We’re thrilled to announce that the Blockstack token sale for accredited investors has come to an end, with a total of $50M closed and allocated.
Over 800 individuals and funds participated, including Union Square Ventures, Foundation Capital, Lux Capital, Winklevoss Capital, Blockchain Capital, Digital Currency Group, Kevin Rose, Michael Arrington, and Qasar Younis (the former COO of Y Combinator).
Additionally, over 8000 people received vouchers for a potential future purchase of up to $3000 worth of tokens (subject to applicable law).
As part of the token sale, we aimed to distribute Blockstack tokens as widely as possible to as many participants as possible. And with over $50M raised and almost 10,000 participants across the sale and the voucher distribution, we’re well on our way to a wide token distribution are extremely pleased and humbled by the sale’s success.
Every sale participant received the same price of $0.12 per token and every voucher recipient will be offered the same price. There were no discounts and nobody received free tokens for being an advisor or service provider.
The token sale was designed to distribute tokens to those who would actually use and hold the tokens – not flippers and short term speculators. For this reason, tokens have been set up to be locked and continuously released to purchasers over a period of two years.
In addition, the sale was designed so that no single party would have a disproportionally large number of tokens when the network launches. Thus, the largest investors were limited to a maximum of $3M (or $6M upon opting in to double the lockup period).
The token sale was structured such that participants invest in a Delaware Fund with milestone-based triggers that allow capital to be gradually released from the fund to Blockstack Token LLC over time (20% initially, 40% upon milestone 1, and 40% upon milestone 2). These milestones represent an important check on corporate governance as well as a valuable investor protection measure.
The sale funding will go a long way and there’s a lot of hard work to be put in over the coming years, as we build out the Blockstack developer platform and app ecosystem and launch the Blockstack token.
Thank you to everyone who participated in the sale. We welcome you as backers of the Blockstack community and are honored to have you join us on the road ahead. We encourage you to sign up for our mailing list below to follow the Blockstack journey.