Comment on page
Terms and Conditions
OVRGLOBAL OÜ is a company based in Tallinn managing the issuing of OVR utility token. The token will act as a medium to interact with OVR, as well as to be used on services and products available on the OVR platform.
OVR Token is based on ERC-20 standard, the emission of tokens is governed by a DAO under the Aragon framework. OVR token will be created in two main phases: the Initial Token Distribution event and Initial Bonding Curve Offering event.
During the initial token distribution event, tokens will be created for the following categories: equity sale investors, private sale investors, team members, advisors, community rewards, bounty programs. All the rest of the tokens will be created and distributed with an Initial Bonding Curve Offer (IBCO). 15 days after the launch of the IBCO an OVR/DAI market will be created also on Uniswap.
The IBCO is scheduled by November 2020 and has the following rules:
- Is open to participants from permitted jurisdictions who perform KYC.
- There is no minimum contribution to participate in the Initial Bonding Curve Offering.
- Tokens purchased from the IBCO have no cliff or vesting period, those can be immediately claimed, transferred, or sold back to the Curve.
- When tokens are bought from the Curve new OVR tokens are created and the price of the token increases, when tokens are sold back to the Curve OVR tokens are destroyed and the price of the token decreases. The bonding curve is based on Bancor continuous liquidity protocol.
- There is no theoretical hard cap for the number of tokens that can be minted by the Bonding Curve. Indeed there’s a practical limit given by the market in fact, linear growth in token emission corresponds to an exponential growth in token cost.
- Liquidity for sellers on the Bonding Curve is granted by the DAO smart contracts that limit the ability of OVR Global OU to withdraw the DAI collateral. More on these mechanics on https://fundraising.aragon.black/.
The initial token distribution will have the following structure and smart contract enforced vesting:
- Tokens reserved to equity subscribers: 4.250.000 OVR reserved to equity investors cliff period IBCO launch + 15 days; vesting period linear release of 72 months. Vesting Smart Contract: 0xE07f85362fe0d14d4F2b272b98d67B50A3148072
- Private Sale contributors: 3.168.000 OVR Tokens to early contributors of permitted jurisdictions who performed KYC. Cliff period IBCO launch + 15 days; with variable vesting period from no lock-up to 12 months. Before the Cliff date, OVR will release the smart contract for the private sale contributors to convert the genesis token to OVR token.
- Team Fund: 26.500.000 OVR tokens reserved to incentivize the OVR team members and contribute full time to the project with a long-term mindset. Cliff period IBCO + 15 days; vesting period linear release of 48 months. Vesting Smart Contract: 0xCEE8fcBC9676A08B0a048180d99b41a7F080bB78
- Advisors: 5.950.000 OVR tokens reserved to Advisors to support the project. Cliff period IBCO + 15 days; vesting period linear release of 24 months. Vesting Smart Contract: 0xC1D9261cBc6DeD410dC81929EBB0871471E7e9D3
- Bounty program: 1.500.000 OVR tokens reserved to the community members who participated to the treasure hunt and other token incentivized campaigns. Cliff period IBCO + 15 days; vesting period linear release of 3 months.
- Foundation - Community rewards: 20.000.000 OVR Tokens reserved for rewards to community members participating in the OVR platform, such activities include IPFS nodes operating and staking, liquidity mining, voting. The release of those tokens will be controlled by token holder voting, yet whether the community voting result, funds will not be available faster than the following hardcoded release schedule: Cliff period IBCO + 15 days; vesting period linear release of 72 months. Vesting Smart Contract: 0x0965cBf02906b8c854037A16D4f39456444cE600
- Foundation - Ecosystem: 20.000.000 OVR Tokens reserved for supporting the ecosystem, the release of those tokens will be controlled by token holder voting, yet whether the community voting result, funds will not be available faster than the following hardcoded release schedule: Cliff period IBCO + 15 days; vesting period linear release of 72 months. Also, the mentioned fund may be burned in case the token holder community decides so. Vesting Smart Contract: 0xe3729fA98e1bC66750F986E95b37044B06D26D73
- Contingency liquidity bootstrapping: 320.000 OVR funds are reserved for liquidity bootstrapping with partner exchanges. The reserve will be used only in case of network congestion or excessive price volatility on the initial moments of the IBCO launch will not allow for liquidity supply. Unused tokens will be burned.
Why so many pre-minted tokens? Why not just going out with a minimum amount of tokens and then mint those later with the consent of the token holders?
For the following reasons:
- 1.We believe that declaring a total amount of circulating tokens in advance is much fairer than minting those later on. This first solution allows for fully informed price discovery since contributors and subscribers have a clear idea of both circulating market cap and maximum* fully diluted market cap.
- 2.There can be coordination problems in proposing to token holders to allow for minting new tokens since while those can be used with a positive impact for the project, dilution fear can prevail. Better have a reserve than later on can be burned, the coordination problem is minimal in such a scenario, in-fact reserve token burn has strait-forward benefits for token holders.
- 3.In a crypto project governed by DAO pre-minting and assigning tokens to specific tasks equals to algorithmically committing to a business plan.
*tokens sold to the bonding curve get destroyed diminishing supply.