http://blog.swarmcorp.com/2014/08/02/swarm-vote-two/
Quote
SWARM VOTE TWO
From the outset, Swarm promised Real Crowdfunding™, this means not just donating to a project, and not just pre-ordering a product, or even buying merchandise. Real Crowdfunding promises to engage you in the projects you back, as never before.
Blockchain 2.0 technology has enabled Swarm to operate in a transparent and incorruptible fashion, and we promised to enable our backers to contribute to every significant aspect of our operation.
Nearly two weeks ago, we communicated the conclusion of our Phase I crowdfunding round. Thanks to all of you, we raised in excess of $1m USD to help build out the complete feature set of this revolutionary crowdfunding platform.
ABOUT SWARM CRYPTOEQUITY™
Your contribution and participation in our project is represented by SWARM Cryptoequity. It is fundamental to our platform that you think of a Swarm ‘coin’ as not a traditional token of currency. Whilst a SWARM Cryptoequity does not represent a shareholding or security, it is in essence something more akin to a share in an evolving collaborative project.
Our description of Cryptoequity when interviewed is precisely this; Cryptoequity is to traditional equity what Cryptocurrency is to traditional currency.
Where Cryptoequity represents a quantum change over traditional equity is in TRUST.
The ‘rules’ by which Cryptoequity behaves (attributes) are contracted on the Blockchain.
You may view the attributes of the SWARM or SWARMPRE Cryptoequities on Blockscan
SWARMPRE:
LOCKED = FALSE
24M (Total issued to date)
SWARM:
LOCKED = TRUE
100M (Total issued to date)
For the purpose of this post, we’ll save some of the other features and attributes of Cryptoequity, however what is particularly relevant is the concept of LOCKING and total issue.
Had you purchased during the Swarm crowdsale, you may note that we issued in return, the Cryptoequity SWARMPRE. This coin is not LOCKED. This means, that we (the issuer) may at any time increase the number of coins in circulation. This issue of SWARMPRE enabled us to operate in a more flexible manner, with regard to the distribution of SWARM cryptoequity at the conclusion of our crowdfunding campaign.
It was always our intention at the conclusion of our crowdfunding to FULLY distribute the SWARM Cryptoequity. So, ultimately had we eventually sold only 50mm SWARMPRE, then we would have distributed 100mm SWARM as dividends to SWARMPRE holders, meaning ultimately the resultant SWARM:SWARMPRE holdings would be at a 2:1 ratio.
During our crowdfunding campaign it was repeatedly communicated to our team that backers would prefer us to use funds raised to return to our Swarm bat-cave and focus on further developing the platform.
In response to our backers’ suggestions, we issued the worlds first Cryptoequity powered vote.
ABOUT SWARM CRYPTOVOTE
An important aspect of the Swarm platform which differentiates us from first generation crowdfunding concepts is that we believe the continued participation of backers is a desirable outcome for all parties. Our platform aims to deliver an innovative set of tools to shift the capabilities of startup enterprise to extend participation in corporate governance to their backers.
A core aspect of our governance toolset is the Cryptovote, which leverages the transparency of the Blockchain to enhance trust between backers and new projects. We use this tool to govern Swarm.
ABOUT SWARMVOTEONE
SWARMVOTEONE enabled our early backers to decide on whether or not Swarm should continue to focus on its own fundraising or to focus on product development.
The conclusion was clear with nearly 4:1 in favour of us ceasing our fundraising activities (YES: 1416553 | NO: 374368 )
As promised to participants in SWARMVOTEONE we acted on the vote, and ceased fundraising activities on July 20th having sold approx. 10mm SWARMPRE.
This vote also provided for a further coin-powered fundraising at later stage when our platform is more fully developed.
We believe the net result of the vote was the best course of action for both coin holders, and success of the project as a whole, however it has fundamentally changed the path of Swarm, and consequently some of the plans made with regard to distribution of the SWARM cryptoequity have been impacted.
