In a blog post uploaded by CEO Tawanda Kembo, Golix have finally shared some of the statistics from their just ended token sale. As we speculated earlier this week, the Cryptocurrency exchange failed to meet their target of raising $32 million from the ICO but they did manage to sell the bulk of the coins they had on offer, so it’s certainly not all gloom and doom.
Not so bad…
Considering that the Token Sale that Golix had was hosted in the aftermath of the Reserve Bank of Zimbabwe’s crypto ban, the fact that they managed to sell 65% of the GLX Token they had reserved for the public is a positive sign. Kembo said:
Our tokensale which started on 1 June 2018 ended on 25 July 2018 at approximately 12:00pm CAT. Out of a total of 637,120,048.5 GLX, we sold 415,519,188 GLX.
In terms of specific amounts, Golix did not disclose what they ended up making but they did share some other information that will be interesting to those invested in the crypto space in Africa and Zimbabwe. Distribution of the 415 million tokens sold will begin on the 1st of August and Golix is calling on all those who will be receiving tokens to verify their identity and provide an Etherium address through the site that facilitated the token sale. The distribution phase is supposed to be done and dusted by the 6th of August.
The remaining 35% of GLX Tokens will begin to be distributed later this week and the CEO said:
Close to 35% of the tokens that were reserved for the tokensale were unsold. As we promised in our Whitepaper, we’re going to distribute the unsold tokens to existing tokenholders.
As to how the distribution of these unsold tokens is handled, Kembo gave a detailed explanation of what will happen going forward:
Unsold tokens will be locked in a smart contract and will be distributed to tokenholders that opt to lock their tokens too in this smart contract too. Here’s how it will work:
- On 7 August 2018, we shall lock all the unsold tokens (221,600,860.5 GLX) into the smart contract and publish the contract’s public key.
- This smart contract distributes these tokens annually, over a period of 4 years and with a 1 year cliff. This means that, exactly one year after 7 August 2018, one quarter of these tokens will be distributed and this will keep happening until the tokens run out (after 4 years).
- These tokens will only distributed to the sending addresses of wallets that send Golix Tokens (GLX) to this contract public key. And the vesting rules will apply For example, if you send 100 GLX to this public key, after 1 year, you get 25 GLX (plus a percentage of the unsold tokens), and the next year you get back another 25 + some unsold tokens, and so on. Going forward, we shall call this process of sending your tokens to the smart contract public key, staking.
- Unsold tokens will be distributed on a pro rata basis, meaning that if one person stakes 1 token, she will get her 1 GLX back plus all 221,600,860.5 GLX that’s unsold back to the wallet she used to stake that 1 GLX after 4 years. If 100 people each stake an equal number of tokens, they will each get their tokens back, plus an equal share of the unsold tokens (i.e. 221,600,860.5 / 100 each). If many people stake an unequal number of tokens, they will each get their tokens back, and they will get a proportional percentage depending one how many tokens they stake in respect to others.
- If you stake your tokens, you will not be able to spend them until the next anniversary of 7 August 2018 and even then, you’ll only be able to stake the percentage that has vested.
- Staking will only be possible from 7 August 2018 at 12:00 CAT to 13 August 2018 at 11:59 CAT. We shall announce the smart contract public key just before 12:00 CAT on 7 August 2018.
- If, like us, you believe that Golix is going to continue to grow and be successful, and you want to hold your tokens over a long period of time, then, then you want to stake as many tokens as you can afford to -it’s a good deal.
Where will the token be traded
Golix are still in talks with other exchanges as to where the GLX Token will be traded but they did set a date for when they will begin trading the GLX Token. At 1400 hrs CAT on the 14th of August trading of the Golix coin will commence.
Use cases of the GLX Token
The Token does not seem to have many use cases right now apart from trading on the Golix exchange. In the statement released by Kembo, I could only see one use case:
Our business model is to charge fees for the services we provide. We have published our fee schedule on our website. For some services (e.g. listing other tokens) we shall charge exclusively in Golix Tokens (GLX). For others fees (exchange-related transaction fees), we shall give customers an option to pay their fees with Golix Tokens (GLX) and give them a discount for doing so.
We shall waive fees entirely for exchange-related transactions made by anyone who is holding 100,000 GLX in their Golix Wallets at the time of the transaction
For now, the use case for the GLX Token will be related to transacting on the Golix Exchange, which is now operational in over 5 countries. This is not necessarily a problem as more use cases can come in future but I was certainly hoping the token would offer more from its outset.
What’s next for Golix from here?
If you’ve read any documentation from Golix (e.g their whitepaper) you’ll know that their vision is to spread across Africa and they are still preaching the same story:
At Golix, we care deeply about giving every person in Africa financial autonomy and we believe that the best means to that end is just making it super easy for anyone on the continent to buy and/or sell whatever cryptocurrency they want to. As long as golix.com is not yet available in your country, or your favourite cryptocurrency is not yet tradable on Golix, we still have a lot of work to do.
Golix have said that they are also now open to help other companies which are looking go through ICO processes as they have just experienced that whole process. In this process of ‘tokenising’ if Golix are in love with your project they are also willing to invest in these projects so this seems like good opportunity for companies that are considering to go through an ICO in the near future.
Tawanda Kembo is a Zimbabwean software developer, startup entrepreneur and founder of Golix, a cryptocurrencies company. Before Golix, Kembo founded Virtual Bank, I Paid A Bribe (Zimbabwe) and other technology companies. Read More About Tawanda Kembo
Golix is a Cryptocurrencies exchange in Zimbabwe. Golix was founded in December 2014 and was initially called BitFinance while their exchange was called Bitcoin Fundi. The company was founded by Tawanda Kembo and Verengai Mabika. In May 2018, Golix was ordered to shut down operations... Read More About Golix