Dear Sp8de Investors,
This is an important announcement concerning the Sp8de’s Jackpot Schedule which is revised on order to ensure equality among Sp8de investors.
In the past we showed to our investors that the unsold tokens during the Sale phases will be distributed in parts to the Sp8de foundation and the Jackpot winners.
We have shown the following distribution schedule for the unsold tokens:
After Jackpot I where we planned to distribute 288,888,888 SPX, however, due to lower than expected purchases we have distributed 374,015,170.22 SPX (29.47% more).
Below we show how many tokens we have sold, how much we planned to sell, and how much were left unsold that we have to give away to Jackpot winners and the foundation.
It becomes apparent that the unsold tokens are becoming a relatively large part of every Jackpot due to the distribution schedule of unpurchased tokens causing concentration of tokens among few token holders – creation of “whales”. We have had numerous complaints from our investors that a few large buyers would benefit disproportionately to smaller buyer in this case.
The Solution
We thought of three different approaches:
A) Do nothing.
B) Burn unsold tokens.
C) Distribute part of the unsold tokens to existing buyers in proportion to their overall purchases in the crowdsale.
In approach A. we do not solve the problem, there will a few large holders of SPX – we put in a disadvantaged position the small buyers.
In approach B. we again do not solve the problem because small buyers would get nothing and large buyers would get even more later if they win Jackpots.
We deem approach C. the most optimal for all investors. We plan to change the distribution as follows:
This means that from the unsold tokens from Sale II, III, and IV none will be distributed to the Jackpots. To the foundation only 20% and 30% of the unsold tokens during Sale III and IV will be distributed and none from Sale II.
All other unsold tokens will be given away to all participants in the Pre-Sale and the ICO in proportionate parts to their contribution to the ICO (not counting the Jackpots won). In this way, we do not cause trouble neither to small nor to large investors in terms of dilution. We believe that this case is best illustrated by an example.
For simplicity and for brevity imagine that the total supply is 100 tokens, 80% of which is in ICO and 20% remains with the foundation, 40% are in form of crowdsale and 40% are in form of Jackpots.
We have 3 investors:
Investor 1: Bought 23 tokens, won in the first jackpot of 20 tokens.
Investor 2: Bought 4 tokens, didn’t win tokens.
Investor 3: Bought 2 tokens, didn’t win tokens.
If tokens are burned (assume nothing is given to foundation):
Investor 1: He will hold 87.8% of all tokens distributed (43/49).
Investor 2: He will hold 8.2% of all tokens distributed (4/49).
Investor 3: He will hold 4.1% of all tokens distributed (2/49).
If tokens are distributed (assume nothing is given to foundation):
Investor 1: He will hold 86.2% of all tokens distributed (31.72/60).
Investor 2: He will hold 9.2% of all tokens distributed (5.52/60).
Investor 3: He will hold 4.6% of all tokens distributed (2.76/60).
Relative difference.
Investor 1: Loses 1.764% of his stake in the distributed tokens.
Investor 2: Gains 12.644% of his stake in the distributed tokens.
Investor 3: Gains 12.644% of his stake in the distributed tokens.
In this way, large holders are not disadvantaged as they will also likely win Jackpots in the future while smaller holders become relatively larger as compared to the case where we would burn the tokens.
If you have any further questions or need clarification write to support@sp8de.com