What is MeiCoin and what is it for?
MeiCoin is a token that may be used to exchange services within our messaging app Mei. MeiCoin’s symbol is MEI and is an ERC-20 token on the Ethereum blockchain. Services in Mei include interactions with our AI assistant and communication with other users and potentially researchers. The token is meant for utility within our app and is not a digital currency, security or a commodity. The below FAQ are for information purposes only and we recommend that you refer to the White Paper for more detailed information.
Is MeiCoin transferable? Will it be traded?
MeiCoin is transferable. In the future, it may be traded on exchanges but we currently have no direct control over this and whether it is traded elsewhere or not. We provide the foregoing information solely as a means of reducing the inquiries we receive directly.
What does ownership of MeiCoin entitle?
Ownership of the tokens carries no rights other than the right to use them as a means to obtain services on the Mei App, and to enable usage of and interaction with the platform. The tokens do not represent or confer any ownership right or stake, share or security or equivalent rights, or any right to receive future revenue shares, intellectual property rights or any other form of participation in or relating to the Mei App. The tokens are not refundable and are not intended to be a digital currency, security, commodity or any other kind of financial instrument.
How is MeiCoin priced during this initial token sale?
Each token is sold at a price slightly higher than the previous. This pricing mechanism incentivizes early buyers of MeiCoin and simplifies the decision-making process of whether and when to buy. It also minimizes the number of arbitrary determinations we have to make on pricing and timing. Other pre-sales commonly price by tiers, which allows buyers to optimize and strategize. Our pricing will instead be determined simply by buying order.
Unfortunately, this unique pricing structure makes other things, like knowing the exact price, a little more complicated, so we’ll try our best to explain. Pricing is illustrated in the following chart:
There are 3 rounds of this initial token sale: private pre-sale, pre-sale, and crowdsale (if needed).
We are currently in the Pre-Sale round which will last until we fully launch the newest version of the Mei App (expected in Q3 2018). The first token of this round was sold at $0.027. The very last token sold before we launch will be sold at $0.074. Every token sold in between will be priced according to this formula:
Token (n) = $0.027 * (1 + 1/ the total number of tokens sold in this round) ^ (n-1)
Since we do not know how many tokens will be sold in this round, buyers will not know the exact number of tokens they purchased until the day we launch, or we reach our cap of selling 200 million tokens, whichever is first. Buyers in this round will receive the number of tokens as if priced at $0.074. At the end of the round, once we know how much was sold, buyers will get bonus tokens that will effectively reduce the price they paid per token to our formula.
Why did you make pricing so complicated?
Since we don’t know what our services will be valued at, we tried our best to come up with a pricing mechanism that is both flexible and fair, while minimizing the number of variables where we make arbitrary decisions. By making each token priced more than the previous, we will be fair to early adopters who are taking more risk. By allowing the pricing increment to be determined by demand, we allow flexibility on how many tokens are sold before they get to the pricing cap of each round. In general, the earlier and the more tokens are sold, the cheaper they are.
We plan to peg our intelligence services to about $0.20 per token. This means buyers in the Pre-Sale will receive a discount of 63-86% to the “fair value” of each token. Buyers in the Crowdsale will receive a 0-63% discount, depending on when they buy the token.
As soon as our tokens are sold, they will have immediate value for exchange for services within our app, making MeiCoin a true utility token and this pre-sale a true pre-sale. We decided to time our pre-sale around the time of our app release, expected in the 3rd quarter 2018 (by September 30).
Why do the token sale dates and app launch roughly coincide?
We want to give the opportunity for early adopters and the average person to really benefit if we are successful. If we conducted our token sale well before launching our app, we would be like many other companies who have yet to build the product and become less incentivized to deliver on their promises as they’ve already received the funds. And if these tokens aren’t usable when they’re sold, they are not a true utility token. If we conducted the sale after launch, and our app/ecosystem gains rapid adoption, the average person may not get the opportunity to buy a meaningful amount of tokens or the tokens may become too expensive.
By conducting our sale and launch of the app at roughly the same time, early adopters could accumulate tokens before their full value is realized by the public.
Why are you selling only 30% of the tokens?
The average initial token sale is 54% of total token supply. We want to show buyers that we have skin in the game, by holding more of the tokens than most others. The more valuable the token becomes, the more valuable the token pool we retain. If we sold say 80% of the token supply, we would have less incentive to make sure the remaining 20% becomes valuable.
Why are your team vesting periods so long?
Our team shares vest 10% at the time of the sale, so as to give some liquidity to our team who has worked so hard to build this product. 30% will vest each year for 3 years. Typically, team shares in other token sales vest 6-12 months. That means after this period, the team will get their tokens and can sell all of it. We want to retain our team and show that we’re in this for the long term.
Is there a maximum number of tokens one can buy?
Since we are selling a limited supply of our tokens, we are contemplating putting in place mechanisms which will prevent one party from owning too much of the token supply and having too much influence over the ecosystem. We will make determinations on this as we go through the sale process.
Is there a soft cap?
We truly believe in the potential value of the ecosystem we’re proposing so we will be working on building it regardless of the number of tokens issued as part of this token sale. Therefore we do not currently think it is necessary to impose a minimum sale amount.
Will you sell tokens directly to the public outside of the initial token sale?
We expect to have a substantial portion of demand for our services coming from researchers and polling organizations. At this time, we’re contemplating whether or not to sell tokens directly to buyers after this initial sale. On one hand, selling directly at a fixed price undermines the whole concept of market pricing. On the other hand, requiring researchers/pollers to buy tokens on a secondary market may dampen demand. In evaluating whether we do sell direct, we will always keep in mind the market value of tokens and do everything in our power to maximize value to our tokenholders.
Where can I find MeiCoin transactions?
Phase 1 (Private Pre-Sale): Our contract address can be found on EtherScan. Please do not send ETH to this address because this contract requires authorization.
Phase 2 (Pre-Sale): Currently underway, contract details will be provided after approval on the Whitelist.