SmartcapTM is a token sale algorithm that Peer Mountain designed to keep its ICO fair and transparent.
At Peer Mountain, we want everyone to enjoy all the convenience and benefits of digital transactions with complete peace of mind. The token of our circular economy of trust, the Peer Mountain Token (PMT), will be available soon after the pre-sale whitelist closes.
Space on the whitelist is limited, so sign up now for your chance to get a 25% discount on PMT during the first round of our ICO!
To keep our ICO as fair and transparent as possible, we’re introducing an important innovation: our SmartcapTM algorithm, which optimizes the ICO process and matches the amount of tokens sold with demonstrated demand.
While designing the PMT sale, Peer Mountain Founder and CEO Jed Grant and advisor Prof. Jos Van Bommel, an expert in IPO securities, liquidity, and valuation concluded that current token sale methods have several deficiencies:
- The traditional pre-sale is opaque, secretive, and lends itself to front-running and insider dealing.
- The open cap creates a greed effect that leads to irresponsible allocation of capital.
- The fixed cap creates a paradox whereby the sale organizers must guess the exact market demand prior to launching the sale; if they guess wrong, they either leave the market unsatisfied or have an “unsuccessful” token sale or ICO — even if they raise substantial amounts of capital.
To ensure a fair and transparent ICO, Jed and Jos developed Peer Mountain’s groundbreaking SmartcapTM algorithm, which is embodied in our token sale’s smart contract. Here’s how it works:
There’s no hidden pre-sale; rather, there is a pre-order phase for whitelisted buyers. The SmartcapTM sale works with a price discovery algorithm that is fairly simple. Batches of tokens are released for sale as orders are accepted.
The first batch will consist of 2,000,000 PMT. During the initial round of the Peer Mountain ICO, the tokens will be available at a 25% discount (sign up now for your chance to get this discount).
Once a batch has been fully ordered, the orders in the batch are organized from biggest to smallest and filled that way. Once the order filling process is complete, the next batch of tokens is released at a slightly lower discount. The batches get bigger and the price moves upwards with each batch.
When a batch doesn’t sell out in 30 days, we’ve reached the SmartcapTM. All the orders get filled at the price of the previous batch. This means that everyone gets in at a price that works for them, and tokens are sold until demand is exhausted via price discovery.
Our SmartcapTM sale accomplishes many of our objectives:
- It eliminates the opaque pre-sale and brings transparency to the whole token sale process.
- It provides a fair price discovery mechanism for the sale.
- It increases the supply and price of tokens algorithmically until demand / price are satisfied.
- It rewards large investors by placing them at the front of the queue in each round.
- It enables the sale to be capped at a market-determined amount.
There will be a pre-order phase for whitelisted participants to place pre-orders for the sale, followed by an open token sale that we expect to run for four to six rounds.
We intend to follow best practices for the most compliant and well-run ICO and token sales to date, with maximum transparency. The token sale will accept Ether, and it will be an ERC-20-compatible token (so within the standard) on the Ethereum network.
To take part in our pioneering ICO, register for your spot on our token sale pre-order whitelist.
Learn more about Peer Mountain, PMT, and SmartcapTM in our white paper.
And finally, join our active and engaging Telegram channel to talk with the Peer Mountain team and community: https://t.me/peermountain
Great concept, well done guys.
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