Funding The Unigrid Foundation and Internet 2.0
Things are certainly moving forward for the foundation. We have always been committed to the idea that we should share everything with the community and we do not intend to stop now.
The funding of the foundation is moving forward. While we are not allowed to mention any names, we can certainly disclose some details. We are currently in talks with several investment providers (firms that mediate investor contacts). This gives Camilla (our attorney) a full schedule going over their terms. You better believe there is a lot to go through!
While we would like to get some quick funding so we can get our future office space secured, we also don't want to rush anything. Every firm contacted has slightly different terms and commission rates. Some take their commission from the projects they fund, while others take a commission from the actual investors. In fact, some might actually take a commission on both ends. We actually don't know, as we have not seen the agreements they have with the investors themselves. This whole experience has been a new learning exercise for us, as it is the first time we are looking for funding.
The importance of decentralization
Some of the firms we contacted asked for exclusivity (making them the sole mediator). Everyone needs to understand that the decentralized nature of the foundation and charter discourages the foundation to make deals that lock us down and work against the decentralization of the network. The Unigrid token itself is Proof-of-Stake, so we want to see a broad investment sphere with many parties involved.
The foundation will reject any requests for exclusivity that locks out other investors or investment providers. With that said, we will of course favour investment providers that give us the best terms and commission rates, weighting in decentralization into every decision we make.
The limited supply of 20 million tokens in the first round
The amount of Unigrid tokens for sale in the first investment round is set to 20 million tokens. We have been asked several times if we would be willing to stretch the supply available for sale in the first round. To avoid repeating the same thing several times and to set the record straight, we have a number of reasons for setting the first investment round at a slightly lower amount:
- We simply don't need more. Selling 20 million Unigrid at $0.75 - $1.25 gives the foundation enough financial room for this first round.
- Decentralization. Less investors holding tokens bought at a low price benefits the network. We want the first round, where the token is sold at the lowest price, to be the smallest, in order to keep the economics sane and minimize price fluctuations when some of these tokens are sold at a later stage.
We will not increase the size of the first round. We will be able to use this first funding round to cover offices, development and new hires, with enough left over to expand marketing and partnerships. The foundation will need dedicated developers that have similar ideological values as the foundation. Finding the right developers will also take time.
Sale participation and the sales portal
Early token holders and angel investors buying at $0.75 will be able to sell their tokens on our sales portal at $1.00 or $1.25 per Unigrid. This will bring in additional investors and help publicize the project. While things may change and it's important to consider all the circumstances around the sale, the preliminary date for this sale is currently set to October 2021.
The community and all our investors will also be allowed and encouraged to participate in the sale in subsequent rounds. If you buy Unigrid tokens in an earlier round you will be allowed to participate in the sale of subsequent rounds.
How do you invest?
If you want to invest in the angel sale of Unigrid you need to contact the foundation directly. The foundation offers the tokens slightly discounted at $0.75 to private investors, VC's and institutional investors. The price on our sales portal will be set to $1.00 and $1.25 depending on the lockup period you choose. We do have some requirements:
- VC firms, institutional investors and other entities can, at most, buy the equivalent of $3 million in Unigrid tokens. Minimum investment amount is $250 000.
- Smaller private investors can, at most, buy the equivalent of $250 000 in Unigrid tokens. Minimum investment amount is $25 000.
We have chosen these levels for two reasons:
- The foundation is obligated to verify the identity of our buyers. Setting a minimum investment level keeps the amount of paperwork down.
- Setting a maximum investment level helps to keep the network decentralized and avoids a single entity from holding too much of the future supply.
We are currently in talks with several investment providers and investment groups. If the full 20 million of the first round is sold to angel investors, the tokens sold on our sales portal will instead be provided by these investors and early token holders. The foundation will not add additional tokens to the sale.
Join us in the mission of the foundation and help us fund and develop Internet 2.0 and join the fourth industrial revolution!
For more information about The Unigrid Foundation, the funding rounds and details about the Unigrid network, please visit our website and refer to our orange paper.