Incremint.io Ltd. is conducting an ICO in which it will sell tokens called Mints. Each
Mint will entitle its bearer to a 10% discount on a token purchase of up to .01 ETH
value in an ICO using Incremint.
The basis for calculating the amount of the discount and controlling the scale of
the discount will be .01 ETH per Mint token. Mints are being sold in this ICO at a
fraction of that basis, creating a compelling economic opportunity for buyers. Mints
will not expire, and may be used on subsequent ICOs using Incremint, in
perpetuity, at the discretion of the token holder. Incremint will not charge a
commission to Mint holders for their usage.
Mints offer two synergies to issuers when choosing Incremint:
Using the escrow solution will increase demand for their ICO because token
buyers will have increased comfort due to the performance incentives
placed on the issuers, and the reduction of risk that Incremint provides; andIncremint will be underpinned by Mint token holders who will constitute a
pool of incremental demand for the issuers’ tokens, justifying the discount
that an issuer accepts on these sales.
It is not envisaged that cannibalization of demand will occur such that token
purchases by Mint bearers would otherwise occur without the existence of Mint
tokens and their respective discount. The demand is thus incremental. An issuer
should perceive purchases by Mint bearers not as a 10% discount, but as an
incremental 90% sale. Issuers using Incremint’s escrow solution may not opt out
of this discount.
As statistical data from precedent transactions becomes available, issuers of new
tokens using Incremint will have greater clarity on the demand to expect for their
ICO, enabling them to more tightly define and align their token strategies with their
needs.
The larger the community of Mint bearers - the greater the depth of the demand
pool for issuers’ ICOs. This will in turn attract more issuers to Incremint, creating a
robust pipeline of ICOs for Mint bearers to consider backing and completing the
synergistic loop.
As an example of how the discount is calculated, assume a buyer owns 100,000
Mints. The buyer sees that a new ICO will be conducted using Incremint and
researches the ICO. The buyer becomes interested in the potential of the
underlying project and appreciates the reduced risk afforded by the Incremint
escrow solution. As such, the buyer decides to purchase 1,500 newly issued
tokens for 1,500 ETH. The Mint bearer, however, is able to purchase 1,500 new
tokens of the issuer for a lower price of 1,400 ETH (having 100,000 Mints equates
to a maximum discount basis of 1,000 ETH, so the buyer pays: (1-10%)*1,000+500
= 1,400 ETH, the 500 ETH not receiving the 10% discount as it is the amount in
excess of the 1,000 ETH basis).
Mints will be issued over a three-month period beginning in January 2018. Early
purchasers of Mints will benefit from the bonuses set forth under ICO Roadmap.
Mints buyers will share a fundamental belief in ICOs as a new paradigm in
fundraising. They will have the opportunity to experience enhanced economics on
future issuances of high-quality new tokens, with reduced risks owing to Incremint’s
escrow solution. This is a compelling value proposition to token buyers of all
profiles. Institutional buyers will have a particular interest in this opportunity as it
benefits their recurring appetite to buy into high-quality ICOs as well as their desire
to support a robust self-regulatory mechanism in the blockchain sector.
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