Again our community has been vocal in its’ opinions and it has lead us to the purpose of this post and associated VOTE.
ABOUT SWARMVOTETWO
Backers in a project where the cryptoequity is LOCKED, can participate with confidence, that their ‘slice of the pie’ that is represented by their cryptoequity can NEVER be inequitably diluted.
It is impossible for us (or anyone else) to ever issue more of a LOCKED Cryptoequity. This ability to limit and lock Cryptoequity issue is a fundamental aspect of the value and utility of our invention.
The SWARM Cryptoequity is LOCKED, and a total of 100 million SWARM coins have been created.
As of today, Swarm has NOT ‘completed’ its fundraising activities, however there are many who feel it is time for us to dispense with the (unlocked) SWARMPRE asset, and distribute the (locked) SWARM cryptoequity.
It is not our intention as a business to burden you with every decision, but it is clear that many of our backers (understandably) have a strong opinion as to the correct way for us to dispense the SWARM assets.
It is the explicit intention of this post to make it possible for you to fully understand the options available to Swarm with regard to the distribution of our Cryptoequity, and for you to voice your preferred approach.
infograph-vote2
You will be issued (today – August 1st) with a Cryptovote token SWARMVOTETWO. You will find this in the same counterwallet http://www.counterwallet.co which contains your current SWARMPRE cryptoequity. These Cryptovote tokens are issued 1:1, and so you should find you have the same number of votes as you have equities.
To vote, simply ‘SEND’ the SWARMVOTETWO tokens to your preferred action. Note, it is POSSIBLE for you to ‘split’ your voting to your desired outcomes.
For example: Lets say you have 10 cryptovotes, and there are 3 possible outcomes (A,B,C) to choose from:
You may, send ALL 10 VOTES to option A
You may also send 6 votes to option A and 4 votes to option C.
Whatever your preferred options, we highly recommend that you send ALL of your VOTE coins. VOTE coins which are not sent to the associated wallet by conclusion of the voting period will be considered to have abstained.
Success in this vote for Swarm, is not determined by the outcome, but by participation. We aim to achieve in excess of 50% participation.
THE SWARM CROWDSALE RESULTS:
A total of 24m SWARMPRE coins were created to support the Swarm Phase I crowdsale.
By July 20, a total of 9,592,995.78253 SWARMPRE were sold.
The BTC valuation of sold SWARMPRE at July 20 was $1.1m USD
Presently, Swarm holds a total balance of 14,407,004.21747 (unsold) SWARMPRE
EXPLANATION OF SWARM CURRENT MARKET CAP
For the sake of illustration, let’s round off the above numbers to 10m sold and 14m unsold and $1m USD raised.
In short the Market Capitalization of a company is calculated by multiplying a company’s shares outstanding by the current market price of one share.
The investment community uses this figure to determine a company’s size, as opposed to sales or total asset figures.
Source: http://www.investopedia.com/terms/m/marketcapitalization.asp
As such, at the intended 1:1 exchange of SWARMPRE to SWARM, market capitalisation can easily be calculated as:
$1m / 10m SWARM cryptoequity = $0.10 per SWARM (Market price of one share)
$0.10 * 100m shares outstanding = $10m USD Market Cap.
As outstanding stock is bought and sold in public markets, capitalization could be used as a proxy for the public opinion of a company’s net worth.
As backers of the Swarm, it is important for you to understand the PROS and CONS of the three options. It is highly likely that the value of your Swarm Cryptoequity will be affected both individually (per coin) and in total based upon the decision taken.
It is also important to understand, that we have designed all three options to provide identical impact on Swarm founder Cryptoequity holidings to that of backers.
