- The next Q DAO IEO token sale round will be conducted as a lottery, instead of a first-come-first-served system.
- The number of tickets you can claim depends on the amount of BNX you hold over a 6 days in a BTCNEXT account leading up from the 25th of July until 30th of July up to a maximum of 10 tickets per eligible account (each winning ticket representing 100 USD worth of tokens).
- The lottery draw will be done via a transparent, randomized system with a random selection of lottery tickets (explained below).
-The ability to buy tokens will only last for 48 hours starting from 8 pm (GMT+9) on the 1st of August.
Lottery Ticket Allocation
Users will be able to claim up to a maximum of 10 lottery tickets based on their BNX holdings over the 6 days (represented by X below) leading up from the 25th of July.
For example, 100 ≤ X < 200 means that your BNX balance over the entire 6-days period is kept at 100 BNX or more, but does not exceed or reach 200 BNX.
|6-day minimum BNX balance (X)||No. of lottery tickets|
|100 ≤ X < 200||2|
|200 ≤ X < 300||4|
|300 ≤ X < 400||6|
|400 ≤ X < 500||8|
|X ≥ 500||10|
Each user’s BNX balance will be recorded in a snapshot at 10 PM (GMT+9) each day. Should a user’s BNX balance drop below the minimum balance required on any given day during the 6 days, they will be put into the lower threshold. For example, User A holds 301 BNX for 3 of the 6 days but their balance drops down to 299 BNX on one day. They will now only be eligible to claim 4 lottery tickets.
Each lottery ticket has a unique number. If you claim multiple lottery tickets, the numbers will be consecutive. For example, if you claim 6 tickets, your ticket numbers might 100010, 100011, 100012, 100013, 100014 and 100016. These numbers are used in a transparent draw mechanism that will be described later.
The number of winning tickets is currently not determined as the amount of token sale on BTCNEXT because of negotiations with other exchanges, each winning ticket representing 100 USD worth of tokens.
Before the lottery date, users will be given 24 hours to select how many lottery tickets they wish to enter, with the maximum number to be based on their BNX holdings over the past 6 days. Please note that entering this ticket amount is a commitment to purchase the number of tokens corresponding to your eventual number of winning tickets. For example, if User B puts in an entry of 6 tickets and only 2 tickets end up winning, they are committed to paying for 2 ticket allocations (in, BTC, ETH or USDQ.) for the tokens.
After these 24 hours, with all tickets fully issued, we will begin randomly selecting multi-digit numbers. This process will continue until the maximum number of winners (previously set) are matched.
For lottery transparency, we propose to split the number of winning tickets. For example, if the total number of tickets is 9,100, then we divide them by 9, and in each thousand, select X number of winning tickets.
How it works:
6 Days Before Lottery: We start recording BNХ balances to determine the number of lottery tickets that can be claimed. This will continue for 6 days.
1 Day Before Lottery: A 24 hour period begins for users to begin claiming lottery tickets. For example, if person A able to get 4 lottery tickets, he can claim any amount of lottery tickets from 1 to 4.
Lottery Start Date: For lottery transparency, we propose to split the number of winning tickets. For example, if the total number of tickets is 9,100, then we divide them by 9, and in each thousand, select X number of winning tickets.
User A had 3 lottery tickets: 100037, 100038, 100039.
Based on the above results, User A now has 1 winning ticket: 100037, and will pay 100 USD in BTC, ETH or USDQ for 1 allocation of Q DAO tokens.
User B had 4 lottery tickets: 18942, 18943, 18944, 18945.
Based on the above results, User B now has 2 winning tickets: 18942 and 18945, and will pay 200 USD in BTC, ETH, USDQ for 2 allocations of Q DAO tokens.
This lottery model is used by various traditional stock exchanges around the world to ensure fairness and transparency. We have an offer to do like this : if your ticket wins, then you have the right to redeem tokens for 100 USD for BTC, ETH or USDQ.
Risks and Considerations
There are risks and trade-offs in any model. Here we describe some of them.
The daily snapshot may create some fluctuations in BNX trading before and after the snapshot time. Our experience indicates the side effects should be minimal. Other market participants may view this as an opportunity, and countertrade to even out the fluctuations.
Holding BNX does not guarantee an allocation.
The opportunity to buy tokens will be determined by random drawing
We do not know the % chance of winning ahead of time. This is driven purely by market demand. Current indication suggests demand is high, and the chance of winning is low.
There are significant risks. You are responsible for your own decisions. You should do your research and understand each project completely before taking any actions. If in doubt, stay out. You are not forced to participate in any Q DAO events.
We also strongly recommend that you don’t hold BNX just to participate in our events. If you don’t want to hold BNX otherwise, then please don’t hold BNX.
Head of legal department in Platinum