[Translation to English][ICO] Is this the last event of the year? Gnosis token launch announcement

Gnosis token launch that had been anticipated for a very long time is予定 to begin this month. I think this may be the last major ICO of 2016. Since the background knowledge was officially announced, I’ve translated it into Japanese.

Gnosis Token Launch Announcement

Preliminary Knowledge about the Token Launch

Tokens for platforms and apps on a decentralized network are distributed in various ways. In Bitcoin and altcoin models, they are gradually distributed through proof of work or proof of stake mechanisms. Even among these mechanisms that mainly follow the supply curve, there are several variations. This curve determines the distribution of the total supply of coins.

In the past two years, informal criteria for token sale methods have emerged. In that mechanism, you can receive a certain amount of tokens in exchange for sending a certain amount of cryptocurrency to a specific address. Those launches are typically conducted over about 30 days. The exchange rate of the cryptocurrency sent and the app received declines over this 30-day period (i.e., you get fewer tokens per unit of cryptocurrency).

For example, the exchange rate in the first two weeks might remain at 200 tokens per 1 ETH, but afterward it will linearly drop to 1.5 ETH per 200 tokens, and then further down. The total number of tokens issued often depends entirely on the amount of cryptocurrency being sent. Suppose the rate is 1 ETH per 200 tokens. If 100 ETH are sent at that rate, 200 million tokens will be issued.

This model creates friction for buyers. Buyers feel the price may rise and feel compelled to purchase app tokens before they have sufficient justification to do so. This uncertainty in token issuance may undermine the practicality of the app token itself.