We are excited to announce that we are re-opening the Tixl token sale, with our third phase starting on October 18, 2019. As a recap: The first two phases of the token sale have been completed — raising 450,000 USD in phase 1 and 800,000 USD in phase 2. The total amount raised so far is 1,250,000 USD.
Structure of Phase 3 of the Token Sale
Phase 3 of the Tixl token sale will start on October 18, 2019 and end on March 31, 2020 (or earlier). The goal is to sell up to a maximum of 90,000 MTXLT, which equals 10% of the total token supply. As you probably know, Tixl [MTXLT] can already be traded on Binance DEX. With this in mind, the two big questions are how we can sell Tixl directly and, especially, what price we can sell the tokens for?
First of all, we are setting a base price for phase 3.
The base price for phase 3 of the token sale will be set to the current Tixl market price, but at a minimum of 300 USD. As an example, if the market price is 150 USD then we will set the base price at 300 USD, but if the market price is 350 USD then the base price would be set to 350 USD.
In this case, we define the current Tixl market price as the 24h high, according to the official exchanges MTXLT is listed on — at the moment this is only Binance DEX.
In addition to the base price, purchases in the third phase of the token sale will always be locked for at least 6 months. Locked means that tokens will be sent to the purchaser’s wallet with the next token distribution after the lockup period has expired. A purchaser can increase the lockup period and receive bonus tokens in return.
The following lockup bonuses can be chosen:
- Lockup period of 6 months = default (no bonus)
- Lockup period of 12 months = 25 % MTXLT bonus
- Lockup period of 18 months = 35 % MTXLT bonus
- Lockup period of 24 months = 50 % MTXLT bonus
- Lockup period of 30 months = 70 % MTXLT bonus
- Lockup period of 36 months = 100 % MTXLT bonus
- Lockup period of 42 months = 140 % MTXLT bonus
- Lockup period of 48 months = 200 % MTXLT bonus
- Lockup period of 54 months = 300 % MTXLT bonus
- Lockup period of 60 months = 400 % MTXLT bonus (equals $60 at a base price of $300)
The decision on the desired lockup period has to be made at the time of the purchase. Example: A purchaser wants to buy MTXLT for a total amount of 6,000 USD and plans to hold the tokens for at least 36 months, as a long-term investment. Let’s assume the market price in this situation is around 200 USD, resulting in a base price for the token sale of 300 USD. By taking the base price, the purchaser would be able to buy:
6,000 USD / 300 USD per MTXLT = 20 MTXLT
Now, since the purchaser agrees to lock the tokens for 36 months, a 100 % MTXLT bonus will apply and the purchaser will receive an additional amount of 20 MTXLT. With the additional tokens, the purchaser would achieve the following price per MTXLT:
6,000 USD / 40 MTXLT = 150 USD per MTXLT
By introducing the lockup bonuses, we can still sell tokens for financing the project while still having an active public market.
Lockup Period Early Cancellation
If a purchaser changes their mind regarding the chosen lockup period, the purchaser can cancel the lockup at any time after a minimum lockup period of 6 months. The cancellation will result in a 50% loss of the lockup bonus. Example: The purchaser mentioned in the example above who decided to lock their tokens for 36 months wants to cancel the lockup period after 25 months. Working on the lockup periods, the purchaser would still qualify for a bonus of 50 % (as the 24 months has been reached). However, since the purchaser initially committed themselves to a lockup period of 36 months, the bonus will be halved to 25 %.
In addition to the lockup bonus, larger investors have the chance to receive an additional volume bonus. The bonus will only be applied to the MTXLT amount purchased (it will not be applied to the lockup bonus). The following volume bonus levels apply:
- Minimum purchase 5,000 USD = 10 % MTXLT bonus
- Minimum purchase 25,000 USD = 25 % MTXLT bonus
- Starting at 50,000 USD = individual* MTXLT bonus
Example: A purchaser buys Tixl tokens for 12,000 USD, at a base price of 300 USD, and commits to a lockup period of 24 months. The following calculation would apply:
- 12,000 USD / 300 USD per MTXLT = 40 MTXLT
- Lockup bonus = 40 MTXLT * 50 % = 20 MTXLT
- Volume bonus = 40 MTXLT * 10 % = 4 MTXLT
Total MTXLT amount = 64 MTXLT
*individual: By “individual bonus” we grant ourselves freedom in negotiating bonuses with larger, strategic investors.
Minimum Funding Goal
The minimum funding goal describes the amount of money we need to successfully launch the Tixl network in 2020. It should be considered a minimum goal. Ideally, we’ll reach a higher cap which will help the project as it allows us to spend more on the marketing and development side.
The minimum funding goal for phase 3 of the token sale is 870,000 USD. The funds are planned to be allocated as follows:
You will see that the three main cost slices are staff, marketing and audits. By staff we mainly mean developers working on the Tixl prototype and, later, the Tixl mainnet. The costs for marketing are calculated in a way that allows us to spend approximately 10,000 USD on marketing every month plus to have some room for one or two larger marketing campaigns. Last, but not least, an important thing for us is to do our best to ensure that the Tixl ledger cannot be compromised. We want to reduce the probability that this could happen by spending a relatively high amount of money for security audits. These audits may be conducted by third-party companies or by hired specialists.
Phase 3 Marketing Strategy
We initially thought about making phase 3 completely private. Our plan was to approach investors directly instead of conducting a public sale where anybody can participate. However, with the structure outlined above, we decided to even go public with sale 3 as well.
For our marketing strategy, we’ll move forward with 3 approaches:
Social Media Marketing: This will be the same as our first two token sale phases. We will try to get some promoted and some free slots on well-known crypto YouTube channels. We recognized that this brings the highest quality traffic. However, this time, we will focus less on social media marketing if the overall crypto market is bearish or turning sideways. After analyzing what worked best during the first two phases, we found that our marketing was way more effective in small bull runs with an overall positive sentiment.
PR Marketing: We are planning to publish articles in magazines read by high net worth individuals and entrepreneurs. We want to see if we can attract people from outside of the crypto space to our project.
Direct Approaches: One of our goals for phase 3 is to attract larger strategic investors. To do this we will approach people, family offices, companies, and VCs directly. We’ll try to make the approaches either through our network and advisors or by attending events where we can get exposure to these people, or the people behind these organizations. We might also send an updated pitch-deck to a list of crypto-focused investment vehicles.
As preparation for all these marketing efforts, we are currently polishing our whitepaper, executive summary, and our pitch-deck. The Tixl FAQs will be updated in regard to the next phase of our token sale within the next few days. We are looking forward to some exciting months and another challenge in the Tixl project.