FunFair Company Update 16th October 2017
1. New hires.
2. Sponsorship of Devcon3.
3. Replacement strategy for phase 2 token sale.
1. New Hires
It is with great pleasure that FunFair can announce the appointment of David Greyling as Chief Operating Officer. David joins us from his former position as Director of International at William Hill PLC, one of the largest gaming companies in Europe, where he was responsible for £130m net revenue across their Regulated and Unregulated International markets.
In addition, James Harrison joins us as interim Director of Corporate & Regulatory Affairs after an initial stint as a consultant and will report into David. Together they will focus on establishing an efficient business structure and operating model in readiness for an H1 2018 commercial launch to casino operators and affiliates.
They join co-founders Jeremy Longley (CTO) and Oliver Hopton (Senior Developer) enabling them to increase their focus on the technology and development side of the business.
At the present time, FunFair is growing fast and is about to exceed thirty people operating from its offices in Camden, London – making it one of the largest and fastest growing Ethereum based development companies.
2. Sponsorship of Devcon3
FunFair is pleased to be a Global Sponsor of Devcon3 (Ethereum Foundation’s annual developers conference), which starts on November 1.
We will be sending our team out to Devcon3, who are all looking forward to engaging with the Ethereum community and at the same time attend the amazing presentations to learn more about the innovative and exciting work going on in the Ethereum development space.
3. Replacement strategy for Phase 2 token sale.
After our oversubscribed Phase 1 token sale back in June, we had intentions of a second / phase 2 sale during September/October that would sell the bulk of the 11B tokens that we had issued and allocated for this occasion.
Instead, due to a combination of factors; regulatory, commercial and legal issues including a highly changing world marketplace – we’ve decided to scale back our token sale and cancel the original Phase 2 plan as originally envisaged.
We’ve decided to spread out the sale over a longer period of time (five years), so that instead of selling almost 11B tokens in one go this October, we’re going to limit it to 1B tokens each year, for nearly five years. In addition, we reserve the right to burn further tokens if we decide they’re not required at the end of 2018 and each subsequent year.
The new plan will provide suitable liquidity (for product investment or M&A) over the long term, at a significant lower issuance rate, rather than do it all at once with the large issuance of circulating tokens that the previous plan had entailed.
So to summarise:
We’re allocating 1.4% of the 11.173B tokens (0.16B) immediately to the circulating tokens that will become company assets. This raises the current amount of circulating tokens from 3.84B to 4.00B (4%), and allows the company to incentivise new hires, to spend FUN tokens on some contractors who wish to be paid that way, and to fund and incentivise outside companies accordingly where they wish to be paid in FUN instead of in cash. We prefer contractors to be aligned with our interests and paying them in FUN is a good way to do this. CoinMarketCap was informed of this change last month and the circulating token number has been correctly reported for the last couple of weeks at 4.00B.
We’re allocating 42% of the 11.173B tokens (4.7B) that we’re putting into cold storage and will restrict token sales to a max of 1B per year for four years, and an additional 0.7B tokens for the fifth and final year. These tokens will be sold to institutions or large token buyers to minimise overheads and retain highest compliance, via OTC and market trading. The tokens will be sold as close to market price as possible.
We’re allocating 55%, the majority of the 11.173B tokens, to be burned. This equates to 6.173B tokens that will all be burned on October 18th (now we are clear of the Metropolis’ Byzantium hard fork) at 3pm GMT (4pm British Summer Time).
Burning tokens has the effect of taking them out of issuance. They will never become circulating tokens.
The tokens will be sent to the infamous burn address of 0x0, and the token contract will automatically reduce the total number of tokens from 17,173,696,075.7222 to 11,000,000,000 in the ‘Total Supply’, as detailed on Etherscan and ERC20 reporting tools.
The Burn mechanism we’re using for this has been in-built into the token contract since day one, and will demonstrate the effectiveness of burning tokens that can be accomplished on the live platform. To remain compliant with regulations where our intention is to burn tokens that have been used as fees (in a consumptive way like tickets for transit), we intend to take additional advice but should this prove problematic for compliance, we’ll work on alternative strategies prior to first use.
Thanks for reading!
Jez San & the FunFair Team