We are thankful for the support of our backers during the private presale. It is through your support that we were able to develop, audit, and launch the bZx protocol to the Ethereum mainnet. At this stage the protocol is fully functional and has acquired a thriving ecosystem of technology partners integrating the protocol into their own projects. The success of the protocol is no longer in our hands, but in the hands of a wider, decentralized community.

We are now at the stage where we are ready to conduct a public presale available to individuals worldwide. This token sale is unlike any others before it, a completely novel model that we hope gives inspiration to other teams. We have set up our token sale in such a way as to demonstrate that purchasers of our tokens are truly interested in the consumptive rather the speculative value of the tokens. Before selling tokens to the public, it was important for us to create a fully working product that could drive value to token holders through use of the protocol. Without a fully working protocol and means to consume the tokens, there would be no way for us to demonstrate any use but a speculative one.

These tokens have a unique property that other tokens sold to the public do not typically possess: they are locked and non-transferable, except when powering the bZx protocol. They will remain locked to transfers outside the protocol, until the public sale concludes at a future date. The principal consequence of this is that there will be no secondary market for the tokens. In the absence of a secondary market, speculators will be unable to derive value from them. The token has a singular use: to power the bZx protocol.

In order to use the bZx protocol, individuals must pay trading fees to the relays denominated in the BZRX token. Without access to the BZRX token, the smart contracts would be unavailable for use. We have devised two ways to facilitate access to the protocol:

  1. Traders and order takers may pay trading fees directly in ETH, causing BZRX to be minted into the wallet of the relay
  2. Traders and order takers may buy BZRX tokens from the bZx portal.

Individuals choosing to buy the tokens from the portal will receive a presale bonus, reducing the trading fees paid. It is important that token distribution converges upon a representative share of stakeholders. Individuals buying from the portal are passively holding the tokens, giving them a stake in the protocol. When on-chain governance becomes a reality, having traders in possession of the token will have the protocol governance better aligned. It is for this reason that we offer them a presale bonus.

The public presale contract is live right now. Simply go to portal.bzx.network and click “BUY TOKEN” to purchase the tokens using your MetaMask, Ledger, or Trezor wallets. The process is as simple as sending a transaction. For less advanced users, a step-by-step guide will be published in the comings days.

Token Liquidity

The tokens will continue to be locked until we launch our official public sale, after which the tokens will be unlocked and can be freely transferred to other wallets or exchanges. The date of the public sale has not yet been set. When it has become clear that the tokens are demanded for their utility, we will conduct the public sale and remove the restriction on token transfers.

Token Metrics

In the interest of full transparency we are releasing our token metrics. For the purposes of future governance, it is important that all stakeholders have a full accounting of the distribution of tokens. During the private presale we raised a total of 967 ETH, selling each BZRX at a price of .000073 ETH per token, plus a token bonus of 15%. During the public presale we will allow 5,000 ETH worth of tokens to be minted, also at a price of .000073 ETH per token, but with a smaller token bonus. In total, counting the private presale, public presale, and public sale, we aim to raise a total of 36,500 ETH (7.3MM at $200/ETH) by selling 500,000,000 BZRX tokens.

Airdrop

In the near future we will be conducting an airdrop of the BZRX token. We believe that airdrops are a use case for tokens that give protocols with tokens an advantage over protocols without. Tokens are a powerful mechanism for quickly creating communities of individuals with incentives aligned with the protocol itself. Using airdrops, a protocol with a token can quickly create interest and awareness in the underlying protocol itself. We hope that the use of the airdrop will drive liquidity to the underlying protocol as more people become aware of its powerful capabilities. Please stay tuned for further announcements relating to the details of the airdrop.

About the author
Kyle J Kistner
CVO @ bZx. Product, Protocol Design, & Token Economics.