OPTIONS AVAILABLE FOR ‘UNSOLD’ PHASE I CRYPTOEQUITY
ISSUE
Distribute 24m SWARM to SWARMPRE holders proportionately (2.4:1)
(first) BURN holdings of SWARMPRE in the vend account
Phase II raise potential:
68m * $0.04 = $2.72m
Pros:
Meets some backers’ understanding of the SWARM initial plan
Backer ‘feel good factor’ – higher number of coins in wallet
Cons:
Significant negative impact on individual Cryptoequity (coin) price
New Price = Old Price * 0.4 = approx $0.04 / SWARM --> so what? there will be more coins
Corresponding significant negative impact on Market Cap
Market Cap = Market Cap * 0.4 = $4m USD --> BLATANT LIE, market cap will stay the same
Negative impact on future crowdfunding rounds through reduced coin value --> more BS
Negative impact on coin price in secondary market --> so what? there will be more coins
BURN
Distribute 24m SWARM 1:1 with SWARMPRE
(then) BURN holdings in the ‘vend’ account.
Pros:
Closest way to simulate Swarm initial plan given change to crowdfunding rounds agreed in SWARMVOTEONE whilst still distributing SWARM Cryptoequity
Phase II raise potential:
68m * $0.084 = $5.712m
Cons:
Negative impact on individual Cryptoequity (coin) price
New Price = Old Price * 0.84 = approx $0.084 / SWARM
Corresponding significant negative impact on Market Cap
Market Cap = Market Cap * 0.84 = $8.4m USD
Negative impact on future crowdfunding rounds through reduced coin value
Negative impact on coin price in secondary market
HOLD
Distribute 10m SWARM 1:1 with SWARMPRE
(first) BURN holdings of SWARMPRE in the vend account
Phase II raise potential:
68m * $0.084 = $6.8m
Pros:
NO Impact on individual Cryptoequity (coin) price = $0.10 / SWARM
NO Impact on individual Market Cap = $10M
Highest possible future coin price increases potential raise in future crowdfunding rounds
Highest possible coin price in secondary market
Cons:
Perception of ‘reversal’ to initial Swarm plans / proposal leads to reduced confidence in integrity
SWARMCORP PREFERED/RECOMMENDED OPTION
In the interest of transparency and to avoid accusation of bias in description it is fair to disclose that our preferred option is HOLD.
We choose ‘HOLD’ on the basis that this provides only upsides to future Cryptoequity value, along with a maintained highest possible Market Capitalisation and current Coin value.
A higher Market Cap, provides greater confidence in the viability of the project, along with higher general media interest in the project. All factors combine to suggest to us this is the best option for both current backer cryptoequity liquidity on secondary markets, along with higher potential upside in future rounds.
It is our hope that this explanation of our preferred option may also go some way to offset any implication of impropriety by the founder team. Ultimately this decision is in your hands and we hope that you will exercise your option to VOTE.
HOW TO VOTE
To vote “ISSUE” to this proposal send your SWARMVOTETWO to this address:
199SUqeqz4afTe2sE1ALLHgyxH8FuvMBmJ
To vote “BURN” to this proposal send your SWARMVOTETWO to this address:
1GWjirRVvbazHDyh5wcyoGyswNEr5hrNbw
To vote “HOLD” to this proposal send your SWARMVOTETWO to this address:
14b8L2LZbFD89EFt8crcBQWiyKBP8g8xWj
SCHEDULE & KEY DATES
YOUR COINS MUST BE RECEIVED BY THE VOTING ADDRESS BY MIDNIGHT AUGUST 31st (PST).
On SEPTEMBER 1st we will act according to the VOTE options, Live voting progress will be available at any time at the TOP of this BLOG.
WARNING: BITCOIN REQUIRED TO VOTE
As this voting process is recorded on the blockchain, there is a requirement for you to submit a small ‘miner fee’ along with your vote. This miner fee must be paid in bitcoin and is currently approximately 0.0001 BTC (approximately $0.06 USD)
To learn more about Swarm, please visit the Swarm website www.swarmcorp.com
To discuss this VOTE please visit the Swarm forum swarmcorp.lefora.com
From the outset, Swarm promised Real Crowdfunding™, this means not just donating to a project, and not just pre-ordering a product, or even buying merchandise. Real Crowdfunding promises to engage you in the projects you back, as never before.
