Thetta’s Liquid Token Distribution (LTD) approach

In the previous article, we analyzed and compared different ICO schemes — Designing The “fair token distribution model”.

Please check this as it’s a very long (and i hope interesting) article there.

Firstly, we are not going to do an ICO! Instead we will do a continuous token generation that we called a Liquid Token Distribution.

Simple as that

1. We won’t do any ICO.
2. We emit tokens starting from day one of the Thetta’s official launch.
3. All payments/bonuses will be done in tokens only!
4. We won’t need ETH or BTC to fund the development.
5. Token buyers or team members can sell tokens starting from the day one.

No ICO? How is that possible?

1. We have the first smart contract (SC1) that emits tokens in small chunks with milestones and voting. All team tokens are vested. This helps to avoid large sums of tokens being emitted for team members/buyers. Only a small number of tokens are emitted. Token are emitted continuously. All rules are in the smart contracts.
2. Second smart contract (SC2) is a Bancor Smart Token (market maker) contract. We put X ETHs there and N tokens. There is initial price generated automatically by the Smart Token.
3. If developers or token holders need ETH — they can go to SC2 and sell their tokens at the current price effectively lowering the price of Thetta tokens.
4. If people want to buy some Thetta tokens — they can go to SC2 and buy some tokens at the current price effectively increasing the price of Thetta tokens.

Pros

1. All Thetta token buyers are 100% equal to a team member. There is no need to wait for the “ICO completion” or “Exchange listing”. Anyone can sell tokens starting from the day one.
2. The team gets a small number tokens to fund the development.
3. This approach motivates team members to increase the price of tokens, because they don’t have massive ETH funds. So token buyers feel good too!
4. This simplifies all accounting as it is one done in Thetta tokens.
5. We don’t need to spend money to list our tokens on several exchanges. We can list them later when token price reaches a high level.
6. Thetta token is liquid starting from the day one and can be exchanged starting from day one. There is no need to wait for the exchange listings.

Everything is open-sourced

Please subscribe to our blog to stay tuned!
Later we will publish the roadmap of our project and more details about the Thetta economy!

You are welcome: https://web.thetta.io

By the way, this approach was inspired by the article of my friend Joshua Davis — “Bancor Does Crowdfunding Better”. Please check it!

p.s. You can read here about why Dogether claimes that they “invented” this approach ))) — https://github.com/Thetta/OurCompany/blob/master/Dogether.md