Public auction of user accounts
It is widely known that the reason ICO’s are able to attract significant user interest is because of time value. In other words users buy at presale or ICO point in anticipation of price appreciation as the token is listed on exchanges. Thus, the ICO mechanism is a perfect example of deflationary expectations in the crypto-currency market. After all, if tokens do not appreciate in price, what would be the reason to buy them early.
As stated earlier, a token that will truly reflect all monetary functions, must overtime, lose its purchasing power. Put simply, it becomes cheaper, and not more expensive.
How can FIREBIRD attract investments if its tokens do not offer price appreciation? Since, once launched, the main source of value in the system will be a serial number of the user's main account, we have developed a new mechanism of the initial offer – Open Account Auction (hereinafter, the Auction).
The Auction is essentially a process whereby for a limited amount of time, early users get allocated a certain amount of wallets as dictated by the chronological order of their verification and the size of their bids. Bid sizes are not limited. Bids can be increased at any time and through an unlimited number of attempts during the Auction’s duration. At the end of the Auction, the system will sort all participants according to the size of their investment and the serial number of their registration.
- In the first quarter of 2020, 1 million FIREBIRD accounts with registered number of 1 — 1,000,000 will be auctioned
- Auction’s duration is 1 year
- Auction is held on Coordinated Universal Time (UTC±00:00) and is taking place on the electronic platform https://firebird.auction
- Only first 1,000,000 registered users who have undergone full verification will be allowed to participate
- Bids are accepted in ETH and in Firebird Auction token (FAT) of which 10,000 were issued and distributed during the pre-sale (contract number 0x2746025ae2eba10c91d1c70393ffb23a58f05911). For the period of the Auction FAT value is set at the following rate: 1FAT = 1ETH.
- FAT tokens which were acquired by investors during the pre-sale and not utilized for bidding purposes during the Auction, will seize to represent any value immediately post the completion of the Auction. FAT would not be converted to FBD.
- Auction increment is 0.3 ETH or 1 FAT (FAT tokens don’t have any decimals)
- Assignment of serial numbers of wallets according to the results of the Auction occurs on the basis of primary sorting of participants by the size of the bid and secondary by the registration number. If no bet was made, but the account is verified, it is included in the register with a bid of "0".
- At the end of the Auction, the system records the total number of wallets, enables their access to the system, calculates and distributes the tokens onto them. Distribution happens such that serial wallet numbers of participants are assumed as from the moment of registration and basing the calculation on the fact, that wallet No. 1 was issued with 5000 tokens.
- If a certain user has used more than one wallet during the Auction to make bids, upon completion, the system will automatically transfer all tokens to the wallet with the lowest serial number. All other tokens are to be distributed (by means of commercial sale of gifting) by these users to third parties who have underwent full verification.
- Non verified user who has made a bid during the Auction, has 3 months to undergo full verification, but no later than the last day of the auction
- To pass the verification users will need to provide the following KYC documents: Proof of ID and Proof of Address
- During the first 11 months of the Auction, bidding users will benefit from a bonus system which adds to the bids according to the schedule provided in the table below:
Estimates and the total number of tokens
Each “lot” in the Auction represents a wallet with a unique serial number. Thereafter, each lot’s estimate implies the estimated value of the aggregate FBD tokens which would be distributed to that particular wallet immediately post the completion of the Auction.
Planned starting price of the FIREBIRD token as it lists on the first exchange - $1.
Below is a table displaying token distribution at the end of the auction as driven by serial wallet numbers and the number of participants:
||Sequence number of the participant
|Number of participants
||Balance on the account at the time of auction completion
The table above shows that being early reduces financial risk, as early wallets will receive high token distribution even in a case of a meaningful shortfall in the number of participants.
3 Scenarios are taken under consideration:
- The average of bids for the wallets exceed the estimate. This might mean that participants see themselves as long term users of the Firebird platform. This as the serial number of the wallet will keep its meaningful effect even after the auction and as the system grows.
- The average bid is on par with the estimate. This might imply that users optimize their risk/reward. Confidence in project success matched by the need to minimize participation risk.
- The average bid being lower than the estimate. This would mean that the lot is undervalued given that the value of the tokens which will be distributed on that wallet would exceed the value of the bid.
Regardless of the final outcome. The Auction should be considered normal if the distribution of bids is both above and below the estimate.
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