Blockchain 2.0 technology has enabled Swarm to operate in a transparent and incorruptible fashion, and we promised to enable our backers to contribute to every significant aspect of our operation.
Nearly two weeks ago, we communicated the conclusion of our Phase I crowdfunding round. Thanks to all of you, we raised in excess of $1m USD to help build out the complete feature set of this revolutionary crowdfunding platform.
ABOUT SWARM CRYPTOEQUITY™
Your contribution and participation in our project is represented by SWARM Cryptoequity. It is fundamental to our platform that you think of a Swarm ‘coin’ as not a traditional token of currency. Whilst a SWARM Cryptoequity does not represent a shareholding or security, it is in essence something more akin to a share in an evolving collaborative project.
Our description of Cryptoequity when interviewed is precisely this; Cryptoequity is to traditional equity what Cryptocurrency is to traditional currency.
Where Cryptoequity represents a quantum change over traditional equity is in TRUST.
The ‘rules’ by which Cryptoequity behaves (attributes) are contracted on the Blockchain.
You may view the attributes of the SWARM or SWARMPRE Cryptoequities on Blockscan
SWARMPRE:
LOCKED = FALSE
24M (Total issued to date)
SWARM:
LOCKED = TRUE
100M (Total issued to date)
For the purpose of this post, we’ll save some of the other features and attributes of Cryptoequity, however what is particularly relevant is the concept of LOCKING and total issue.
Had you purchased during the Swarm crowdsale, you may note that we issued in return, the Cryptoequity SWARMPRE. This coin is not LOCKED. This means, that we (the issuer) may at any time increase the number of coins in circulation. This issue of SWARMPRE enabled us to operate in a more flexible manner, with regard to the distribution of SWARM cryptoequity at the conclusion of our crowdfunding campaign.
It was always our intention at the conclusion of our crowdfunding to FULLY distribute the SWARM Cryptoequity. So, ultimately had we eventually sold only 50mm SWARMPRE, then we would have distributed 100mm SWARM as dividends to SWARMPRE holders, meaning ultimately the resultant SWARM:SWARMPRE holdings would be at a 2:1 ratio.
During our crowdfunding campaign it was repeatedly communicated to our team that backers would prefer us to use funds raised to return to our Swarm bat-cave and focus on further developing the platform.
In response to our backers’ suggestions, we issued the worlds first Cryptoequity powered vote.
ABOUT SWARM CRYPTOVOTE
An important aspect of the Swarm platform which differentiates us from first generation crowdfunding concepts is that we believe the continued participation of backers is a desirable outcome for all parties. Our platform aims to deliver an innovative set of tools to shift the capabilities of startup enterprise to extend participation in corporate governance to their backers.
A core aspect of our governance toolset is the Cryptovote, which leverages the transparency of the Blockchain to enhance trust between backers and new projects. We use this tool to govern Swarm.
ABOUT SWARMVOTEONE
SWARMVOTEONE enabled our early backers to decide on whether or not Swarm should continue to focus on its own fundraising or to focus on product development.
The conclusion was clear with nearly 4:1 in favour of us ceasing our fundraising activities (YES: 1416553 | NO: 374368 )
As promised to participants in SWARMVOTEONE we acted on the vote, and ceased fundraising activities on July 20th having sold approx. 10mm SWARMPRE.
This vote also provided for a further coin-powered fundraising at later stage when our platform is more fully developed.
We believe the net result of the vote was the best course of action for both coin holders, and success of the project as a whole, however it has fundamentally changed the path of Swarm, and consequently some of the plans made with regard to distribution of the SWARM cryptoequity have been impacted.
Again our community has been vocal in its’ opinions and it has lead us to the purpose of this post and associated VOTE.
