CommPRO Editorial Staff
CasperLabs, a Proof-of-Stake blockchain, is collaborating with BitMax.io, a Singapore registered digital asset trading platform, to conduct its private validator token sale in the form of an Exchange Validator Offering (“EVO”).
CasperLabs will conduct its validator token sale in collaboration with BitMax.io. The purpose of this Exchange Validator Offering (“EVO”) is to promote greater network decentralization by providing fair access to retail participants at the project’s earliest stage investment opportunity.
$3MM worth of CLX tokens, the native cryptographic token of the CasperLabs blockchain, will be available for sale in the EVO which will be divided into three rounds, with bonus tokens available in the first and second rounds. Registration to participate in the CasperLabs EVO is currently live on BitMax.io with an open funding period from March 23 to April 6.
The price at which EVO participants can purchase CLX tokens is $0.01. Public Sale distribution will be conducted via an auction with a minimum reserve price of $0.02.
All EVO participants will be part of the founding stake on the Genesis Block of the CasperLabs network and an integral part of the network launch and initial security.
CasperLabs has made no token offerings to date and all funding has been conducted via a standard Series A equity financing. The decision not to sell tokens was based on ensuring open access to the underlying system.
Since first introduced, Proof-of-Stake (“PoS”) blockchain networks have historically seen staking dominated by institutions and large token holders (“Whales”). Whales are often early stage investors of a given PoS project with large allocations of tokens vested at mainnet launch. Such concentration of staking power and “Monopolization of Consensus” is troubling because it consolidates control of the blockchain network to a small handful of validators. This can harm the project in various ways, including concentration of voting power, single points of failure for malicious network attacks, and network instability. This runs counter to the proposed aspirations of many PoS to be truly permissionless, decentralized, and secure.
CasperLabs, together with BitMax.io, is taking a novel approach to challenge the status quo of staking power consolidation amongst institutions by conducting the industry’s first EVO.
Three types of token rewards will be associated with the EVO: (1) early participation rewards, (2) staking rewards, and (3) transaction fee rewards.
Source: Blockchain Wire