Alpha Release, Equity Tokens, xDAC ICO, and the Ecosystem
We’re making fast progress with project development. Our Alpha version is scheduled to be released by the end of August. Tests of our testnet have concluded, and we’re launching livenet in the next few days. If you’re interested in becoming our block producer, contact us directly for more information.
Equity Tokens Are the Future
More than 70% of ICOs fail. And with their demise, their tokens follow. Utility tokens have their use cases in underlying technologies, such as distributed ledger technologies, governance, or value exchange, all of which can attract large communities and build ecosystems.
However, small projects struggle to gain momentum and build communities strong enough to make utility tokens interesting for large audiences. This is the main reason these projects fail. Even if the project does develop later, the token never recovers as it doesn’t represent equity.
Many investors are cautious about investing in utility tokens since they are not backed by intrinsic value. Utility token price is driven by speculation, not by something tangible. This makes investors feel like they are not buying any value. Besides this, investors also see a huge disconnect between the token initial price and their exit strategy.
On the other hand, equity tokens are a substantial upgrade from company stocks. They represent a stake in the company, can be used for voting within the company and can be tradable on any centralized or decentralized exchange worldwide. Equity tokens do not necessarily depend on the community, but instead, follow company progress and valuation.
All companies created on the xDAC platform will issue equity tokens and launch token sales right after company registration. In the future, we plan to cooperate with exchanges that will list xDAC companies automatically after company token creation or after the token lock-up period.
How XDAC Currency Is Different and the Upcoming xDAC ICO
Although we are bullish on cryptocurrencies and Bitcoin, intrinsic value, as we mentioned earlier, is the key to investor decision. Currency that is not interconnected with a certain economic model is always going to have a difficult time justifying its value. As a result, it will always be volatile.
XDAC currency is directly linked to xDAC companies and their valuation. Each equity token issued by the xDAC company has a nominal value and is directly backed by XDAC currency. The company can be created with any number of tokens, but company ownership is distributed after the company reaches 51% token sale through XDAC currency.
Essentially, this means no more senseless printing of money in form of utility tokens as we’ve seen in the case of Ethereum ERC20. xDAC will be a true decentralized economy with a limited supply as well as a 5% yearly inflation rate to stimulate investments where currency can thrive with its decentralized economy.
In our upcoming ICO, we will offer for sale 20 million XDAC coins allocated for the public sale between September 5th and November 5th. We are also open to private pre-sale prior to ICO. Remaining coins will be sold in a later stage of the project in post-ICO.
While we are building an ecosystem around our network and platform, we invite developers and entrepreneurs to develop additional tools for xDAC companies. This includes but is not limited to mobile or hardware wallets, centralized or decentralized exchanges supporting XDAC currency and equity tokens of xDAC companies, block producers, and more.
Please contact us directly for details and rewards.