ABOUT SWARMVOTETWO
Backers in a project where the cryptoequity is LOCKED, can participate with confidence, that their ‘slice of the pie’ that is represented by their cryptoequity can NEVER be inequitably diluted.
It is impossible for us (or anyone else) to ever issue more of a LOCKED Cryptoequity. This ability to limit and lock Cryptoequity issue is a fundamental aspect of the value and utility of our invention.
The SWARM Cryptoequity is LOCKED, and a total of 100 million SWARM coins have been created.
As of today, Swarm has NOT ‘completed’ its fundraising activities, however there are many who feel it is time for us to dispense with the (unlocked) SWARMPRE asset, and distribute the (locked) SWARM cryptoequity.
It is not our intention as a business to burden you with every decision, but it is clear that many of our backers (understandably) have a strong opinion as to the correct way for us to dispense the SWARM assets.
It is the explicit intention of this post to make it possible for you to fully understand the options available to Swarm with regard to the distribution of our Cryptoequity, and for you to voice your preferred approach.
infograph-vote2
You will be issued (today – August 1st) with a Cryptovote token SWARMVOTETWO. You will find this in the same counterwallet http://www.counterwallet.co which contains your current SWARMPRE cryptoequity. These Cryptovote tokens are issued 1:1, and so you should find you have the same number of votes as you have equities.
To vote, simply ‘SEND’ the SWARMVOTETWO tokens to your preferred action. Note, it is POSSIBLE for you to ‘split’ your voting to your desired outcomes.
For example: Lets say you have 10 cryptovotes, and there are 3 possible outcomes (A,B,C) to choose from:
You may, send ALL 10 VOTES to option A
You may also send 6 votes to option A and 4 votes to option C.
Whatever your preferred options, we highly recommend that you send ALL of your VOTE coins. VOTE coins which are not sent to the associated wallet by conclusion of the voting period will be considered to have abstained.
Success in this vote for Swarm, is not determined by the outcome, but by participation. We aim to achieve in excess of 50% participation.
THE SWARM CROWDSALE RESULTS:
A total of 24m SWARMPRE coins were created to support the Swarm Phase I crowdsale.
By July 20, a total of 9,592,995.78253 SWARMPRE were sold.
The BTC valuation of sold SWARMPRE at July 20 was $1.1m USD
Presently, Swarm holds a total balance of 14,407,004.21747 (unsold) SWARMPRE
EXPLANATION OF SWARM CURRENT MARKET CAP
For the sake of illustration, let’s round off the above numbers to 10m sold and 14m unsold and $1m USD raised.
In short the Market Capitalization of a company is calculated by multiplying a company’s shares outstanding by the current market price of one share.
The investment community uses this figure to determine a company’s size, as opposed to sales or total asset figures.
Source: http://www.investopedia.com/terms/m/marketcapitalization.asp
As such, at the intended 1:1 exchange of SWARMPRE to SWARM, market capitalisation can easily be calculated as:
$1m / 10m SWARM cryptoequity = $0.10 per SWARM (Market price of one share)
$0.10 * 100m shares outstanding = $10m USD Market Cap.
As outstanding stock is bought and sold in public markets, capitalization could be used as a proxy for the public opinion of a company’s net worth.
As backers of the Swarm, it is important for you to understand the PROS and CONS of the three options. It is highly likely that the value of your Swarm Cryptoequity will be affected both individually (per coin) and in total based upon the decision taken.
It is also important to understand, that we have designed all three options to provide identical impact on Swarm founder Cryptoequity holidings to that of backers.
