We are excited to be launching the Tezos fundraiser in a couple days. We would like to take this opportunity to remind contributors that our fundraiser differs in several respects from many other so-called “ICOs”.
First, our fundraiser is uncapped. Many fundraisers have introduced caps, creating artificial scarcity. We feel that this approach tends to rewards connected insiders or those with the ability to create denial of service attacks on the network. In addition it has created a “get rich quick” mentality leading contributors to focus primarily on the “ICO parameters” rather than on the content of the projects themselves. Our fundraiser will last for about two weeks and does not have such an artificial cap. This will let all interested contributors participate, but it also means that they should not expect the lottery-like outcomes of capped fundraiser. We would rather Tezos distinguish itself by the quality of its vision and execution.
In addition, most of these fundraisers currently issue “ERC20” tokens on the Ethereum blockchain immediately after their fundraising period. Oftentimes the project itself isn’t built, but the tokens are nonetheless tradeable. This attracts speculators looking to “flip” the tokens after a couple days. This is not the case for the Tezos fundraiser. Contributors will receive a paper wallet containing an encrypted private keys and may not be able to use these keys for several months after. While this lock up period will likely turn off some contributors, it will also ensure that those who do contribute share our long term vision on the value of the protocol. Not releasing an ERC20 token was a deliberate choice in order to attract like minded contributors.
The Tezos team is focused on creating genuine long-term value and invite those who share our vision for the transformational potential of the Tezos technology to support us in realizing that vision.