The MyBit tokensale will commence on Monday July 17th, 2017 and run for 30 days or until funding limits are achieved, whichever comes first. The goal of the crowdsale is to secure funding to finalize the development of the MyBit Platform, conduct pilot studies, and bring the product to Market.
Entities involved include:
Swiss non-profit in charge of network oversight
Escrow and Fund Management Oversight
Manage overflow Development and integrations
More information can be found in the Whitepaper Section 7.1, “Legal Structure”
MyBit tokens are used to access certain functionalities of the platform including registering a new asset, transferring an asset, and a variety of financing features. Holders of MyBit tokens will also receive real-time revenue distributions proportionate to their stake percentage.
MyB can be used actively for:
Investing in Energy and AI revenue generating assets : Funding & Revenue Sharing
Peer to Peer trading (buying and selling) of decentralized energy
Machine to machine payments
Trading on Open Exchanges
A smart contract governs revenue distributions as a percentage based on individual stake divided by total MyB supply. Any incoming MyBit network fees (minus ethereum network fees) are automatically distributed to tokenholders in the next mined block.
Maximum of 5,000,000 tokens
Variable, see pricing structure below
Blockchain-based smart contracts let us create a seamless system where every part is efficient, auditable, and scalable. If we were to build this with traditional technologies, it would create unnecessary friction (expenses) and involve piecing together many applications which creates attack vectors resulting in immense security vulnerabilities. Ethereum enables a solution that has payments, auditing, ownership, and business logic designed in its core functionality. This makes rolling out the product with Blockchain the most economical solution.
We evaluated raising capital between a Blockchain crowdfunding campaign and traditional venture capital and concluded that utilizing an Ethereum ERC20 token would be the optimal fundraising method to achieve our vision with this platform.
Blockchain crowdfunding (in this situation) is better for our investors, end users, and the overall community. Liquidity is a critical component missing in traditional financing methods, that we wanted to enable for investors. We also wanted the overall structure of our organization to be democratic, and did not want to give a centralized group of investors the power to change the fee structure or pricing model in a way that was not in the best interest of the users
How it Works
1) Participants send funds to an Ethereum Smart Contract from an easy to use Dashboard on the MyBit website.
2) The Smart Contract mints tokens instantly and sends to user’s online account. These are available for withdrawal upon the close of the crowdsale.
3) Once completed (total duration or maximum tokens issued) the Ethereum funds are then transferred to a mult-sig escrow wallet with signing keys (Ian Worrall (MyBit), Thomas Pollan (MyBit), Fran Strajnar (BNC), and Collin Lahay (BitRated, #2 most Trusted in the World).
All funds contributed during the tokensale period will be held in escrow (a multi-signature Ethereum wallet contract). The MyBit team has worked with Brave New Coin to devise a release schedule that enables rapid development of the platform as well as protect investor funds.
Funds raised during the tokensale will be used for Legal, Marketing, Development, and ongoing operational expenses. The funds will initially aid in the hiring of full-time React, Solidity, and Full Stack engineers to speed up time to market. Then they will facilitate in-depth pilot testing and marketing.
A full analysis of Use of Funds and Milestones can be found iin Section 9.3 of the whitepaper.
We are unaware of any more heavily regulated industries than Energy and Financial Services and there are few areas more visible on regulators’ radar than Bitcoin and Blockchain crowdfunding campaigns. We believe we have addressed all known regulatory issues but undoubtedly new regulations will arise. We will continue to proactively work with regulators to help drive regulations that facilitate our vision of low cost, efficient financial transactions as well as those regulations that support and address the creation of local area decentralized energy grids.
Monetization occurs in the form of micro-fees for every action conducted on the MyBit network including:
These fees will then be distributed to tokenholders based on ownership percentage once validated (typically within a few blocks of occurring). To minimize Ethereum network fees so our tokenholders can maximize profits, we may adjust the distribution model to combine fees in a “pool” and then distribute in set block intervals.
1) Passive (just holding tokens) MyBit Token holders receive 1% fee for all transactions on the network which is then distributed based on % ownership.
2) Investing: Revenue share based on revenue generated from asset
1) Price appreciation of token. Based on theory of supply and demand (due to fixed supply) as demand increases, price should follow.
1) Excess production sold back to grid
2) Excess production sold peer to peer (or machine to machine)
3) Usage from consumer of Asset
We will ensure that MyBit is tradable on a minimum of 1 major exchange (although our goal is 3-5 leading cryptocurrency exchanges). While we cannot guarantee substantial liquidity levels of the MyBit Token until the platform is fully deployed, we will make every effort to enable the growth of the liquidity market from the start.
Our goal is high levels of liquidity on the MyBit Token (MyB) market. This is achieved through the laws of supply & demand, P2P energy trading, and machine to machine payments.
Through the laws of supply and demand, as we gain more market share, the demand for MyB increases thus creating buy-side liquidity. P2P energy trading creates steady liquidity on both sides of the market. Machine to Machine payments create constant buy and sell-side liquidity.