OPTIONS AVAILABLE FOR ‘UNSOLD’ PHASE I CRYPTOEQUITY
ISSUE
Distribute 24m SWARM to SWARMPRE holders proportionately (2.4:1)
(first) BURN holdings of SWARMPRE in the vend account
Phase II raise potential:
68m * $0.04 = $2.72m
Pros:
Meets some backers’ understanding of the SWARM initial plan
Backer ‘feel good factor’ – higher number of coins in wallet
Cons:
Significant negative impact on individual Cryptoequity (coin) price
New Price = Old Price * 0.4 = approx $0.04 / SWARM --> so what? there will be more coins
Corresponding significant negative impact on Market Cap
Market Cap = Market Cap * 0.4 = $4m USD --> BLATANT LIE, market cap will stay the same
Negative impact on future crowdfunding rounds through reduced coin value --> more BS
Negative impact on coin price in secondary market --> so what? there will be more coins
BURN
Distribute 24m SWARM 1:1 with SWARMPRE
(then) BURN holdings in the ‘vend’ account.
Pros:
Closest way to simulate Swarm initial plan given change to crowdfunding rounds agreed in SWARMVOTEONE whilst still distributing SWARM Cryptoequity
Phase II raise potential:
68m * $0.084 = $5.712m
Cons:
Negative impact on individual Cryptoequity (coin) price
New Price = Old Price * 0.84 = approx $0.084 / SWARM
Corresponding significant negative impact on Market Cap
Market Cap = Market Cap * 0.84 = $8.4m USD
Negative impact on future crowdfunding rounds through reduced coin value
Negative impact on coin price in secondary market
HOLD
Distribute 10m SWARM 1:1 with SWARMPRE
(first) BURN holdings of SWARMPRE in the vend account
Phase II raise potential:
68m * $0.084 = $6.8m
Pros:
NO Impact on individual Cryptoequity (coin) price = $0.10 / SWARM
NO Impact on individual Market Cap = $10M
Highest possible future coin price increases potential raise in future crowdfunding rounds
Highest possible coin price in secondary market
Cons:
Perception of ‘reversal’ to initial Swarm plans / proposal leads to reduced confidence in integrity
SWARMCORP PREFERED/RECOMMENDED OPTION
In the interest of transparency and to avoid accusation of bias in description it is fair to disclose that our preferred option is HOLD.
We choose ‘HOLD’ on the basis that this provides only upsides to future Cryptoequity value, along with a maintained highest possible Market Capitalisation and current Coin value.
A higher Market Cap, provides greater confidence in the viability of the project, along with higher general media interest in the project. All factors combine to suggest to us this is the best option for both current backer cryptoequity liquidity on secondary markets, along with higher potential upside in future rounds.
It is our hope that this explanation of our preferred option may also go some way to offset any implication of impropriety by the founder team. Ultimately this decision is in your hands and we hope that you will exercise your option to VOTE.
HOW TO VOTE
To vote “ISSUE” to this proposal send your SWARMVOTETWO to this address:
199SUqeqz4afTe2sE1ALLHgyxH8FuvMBmJ
To vote “BURN” to this proposal send your SWARMVOTETWO to this address:
1GWjirRVvbazHDyh5wcyoGyswNEr5hrNbw
To vote “HOLD” to this proposal send your SWARMVOTETWO to this address:
14b8L2LZbFD89EFt8crcBQWiyKBP8g8xWj
SCHEDULE & KEY DATES
YOUR COINS MUST BE RECEIVED BY THE VOTING ADDRESS BY MIDNIGHT AUGUST 31st (PST).
On SEPTEMBER 1st we will act according to the VOTE options, Live voting progress will be available at any time at the TOP of this BLOG.
WARNING: BITCOIN REQUIRED TO VOTE
As this voting process is recorded on the blockchain, there is a requirement for you to submit a small ‘miner fee’ along with your vote. This miner fee must be paid in bitcoin and is currently approximately 0.0001 BTC (approximately $0.06 USD)
To learn more about Swarm, please visit the Swarm website www.swarmcorp.com
To discuss this VOTE please visit the Swarm forum swarmcorp.lefora.com
They are trying to convince people to vote HOLD (leaving the backers with a much smaller slice of the pie) by presenting false premises (see my bolded comments above)
It is also unclear (they haven't answered that question yet) if the people at Swarm are also taking part in this vote.
