Chapter 7. The Token Sales Mechanics
Creating tokens in an ICO, as covered in Chapter 4, Token Varieties, was one thing, but figuring out how many to create, how much to sell, the early round bonuses, the inflation rate and everything else relating to the mechanics of the tokens was (and still is) a challenging task. All of the above had to be communicated to supporters and investors, while trying to keep things simple.
Although there was no right or wrong way to create tokens and market them, a lot of parallels can be drawn from the issuance of regular shares in a company, served with a side of economic incentives, a sprinkling of game theory, and a dust of creative marketing.
In this chapter, we will look at:
- Token supply and distribution
- Presale strategy and bonuses
- Hard cap, soft cap, and no cap
- A reverse Dutch auction
- A token mechanic blueprint
If a lawyer was important when contemplating an ICO, a CEO or Chief Economic Officer was becoming crucial when looking at...
