Posted 1 month ago | by Catoshi Nakamoto
Dear Ferrum Community,
When we started our incubator Ferrum Advisory Services, our goal was to ensure that loyal Ferrum community members could secure access to promising early stage blockchain start ups.
With the growth and success of our incubator, many new community members have joined Ferrum (for which we are truly grateful). However, some new investors are not actually loyal Ferrum community members. We know this because in recent weeks we have seen an increase of those attempting to abuse our system by holding FRM only for the snapshot and selling shortly thereafter.
To be clear: the rule has always been that investors must hold their FRM/FRMx through the date of the first distribution of the project they invested in. Those who sell prematurely will be issued a refund with a 10% penalty to cover gas fees and administrative costs. Of course, those “dumpers” also forfeit their investment and will not receive any tokens.
What then to do with those forfeited tokens? With our new model set forth below, we are able to create additional investment opportunities available in projects like Netvrk and I Bet You…and we view this as an amazing opportunity for our loyal community members!
We are therefore proud to announce a new system which will reward our most loyal community members and discourage any abuses of the system.
The New (Pilot) System for Rewarding Loyal FRM Holders
Please note this is a new system we are piloting and which is subject to change based on the results of the first project we are implementing this for — NetVRk.
There are 6 steps/rules:
- Between Monday May 10th at 9pm EST and Tuesday May 11th at 9am EST, we will take another snapshot to see who has sold their FRM/FRMx since the last NetVRk snapshot (note that this upcoming snapshot will also determine who qualifies for Flourishing Capital AI);
- After the snapshot, we will calculate how much investment in Netvrk has been forfeited by premature sellers, and we will issue refunds accordingly (note: people who sold their FRM/FRMx after the first snapshot but rebuy at least the same amount before the snapshot on Monday/Tuesday will be allowed to keep their allocation);
- To reward loyal community members, all those who increase their FRM holdings by at least 10,000 FRM as of May 15th 2021, will be offered additional allocation for NetVRk;
- After the May 15th snapshot, we will calculate the allocation amount (total of forfeited allocation amount divided by people who qualify for the extra allocation) and send a contribution form via email to the qualifying community members so they can contribute the extra allocation to NetVRk;
- Users must hold those additional 10,000 FRM until the first distribution of NetVRk;
- Users cannot convert FRMx to FRM to become eligible and also selling FRM/FRMx after this announcement would disqualify from receiving extra NetVRk allocation;
Note: This new model is designed for our LOYAL community members — so in order to be able to qualify you need to have had at least 1,000 FRM on your UniFyre wallet at the time of the first snapshot for NetVRk.
Examples of Potential Number of Winners
To stay consistent with our mission to provide guaranteed allocations to our loyal community, all those who increase their holdings by 10,000 FRM will receive an extra allocation in Netvrk.
However, the amount each qualifying person will receive will be based on the a) the amount of allocation forfeited by those who were disqualified; and b) the number of those who qualify (e.g. each person who added 10,000 FRM to their UniFyre Wallet within the time frame). Here are some examples:
- If $5,000 is forfeited by premature sellers and 50 community members qualify, then the allocation size will be $100.
- If $10,000 is forfeited by premature sellers and 25 community members qualify, then the allocation size will be $400.
- If $20,000 is forfeited by premature sellers and 25 community members qualify, ten the allocation size will be $800.
And so forth.
We believe this new system will encourage more positive behavior by our community and will benefit all our stakeholders. If this program goes as we expect, we will implement it for future incubations!
Thank you for your support of Ferrum Network!
Very truly yours,
The Ferrum Network Team
Follow Ferrum on Social Media
Ferrum Website: https://ferrum.network/
UniFyre Website: https://unifyre.io/
UniFyre Twitter: https://twitter.com/UnifyreWallet
Original article published on Ferrum’s Medium.