ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Saturday Dec 16th 2017
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

Guidelines For Balanced Ethereum Token Issuance: Interactive Coin Offerings

By

Jeremy

Nation

WriterETHNews.com

A recently authored whitepaper describes a method to make token offerings fair and balanced.

On September 24, 2017, a whitepaper was published that tackles the dilemma of fairness in token offering-based crowdsales, co-written by both Ethereum founder Vitalik Buterin and TrueBit founder Jason Teutsch.

Entitled "Interactive Coin Offerings," the paper describes a protocol that operates under the premise that “if each token buyer specifies a desired purchase quantity at each valuation then everyone can successfully participate.” The interactive coin offering protocol proposes allowing buyers to withdraw their contributions to the contract within defined parameters while exploiting the bookkeeping capabilities of executable distributed code contracts; buyers can set a cap on the value of tokens for the issuance, and if it goes above that valuation prior to a certain preset block number, the contract will issue a refund.

Other parameters of the protocol are a withdrawal lock and an inflation ramp. In the provided example, a 30-day crowdsale might allow for voluntary withdrawals during an initial 20 days. After that, only automatic withdrawals would be allowed. An inflation ramp offers a sliding scale for bonuses that apply to early buyers, decreasing, for example, from 20 to 10 percent upon initiation of the withdrawal lock, dissipating to nothing by contract closure or the end of the crowdfunding event.

The protocol also takes into account whale action in crowdsales by treating both large and small purchases the same. As per the paper, "Whales with low personal caps get pushed out of the crowdsale in just the same way as buyers who purchase a fraction of a token."

If adopted, the interactive coin offering protocol offers crowdfunding startups an avenue that may be more inclusive for participants seeking to invest in innovations that are potentially game-changing for the ecosystem.

Jeremy Nation

Jeremy Nation is a writer living in Los Angeles with interests in technology, human rights, and cuisine. He is a full time staff writer for ETHNews and holds value in Ether.

ETHNews is commited to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Interactive Coin Offerings, protocol or other Ethereum ecosystem news.