The Big Reveal
Our position on unsold $DBA tokens after STO.
Every cryptocurrency is unique in itself, and DBA is certainly no different.
We envisioned selling out all allocated tokens during STO but so far there are still unsold DBA tokens from phase 2, 3, 4 and probably still counting.
Being a community driven project, it’s of necessity we reveal what we intend to do with unsold DBA tokens.
Putting all pros and cons in check, we have narrowed our choice to these 4 options. To understand the implication, it is necessary to look at the 4 scenarios — keep, burn, distribute or roll them out at public listing.
Meet Nozi
Let’s assume there is an investor named Nozi. If the STO ends on August 15th without selling out completely, Nozi investment portfolio will change depending on how Team DBA handles its strategic choice on what to do with those left-over tokens.
Many would think that the best choice Team DBA can make to favor Nozi, is to burn unsold tokens, but is this actually true?.
Given that Team DBA wants to show its appreciation towards Nozi, the team analyzed how to give her the best return on investment (ROI) possible. Here is how $DBA will be distributed under each scenario:
Keep – If Team DBA keeps the unsold tokens, then the total supply of $DBA stays the same, but the team’s allocated percentage grows relative to all the other percentages of the total supply. This means that relative to the amount Nozi pays to buy her portion of $DBA, she would get a small share of the whole total $DBA supply.
Let’s simply things with figures you can relate with:
10% of total $DBA supply is reserved as team token.
10% of total supply = 10M $DBA
70% of total supply has been reserved for pre-sale:
70% of total supply =70M $DBA
In this scenario, if only 60% of the actual 70% allocated for pre-sale are sold, 10% left unsold will be added to the team token making a total of 20%.
In plain terms, the team will go from owning 10M $DBA to 20M $DBA.
How profitable is this to you as an investor?.
Burn – The team could burn those unsold tokens. This should make Nozi happier. It makes the $DBA total supply smaller, giving Nozi a relatively ‘larger’ portion of the same amount of $DBA tokens. Sounds complicated?. You’ll understand in a minute.
Total supply: 100M $DBA
70% of total supply has been reserved for pre-sale:
70% of total supply =70M $DBA
In this scenario, if only 60% of the actual 70% allocated for pre-sale are sold, 10% left unsold will be confiscated, making the total supply to be no longer 100M $DBA but 90M $DBA.
This makes economic sense since the law of value revolves around relatively limited supply. That is true on the supply side, but for that expectation to become a reality, demand would have to follow in the secondary market.
By implication, burning tokens does not automatically fuel value.
Distribute – Team DBA could distribute those portion of $DBA that it did not sell to those who bought during the STO, such that the additional portion they get is proportional to the amount they bought. This would allow Nozi to enjoy a relatively bigger portion of $DBA tokens . But how market healthy is that?.
Well, it’s an already established fact that people place value on what they buy as opposed to what they get at zero cost.
Freebies in crypto space most likely result to pump-and-dump scenarios.
Roll them out at public listing: Given that the allocated volume of DBA tokens for public listing is 10M and price at listing is $1, tendency for whales to jump in on the bandwagon is relatively high. Ultimately, these whales will control the market, creating pump-and-dump scenarios we want to avoid, since the pre-sale investors will only get 3% of initial investment for 33months after an initial 13months lock period.
In plain terms: 10M $DBA is the allocated portion for public listing at $1/DBA.
10M ×$1 = $10M
$10M is relatively a small amount in the crypto space. Whales can easily come onboard at public listing and hold larger percentage of the 10M $DBA tokens.
While whales are necessary for a healthy structure but how profitable is it for pre-sale investors?.
Remember there’s a 13months lock period already in progress. By implication, pre-sale investors will get their first 3% of total investment by 2022.
Hmm!
With public listing by September 2021, for pre-sale investors, it’s like arriving late to a party that started a decade ago.
Rolling out all unsold tokens at public listing will create a positive cycle of appreciation especially for average investors.
In this scenario, if only 60% of the actual 70% allocated for pre-sale are sold, 10% left unsold will be rolled out at public listing, making the total tokens at public listing to equal 20M $DBA.
If 30 million tokens are unsold, we will have 40m $DBA at public listing. 10M previously reserved for listing and 30m unsold token.
When $DBA price appreciates after public listing, the team will proceed to tax all $DBA withdrawals from www.dafriexchange.com as a burn mechanism and apply buy back strategy that effectively adds that scarcity factor gradually to the DBA tokenomics.
The decision to roll out all unsold tokens at public listing is to create a win-win situation for our community of investors to whom we owe our utmost loyalty.
We’d love to hear your opinion, kindly share your thoughts in the comments.
#DBACurrency
