Quarashi ICO Lockup & Release Schedule
Quarashi Network will release it’s tokens to the public which supports project in ICO Stages 1-3. A certain amount of tokens will be vested to minimize risks for the emerging project, shown further in the article.
Vested tokens are tokens held aside for a period of time, locked by smart contract, until contract conditions are met. The use of smart contracts reduces counterparty risk as the programming of such applications guarantees the automatic execution of a transaction upon triggering of pre-defined conditions.
35% of total supply of Quarashi token is offered to public sale and vesting will act as a mechanism of value protection which is needed to a sustainable, profitable Quarashi Network platform.
According to the projects tokenomics, the public sale allocation is more than double of seed, presale and team tokens together – the team doesn’t have as priority the sale of it’s tokens, thus tokens that will be available first on the market will be the seed, the presale and 30% of ICO Stages, if their purchasers decide to offer them for sale.
Team tokens are have been locked since the Quarashi tokens have been issued. At the moment they are locked until January 2022. As there can’t be made any modifications to the smart contract at present time, once the team tokens are unlocked, they will go in locking again and will be aligned with the ICO Stage 1 vesting program. The interests of the team will be aligned with those of ICO Stage 1 holders.
Quarashi ICO Stage 1 will start on 1 October 2021, with 0.04 USDT per QUA and we are already seeing 50+registrations per day for this stage. Holders for the ICO stages will have 70% of tokens locked according to the chart below. 30% tokens of each purchase will be made available immediately to purchasers transferred in the purchasing wallet, as we have understanding to ones cashflow. After the 12 months lockup of ICO Stage 1, 16.6% of tokens will be released monthly over a 6 months period.
Purchasers of ICO Stages will receive Simple Agreement for Future Tokens (SAFTs) which will give holders the right to receive Quarashi Network tokens (QUA) according to the vesting schedule.
Trading of tokens has demonstrated to create a feedback loop between token valuation and platform adoption (Cong et al., 2018). In other words, the appreciation of token value leads more investors to buy tokens and join the platform, which in turn increases and accelerates user adoption of the platform. In that model, token price appreciation is in itself driven by investors’ expectations about the value of the platform and by capitalising on the growth of the user base.
Quarashi Network Platform has the advantage that it is modular – a core product with secondary products and it can market each module, once is released. The adoption can happen in all stages of development, rather than developing a single product which can be adopted only after the entire project is developed. Though the team has started to work the platforms way to adaption, mass adoption of a product and the synergy of modules takes time.
Studies show that Tokens which have a hybrid use, both as instruments for capital raising and a in network utility, lead to accelerated platform adoption. However it is possible that such value will not be equally created in such short time (3-6months) in case an investor is a pure capital provider with no interest whatsoever in using the platform and especially when the pure capital providers may represent 35% up to token holders.
Another mechanism already implemented with the scope to foster a thriving ecosystem is the maximum limits on investment per individual contribution, which also has a regulatory component.
Contributors diversification help the development of the network and have significant impact on value creation.
“Entrepreneurs may decide to seek financing through an ICO instead of IPO as a way to attract a consumer-base and build a network around the project instead of seeking a personal financial reward. While there is a fundamental difference between the two financing methods, the easier network effects may partly explain why ICO funding has overtaken other ways of funding in recent months. Rather than resorting to an ICO in the absence of other alternatives, companies may seek to fund their companies through token issuance with a view to create and monetize value from network effects.” – which is the goal of Quarashi Network
Research has shown that the value of a token of a platform is proportionally tied and dependent to the value of the cryptocurrency in which that token is purchased if the platform has no revenue generated from the sale of it’s products. This exposes such tokens to increased volatility.
Quarashi Network has set an in-network mechanism purchase of products to generate revenue and minimize a high volatility impact, it already has a viable, functional product which sees demand and has started to see demand in services from cryptocurrency projects. For this mechanism to have tangible, positive effects the Time component is again of high importance.
Quarashi Network is incorporated in Romania with established operations. Assessing the fundamentals of the project is possible, as Quarashi platform is not a concept anymore, but a tangible executed platform primarily funded by team members and available in 150+ countries.
“Companies are exposed to increased volatility that may be partly due to subscribers who are only driven by speculation and have no intention of participating in the newly-created network. Indeed, investors driven by speculative herd behaviour may invest with the intention to sell as soon as the tokens become tradeable (in what is called “flipping”). This further exacerbates the inability of a project to exercise their own pricing strategy when tokens may be the only way to consume the product/service.”