Last Revision: November 21, 2021 Article Status: Published Note: This page may get updated if there are changes to previous information.
$SIPHER Initial Public Sale
It's official! The $SIPHER Initial Public Sale will be held on 6 December 2021, on our https://sipher.xyz/ website!
Before we discuss about the $SIPHER initial public sale, we would like to recall the concept of network effect & distribution of economic value. Bitcoin’s network effect derives from more people considering it a store of value, which in turn, incentivizes miners to secure the network. Ethereum’s network effect derives from developers who deploy apps — each becomes a building block that other developers can compose into higher order services, driving increased usage, and demand for $ETH as quoted from https://future.a16z.com/crypto-business-model/.
We believe Sipher's network effect will come from our community of gamers, streamers, guildmasters, developers, entrepreneurs, entertainers, traders and Sipheria's adventurers, and with each newly onboarded member, we can foster more interaction, more chance encounters, more fun & pleasure, driving use and demand for $SIPHER. Ultimately, the value of Sipher and $SIPHER, is in the hands of our community.
Crypto networks like Bitcoin and Ethereum are the very first community-owned-and-operated platforms at scale. Following the greats, we believe through $SIPHER, we will be able to leverage this to build & distribute economic value, build network effects and generate value for our contributors, supporters, backers, and our communities.
Tokenomic of $SIPHER token
The $SIPHER token lies at the heart of the Sipher ecosystem, helping coordinate and align incentives of stakeholders involved.
The Sipher ecosystem is designed to be progressively owned, contributed, operated, maintained and upkept by the community consisting of its players, guildmasters, streamers, fans and builders. $SIPHER is designed to be the tool for distributing the value of and power over any particular operational instance of the Sipher Vault.
$SIPHER will only work that way if our builders, players, guildmasters, fans and users who acquire $SIPHER know how to use it as a community mechanism, developing social understandings that give $SIPHER meaning and value. Although the purposes of $SIPHER are thus aspirational and eventually beyond any single party’s control, we will seek to give $SIPHER features that will encourage the Sipher community to use it in the way that will benefit ecosystem as a whole in a sustainable manner.
Token Distribution and Vesting
The total supply of tokens to be minted will be 1,000,000,000 $SIPHER. These tokens will be distributed based on the various vesting schedules since the Token Generation Event (TGE) to the stakeholders within the ecosystem.
How will the $SIPHER Initial Public Sale be Conducted?
A fair launch is critical to building trust with your community in the early stages of a project’s life cycle. Without a fair launch and the potential of bots front running, token launches can become a disaster, with potential community members lost forever.
The ideal fair launch can vary from project to project depending on their aspirations and goals. For Sipher, a fair launch should strive for the following goals:
- Sniper Bot and Bidding Bot resistant
- No pumps and dumps by whales
- Equal and fair market buy-in price
- Open & Transparent
- Grow our community by allowing as many new community members to join as possible. A successful game needs hundreds of thousands of members.
Concerns with Commonly Used Token Sale Methods
There are various methods or mechanisms available in the space that are used to launch tokens by various projects, but they have inherent problems that are not suitable to achieve our goals. For instance, some of these issues include: potential liquidity issues leading to extremely volatile price actions, imperfect token price discovery, and possible lack of project legal and compliance accountability.
- Gatekeeping → Launchpad based IDOs inherently favor the Launchpad's existing community - as ownership of the Launchpad's Token is usually required to participate in a Token Sale. This has a gatekeeping effect - whereby a good portion of our community members would be unable to participate.
- Unequal Token Purchase Prices → Normally, due to the small number of participants allowed into these types of Token launches, compared to the total demand, the buy-in prices of other parties who were unable to join and are forced to purchase on secondary markets are unevenly skewed. This means that the limited pool of participants that were allowed an allocation due to holding the Launchpad's Token can purchase at lower prices, and then those remaining (majority would potentially be our community members that don't possess those Launchpad Tokens) are forced to purchase at higher prices on the secondary markets.
- Bot Manipulation and Edge → Usually, following a Launchpad Based Initial DEX Offering, a Liquidity Pool (LP) would be set up on Decentralized Exchanges at the same prices that were offered on the Launchpad. These LP creations are heavily botted, usually with Bots ramping up the prices of Tokens indiscriminately beyond fair market value in seconds. This is possible by Front-Running transactions, in which lots of gas is wasted, and runs the risk that some of our community members would buy Tokens at extremely inflated prices.
- Bot Manipulation and Edge → A traditional IDO would mean that a Liquidity Pool (LP) would be set up on Decentralized Exchanges for purchase. Once again, as these LP creations are heavily botted, usually with Bots ramping up the prices of Tokens indiscriminately beyond fair market value in seconds. This is possible by Front-Running transactions, in which lots of gas is wasted, and runs the risk that some of our community members would buy Tokens at extremely inflated prices.
- Unequal Token Purchase Prices → Due to the format that Tokens are introduced into the market - it usually leads to Bots being the main beneficiary of buying Tokens at the lower starting price. Similar to the Launchpad IDOs described above, this translates into real participants having to purchase the tokens at higher, or even highly inflated prices.
- Gatekeeping → These types of Token Sales recently receive a huge number of interested participants, but will generally lead to having let down a big portion of their community members, as only the 'lucky' ones would be able to join the Token Sale.
