ventures. They provided the initial capital for Bluzelle in March of 2016. Their tokens are aligned with the founders and will also vest over four years with a 6 month cliff.
- 10% (50M) for advisors and bounties. We’ve been able to put together a stellar advisory team so far, consisting of tech heavyweights like Brian Fox, Prashant Malik, and Gil Penchina (more coming soon). Advisor tokens are vest between 12–24 months.
Contributor Cap
In the public sale there will be a cap per contributor. We want there to be wide distribution of our token. We have not yet finalized what the cap will be per person on the public sale.
Private Pre-sale
We’ve been having a private pre-sale for BLZ for strategic funds and partners. These are reserved for those placing USD $200,000 or more. We have a cap on the limit someone is willing to place at USD $2,000,000. Our target for the private pre-sale is 40–60% of our round but final numbers are TBD as there has been a surge of interest from strategic partners. Our goal is ensure the community has enough allocation to participate in the round.
All our pre-sale participants are screened and selected to see the value they bring to our project and are aligned with our vision for the long-term. They are known to us and have been part of top projects like Kyber, OmiseGo, Quantum, NEO and more. They are chosen because they can bring partnerships, access to developer communities and more. Amongst them are a solid international group comprised of:
Kenetic Capital — Hong Kong
Kryptonite 1 — United Kingdom
Hashed (formerly Blockchain Partners Korea) — Korea
Bonuses for the private pre-sale buyers is as follows:
$200,000 — $499,999–20% bonus
$500,000 — $999,999–25% bonus
$1,000,000 — $2,000,000–30% bonus
All these buyers have a 30 day lock-up on their bonuses.
Public Pre-sale
At this time, we do not plan on having a public pre-sale. Instead we are offering programs where people can earn a bonus. These programs are:
Flash Whitelist — In October we ran a 24 hour flash whitelist program. These early supporters will be given a token privileges which will be announced later.
Proof of Swarm — This “ambassador” program is for everyone else to get a chance to participate. Program details will be announced next week. We are excited about this as it builds and rewards the Bluzelle Swarm community.
Equity Investors from August 2017
In August 2017 we raised a $1.5M round of financing from Global Brain, LUN Partners, and True Global Ventures (who decided to put more in). This was to start development on the product, hire staff and build our community. None of the VCs in the $1.5M round received any tokens, they took equity in the company. Any tokens for these three VCs will be paid for through the private pre-sale and will have the same bonuses as detailed above.
Use of Funds
We plan to spend the funding in the following manner:
- 55% for Research and Development
- 10% for Network Costs
- 20% for Sales and Marketing
- 10% for Operations
- 5% for Legal, Compliance and Corporate Governance.
We have engaged a big four accounting firm for ensuring that funds are used in a proper manner.
Token details and use of funds are also available on our website.
What comes next for you
- Whitelisting — We have now opened up our whitelisting form again. It’s on our home page and you will be asked a few questions to get you through the process. Make sure you complete all sections. This is not a flash whitelist. It will be open for at least the next four weeks.
- KYC — To keep best practices and foster self-regulation by blockchain companies, we will be doing KYC on whitelisted members. This will happen later and everyone will be given advance notice on what is required and when it will be. We will detail all steps.
Currently residents of China and UN Sanctioned countries are not allowed to participate. We will be checking all these during KYC period.
Other Questions:
How long after the token sale will tokens be released?
Our plan is to release tokens within 30 days after the close of the sale.
Is there a minimum contribution for the sale?
No.
Is there a cap for the public sale?
Yes, there will be. It is yet to be determined and will based on an analysis of the whitelist figures. Our goal is to keep it wide spread for many.
Is Flash Whitelisted people guaranteed a spot in the public sale?
Yes.
What happens to unsold tokens?
They will be placed in either the company pool for future use or the community development pool (to further growth of the network and product).
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We’ve put together a model with the right backers, advisors and partners to ensure long-term growth. Everyone is believer in the vision and eager to be part of building the decentralized internet. In the coming weeks you will hear more news in regards to collaborations, use cases, product updates, smart contract release and more.
Thanks for all the support and let’s keep building a healthy and vibrant Bluzelle Swarm community.
Please also join us on our Telegram Group to be the first to get updated!
