EOS token distribution takes in more than $185M in first 5 days
Block.one, the developer of EOS.IO software, a new blockchain operating system designed to support commercial-scale decentralized applications, has received 651,902 ETH, worth approximately $185 million, in the first five days of its 341-day long token distribution.
In exchange, 200 million EOS ERC-20 compatible tokens were distributed to purchasers representing 20 percent of the total 1 billion EOS tokens being distributed.
The EOS tokens began distribution on June 26, 2017. The distribution uses a token participation model by creating what is intended to be the fairest token distribution project launched on Ethereum. This elongated timeframe removes the quick frenzy that typically accompanies short token sales. It also gives the community time to learn about the EOS.IO software and participate in the token distribution.
The EOS token distribution also approximates an auction where for every period, everyone receives the same price. The respective set number of EOS tokens for that period get distributed pro rate amongst all authorized purchasers based on the total ETH contributed for the period.
"We felt an approximately year-long token distribution was the best method d to ensure people receive fair market value for EOS tokens," Brendan Blumer, CEO of block.one, said in the press release. "We anticipate that strong interest will continue throughout the year as the community continues to learn about the EOS.IO software and the benefits it can bring to their business."
Seven hundred million additional EOS tokens, representing 70 percent of the total EOS tokens being distributed, have been split into 350 consecutive 23-hour periods of 2 million tokens each. The tokens will be distributed at the close of each period. The remaining 100 million EOS tokens, representing 10 percent of the total being distributed, have been reserved for block.one as founder's tokens pursuant to the feedback received from the community to ensure that block.one has aligned its interests with those participating in the token distribution. If a blockchain adopting the EOS.IO software is launched, the founder's tokens will be locked and released over a period of 10 years.
The EOS.IO software introduces asynchronous communication and parallel processing to support hundreds of thousands of transactions per second. The software establishes an operating system-like construct upon which applications can be built and removes the requirement for users to pay for every transaction.
The software is intended to allow developers to build their own performance applications on the blockchain and deploy their own monetization strategies without requiring users to pay to use those applications.
Block.one intends for the EOS.IO software to support distributed applications that have the same look and feel as existing web-based applications, but with all of the benefits of the blockchain, such as transparency, security, process integrity, speed and lower transaction costs.