- Unequal Token Purchase Prices → Normally, due to the small number of participants allowed into these types of Token Raises, compared to the total demand, the buy-in prices of other parties who were unable to join and are forced to purchase on secondary markets are unevenly skewed.
- Bot Queue Manipulation → With sufficient tech knowhow and/or slightly illegal means, the queue system can be circumvented, with a single person queuing up with multiple accounts, reducing the chances that actual community members can take part in the Token Sale.
In searching for a solution to address the issues discussed above which limits fair participation, we have decided to conduct this public sale via our own customized version of the Initial Bonding Curve Offering (IBCO).
The goal of IBCOs is to solve the aforementioned problems by utilizing bonding curves of Decentralized Exchanges (DEXs).
In our $SIPHER Initial Public Sale, 40,000,000 (4%) of $SIPHER tokens will be pre-minted and will be sent to the Token Sale Smart Contract. The price of each $SIPHER Token will start at $0.36, and given the bonding curve method used as part of the IBCO, each time funds are contributed, the settlement (final) price of the token will increase. This is following demand/supply theory. Alternatively, withdrawing funds will lower the settlement (final) price of the token for everyone.
IBCOs follow traditional economic theory in the sense that an asset is worth what someone would be willing to pay for it. In theory, the price of an asset (token in this case) should reflect the balancing point or equilibrium reached between market participants — those who want to sell and those who want to buy. Contrary to an IDO, the final price in an IBCO is not established by anyone, but rather determined by the market. The starting price is just a means to get the market started, but the final price is determined by market participants.
Advantages of IBCOs
- Automated and decentralized mechanism
As stated previously, an IBCO relies on a mathematical and programmatically automated mechanism. More specifically, it relies on Smart Contracts, meaning that they do not require manual oversight or management by a centralized entity.
- Equal price for all participants
Given that the final price is determined by the market participants, the purchase price for all participants will be the same. Everyone will receive their token allocation based on the percentage contributed to the funds, which will be calculated based on the Total Token Supply and Final Token price (determined by the market).
- Flexible time and collective contributions
There's no need to rush in at the beginning and try to get in the cheapest price as possible, given that all contributions will lead to the final token price that all contributors will pay. It is a collective effort. Note that Sipher's IBCO will have a deposit period in which participants can contribute or withdraw funds, that will last 72 hours.
- No bots or front-running
Due to the nature of an IBCO, there is no advantage for those that contributes funds right at the beginning. There is no point in utilizing bots or other similar automated methods to contribute funds, given that the final price is set by the market participants within the allotted time of the IBCO.
- Option to withdraw contributed funds
As the Token Prices will constantly be changing, we understand that there is a possibility that the Token Price may reach a point where participants may no longer wish to take part in the IBCO. Within the contract, we will be providing an option for Participants to withdraw their committed funds at any point during the 72 Hours that the IBCO is live, with some withdrawal restrictions applied to contributions made above 1 ETH in total value. The reason for these restrictions are on the basis of deterring price manipulation by large capitals. (This is discussed in the subsequent point).
- No Whale Pump & Dumping or Price Manipulation
We will be implementing a 'conviction curve formula' within our IBCO contract, specifically to deter price manipulation by well capitalized parties. Effectively, the more $ETH you contribute to the contract, the smaller the percentage of funds that you will be able to withdraw or in other words, the higher your locked up amount will be remaining in the IBCO contract.
The exact breakdown of the percentage of funds contributed to the contract that is subject to the lock-up will be clearly displayed on the IBCO website via our easy to understand User Interface prior to your contribution during the IBCO, so we urge interested parties to consider carefully based on the information provided during the Token Sale.
This mechanic is critical to prevent whales to commit large sums of $ETH to the contract with the sole intention to inflate the price of the $SIPHER Token, deterring our community from taking part in the IBCO, only for them to then withdraw the bulk of their contributions at the very last minute, which would allow the whales to acquire majority of the $SIPHER tokens committed for IBCO at a cheaper price than the actual fair market value.
The Public Sale Interface
Given current worldwide regulations on crypto, as advised by our legal advisors, nationals from below countries are not allowed to participate in our $SIPHER Initial Public Sale. These countries include: United States of America, Albania, Barbados, Burkina Faso, Balkans, Belarus Cambodia, Cayman Islands, Cote D'Ivoire (Ivory Coast), Cuba, Democratic Republic of Congo, Haiti, Jamaica, Malta, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Senegal, South Sudan, Syria, Uganda, Yemen, Zimbabwe, Iran, Iraq, Liberia, North Korea, Democratic People's Republic of Korea (DPRK), Jordan, Mali, People’s Republic of China, Hong Kong SAR, Macau SAR and Turkey.
We are terrible sorry for this news, and for the residents of these countries who are willing supporters of Sipher. The current legal frameworks surrounding crypto simply do not allow us to take risks that could affect the potential long term success of Sipher and our community.
How To Take Part in the $SIPHER Initial Public Sale
If you would like to learn more about how to participate, stay tuned for our video instruction within our Discord, our Atlas and our official news within our Medium. A detailed video tutorial will be shared closer to the $SIPHER Initial Public Sale date.