Since the ICO we have not done any work on directly managing or influencing the token pricing. Our philosophy has always been to concentrate on building and let the market value the project fairly. The crypto downturn and bear market hit the JSE token hard and it’s valuation relative to fiat currencies has deteriorated.
We feel there is a significant benefit to all stakeholders for us to take action and ensure future rewards are viable for our users.
We are taking an mullti-pronged approach to this:
Token Buy Back
We will be using an automated script to increase liquidity and demand for the token on the LATOKEN exchange. We have developed the following pricing strategy and worked around the current lack of an API situation.
Step 1: Every hour a random value will be created between 0 and 1
Step 2: If value is greater than x the script will continue to step 3.
Step 3: Market data is collected from the exchange, topBid, topAsk, volumes etc.
Step 4: Purchase volume will be calculated randomly within bounds set monthly.
Step 5: Pricing will be set at a floored mid price between topBid and topAsk
Step 6: Order execution and logging
The idea of this is to create a non-gameable buy back scheme that regularly adds liquidity to the market at random intervals and builds long-term price momentum.
Publisher Mining Rewards
Publisher mining rewards will be brought in-line with the platform mining rewards at the following rates:
50 rewards @ 1 JSE per 30 second block.
Total distribution per 24 hours: 144,000 JSE
This decision wasn’t taken lightly as the publisher remuneration in fiat terms is already bleak (but still outperforms Monero miners). However the token price inflation from limiting the supply side of token distribution will benefit all stakeholders in the project in the long-term.
Advertising, merchant systems will remain unaffected.
Founders Funds
Founders have not sold any funds to date and have voluntarily increased the vested period for another 12 months, to be reviewed annually. We have always said that we are not interested in short-term gains and are committed to the long-term success of the project. This is something we should be shouting from the rooftops as not every project has the same principles.
Social Media, Whitepaper and Website
We are going to carry out a full review of the social media channels and complete an update to the whitepaper and website.
The team are still spending the majority of the time allocated to social media replying to individual queries. This does not provide the most efficient communication and benefit the project as a whole. As we scale the platform it is going to be critical that we create effective communication channels between developers, users, publishers and investors.
The website and whitepaper are long-overdue an update as we haven’t done anything other than minor changes since the ICO. Over the next few weeks we will be aligning these with the latest developments in the project and also releasing the development timeline for 2020.
Investor Outreach
A new pitch deck is currently under development and will be sent out to crypto funds, ad-tech firms, VC’s and angel investors. While our primary aim is to do an equity deal for a significant capital injection the effort will also raise awareness for the project with institutional grade investors. Market liquidity is low and it would only take one fund to take an interest and place a small allocation in the token to significantly boost the current token price.
The current market conditions mean retail investors are harder to find but if/when conditions improve we will look at marketing and PR targeted at retail crypto traders with the aim of developing exchange based demand.
