GIV Token Distribution Event: Frequently Asked Questions
P2P cryptocurrency trading and DeFi platform, CryptoLocally, will be distributing the GIV tokens to members of the greater blockchain ecosystem using a Bonding Curve Distribution at 13:00 UTC on Tuesday, September 29th 2020.
For additional information and discussion, please join our telegram community at: t.me/cryptolocally
GIV Auction Summary
- Hard cap: 30M GIV tokens (3% of total supply) minus the whitelist allocation of approx 1.5M.
- Start date and time: 13:00 UTC on Tuesday, September 29th
- End date and time: 13:00 UTC on Thursday, October 1st
- Where: To be shared through CryptoLocally Website
Alternatively, use Mesa - Duration: 48 hours or until the total GIV allocated has been claimed
- Initial Price: 0.0065 USDC/GIV
- Currencies: USDC
- Everyone should read the GIV legal disclaimer before participating
How can I buy tokens?
Tokens can be bought through CryptoLocally’s custom interface, which was forked from Mesa, which is a DApp that acts as a trading interface for the Gnosis Protocol. It is a permissionless DEX (like Uniswap and Balancer). If looking for more detailed information, we suggest that you read the guide on how to buy GIV tokens and/or the GIV token distribution event details.
What are token bonding curves?
Token Bonding Curves are smart contracts that use buy and sell functions to distribute tokens. As more tokens are bought, the price increases, and as they are sold, the price decreases. Investors can sell their tokens back if they wish, and buyers are given a level of influence over the project.
Token Bonding Curves are designed to circulate governance and create shared interests between the project’s team and the general community that supports the project. Bonding Curves allow for an effective supply and demand distribution process, and are thus the most ideal system for token distribution. They also allow for completely decentralized governance. For more information, read this article.
Why did CryptoLocally decide to use a bonding curve instead of offering tokens through an ICO or direct listing?
The price of the token should be set by supply and demand, not artificially determined like in an ICO. That way, the community has a direct impact on the price and the overall success of the token on the market. A bonding curve enables price increases and the ability to sell tokens back, which reduces the risk for the investor.
What is the Gnosis Protocol and is it open-source? Why are you using Gnosis Protocol?
The Gnosis Protocol is a fully permissionless DEX and it is completely open-source.
We decided to base our bonding curve on the Gnosis Protocol because it prevents the following issues:
- Front running via bots (making it impossible for real investors to participate early)
- Participants competing on factors other than the price they are willing to pay
Essentially, the Gnosis Protocol significantly reduces the risk of front-running and allows a more accurate price discovery to occur.
How does the allocation mechanism work?
As was mentioned, the GIV bonding curve is based on the Gnosis Protocol, a permissionless DEX that enables ring trades to maximize liquidity. Limit sell orders are placed to fulfill the demand of buy orders from the token buyers. Orders are collected over five minutes after which the order matching phase begins. Orders are matched by external “solvers” who submit solution candidates to the smart contract and compete for the fee of a successful match. To incentivise a fair solution, there is a utility function for every possible solution. The submitted solution with the highest utility function is selected as the winning solution and then executed.
For more specific information on how orders get allocated, we recommend that you read the Gnosis Protocol overview.
Can you sell back tokens?
Yes, you can sell back tokens. Selling operates the same way as buying, just in reversed order.
When will each batch end?
Batches end every five minutes. There is no limit to the volume that can be allocated and no limit to the number of orders that can be submitted. However, only 30 orders will be filled. The solver determines which orders are taken into a batch. The number of orders taken into each batch depends on the limit prices and whether there are tokens available at those prices.
Will everyone within a batch pay the same average price per token?
Yes. That is how the Gnosis protocol ensures price fairness.
When/where will the distribution happen?
The order interface will be shared before 13:00 UTC on Tuesday, September 29th on the CryptoLocally website and in the CryptoLocally Telegram community. The interface is already available on Mesa, but it is not customized to CryptoLocally (GIV) on Mesa’s UI.
Accepted currencies
Only USDC will be accepted.
How will the price behave? Is there a maximum price that GIV will reach?
We will create limit orders so that a market price curve is created. The first tokens will be priced at 0.0065 USDC/GIV, and the price of the tokens will gradually increase as more tokens are sold by the contract. The price curve is shaped like a sigmoid. Once an inflection point at approximately 7.5M GIV sold is reached, the price will increase more rapidly. The price change eases at approximately 17.5M GIV sold by the smart contract, and plateaus by 0.2 USDC/GIV.
Will anybody actually pay the initial price of 0.0065 USDC per token?
Yes. The Gnosis Protocol is quite different in design compared to other DEXes on Ethereum. It prefers solutions that are much closer to the market price. Simulations have shown that some accepted solutions are executed at the actual prices set by the bonding curve, even when buy orders with very high limits have been placed.
Be prepared
In order to access the distribution as early as possible, make sure that you have set up your wallet and loaded your funds beforehand by following this guide.
Watch out for Scams!
As always, be careful and double check everything. We can guarantee that CryptoLocally team members will not PM you first. Do not fall prey to imposters and scammers.
Whenever you are in doubt, you are more than welcome to reach out CryptoLocally admins on the CryptoLocally (GIV) Telegram community.
For your reference, the address of the GIV (ERC-20) token is:
0xf6537fe0df7f0cc0985cf00792cc98249e73efa0
There are NO Uniswap pools and/or Balancer pools at the time of writing. Third party pools may form after the GIV auction begins. The CryptoLocally (GIV) team will be seeding its own Balancer pool after the Bonding Curve Distribution and sharing the pool address afterwards. When in doubt, always check that the GIV token contract address is correct.
Further Reading
Link to GIV Token Distribution Event Details
This information is not investment advice. Please read the full disclaimer before investing.
About CryptoLocally (GIV)
CryptoLocally is providing non-custodial smart contract escrows for peer-to-peer digital assets trading. The platform has been designed with ease-of-use in mind so that anyone can gain access to these technologies.
