Inventory financing of hundreds of millions of Boca is how step-by-step to access today?

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Boca (Polkadot), a significant competition of ethernet Square, a closely watched community chain project, is approximately to get started on the third round of financing at 11:00 Beijing time on July 24. Boca has completed two rounds of financing since its launch, selling a total of 5.5 million DOT. The third round of financing will provide 300000 DOT quotas. Among them, the unit price in the first 72 hours is $120, and then the unit price is $145. The DOT purchased by the public offering needs to be locked up for 5 months, but it can be used for pledge and voting during the lock-up period.

Blockemist collates the key process and development progress of Boca.

Inventory financing of hundreds of millions of Boca is how step by step to get to today? A list of Boca’s history and development progress, drawing: Blockemist.

How is this expensive project realized?– an inventory of the financing history of Boca.
In 2016, Gavin Solid wood, co-founder of Etay Fong and founder of the Web3 Foundation, launched the Boca project with the goal of moving towards a decentralized Internet, or Web 3.0.

The first round of crowdfunding sold 5 million DOT, but 63% of the ETH assets raised were frozen.
In October 2017, the year after the launch of the project, the Web 3 Foundation, the manager of the Boca project, conducted a crowdfunding (the first token pre-sale) through a Dutch auction, raising more than 48,000 Ethernet Square (about $144 million at the time) and sold 5 million Boca original tokens DOT (an average of about $29 per DOT). Crowdfunding investors include well-known venture capital firms such as Bosst VC, Polychain Capital and Pantera Capital.

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Regrettably, in November 2017, there was a serious security breach in Parity multi-signature wallets, resulting in the freezing of more than 510000 Ethernet and other token property in Parity multi-signature wallets deployed after July 20, 2017. Of these, more than 300000 Ethernet workshops belonging to the Web3 Foundation (accounting for 63 per cent of Boca’s first token pre-sale) are also frozen and have so far been unable to raise them.

However, the Web3 Basis team said at the time that the damaged multi-signature pocket didn’t contain all Web3 Foundation’s money, had no effect on the introduction of Boca, and wouldn’t normally affect programs for another funding for the Boca project.

The next round of private placement sold 500000 DOT.
In June 2019, Boca completed a fresh circular of financing by offering token DOT. The Web3 Base had previously verified to Lianwen a total of 5 % of DOT tokens have been sold to institutional traders in the around, valuing Boca at about $1.2 billion in today’s circular. Which means that the common price of every DOT in this circular of funding is approximately $120. Within this circular of funding, the original price of DOT tokens runs from $70 to $100. by enough time the funding is sketching to an in depth, the price tag on each DOT has already reached $140. However, the building blocks didn’t disclose the total amount extracted from the sale. It isn’t clear if the focus on of $60 million in sales has been fulfilled.

Inventory financing of vast sums of Boca is how step-by-step to access today? Three founders of Boca (): Robert Habermeier, Gavin Hardwood, Peter Czaban from remaining).

At that time, blockchain investment agency IOSG Ventures and investment account Fundamental Labs announced that they had jointly participated in Boca’s round of financing. The chain learned that in addition to IOSG and Fundamental Labs, there was another investment organization in the investment group that spoke on the health of anonymity. Three organizations spent more than 10 million US dollars in Boca IOSG Ventures led the investment group.

What’s the DOT distribution setting and token financial model?
Next, let’s check out DOT’s token allocation and financial model.

Relating to Boca’s original plan, the full total preliminary circulation of DOT was 10 million. After 5 million tokens are released in the first around of funding, 3 million of the rest of the 5 million will be remaining to the net 3 Basis (maintained or distributed at its singular discretion), and the rest of the 2 million DAT prior to Genesis will be sold or elsewhere distributed.

Which means that as well as the 800000 DOT that is or will be assigned to investors in the second and third rounds of financing, there is still 1.2 million DOT left unallocated.

In addition, when Boca launched the test network Kusama last year, it said that 1% of the DOT tokens of Boca’s main network in the creation period would be retained as the ultimate incentive for Boca test network Kusama stakeholders and contribution communities. However, the specific incentive mechanism has not yet been determined.

However, according to the Hash CIB report compiled by Block Rhythm in May, the number of global sales directly through Boca will fall to 3 to 1 1 per cent because of market sentiment, according to the Web 3 Foundation, while another 2 per cent of private offering rounds will be sold exclusively to US investors through third parties at an unknown time. According to the Web 3 foundation, 3 per cent of DOT will be sold at the same price as the latest round of private placement (the third round). The specific distribution is as follows:

Inventory financing of hundreds of millions of Boca is how step by step to get to today?

However, the total supply of DOT is not fixed, and there is no upper limit. The utmost blood flow of DOT tokens is “10 million preliminary issuance + inflation”.

Relating to Boca Wiki, DOT uses an inflation model to prize verifiers and nominees with new tokens. The model assumes that the way to obtain DOT will steadily increase each year, to be able to fairly guide the amount of token pledge and achieve consensus security and token liquidity.

Specifically, DOT’s nomination rights prove that (NPoS) consensus algorithm is a consensus algorithm created by Boca predicated on PoS algorithm. The verifier operates the node to take part in the creation and verification of blocks, and the nominee can pledge tokens to get the nomination right, and nominate his respected verifier to obtain an incentive. Area of the prize comes from the excess issuance of DOT tokens, which is the primary way to obtain inflation for DOT. The inflation rate in the first season was 10%. The inflation rate of the verifier node token era is related to the pledge rate, and the others will go directly to the Ministry of Financing (Treasury). The original goal of the net 3 Basis was to pledge about 50 % of the DOT tokens to the NPoS consensus system for the nomination certificate appealing.

“So, if I get hit by a bus, it would be clear that the project would go on”

Based on the latest version of Boca, the utilization of Treasury money is in the end managed by DOT holders through a referendum. The Treasury elevated money by moving some verifier rewards (from inflationary issuance), a small portion of transaction costs and slash penalties (fines paid by malicious or incompetent verifiers). These funds are being used for the smooth operation of the system and the broader ecosystem (marketing, community activities and collaboration).

As shown in the following figure, the issuance rate to the verifier node and the issuance rate to the Ministry of Finance will change according to the pledge participation.

Inventory financing of hundreds of millions of Boca is how step by step to get to today? The Abscissa is the pledge rate, the Y axis represents the annualized inflation rate (10% in the first year), the blue line indicates the inflation rate generated by the verifier node token, and the green line represents the verifier node annualized rate of return. Source: Web 3 Foundation.

When the overall inflation rate in the first year is 10%, when the pledge rate is exactly 50%, all new issues will flow to the verifier node, where the annualized rate of return of the verifier node is 20%.
When the pledge rate is less than 50%, the issuance to the verifier node will increase with the increase of the pledge rate, while the issuance to the Ministry of Finance will gradually decrease until the pledge rate approaches 50%.
When the pledge rate is greater than 50%, the issuance to the verifier node will gradually decrease with the increase of the pledge rate, and other newly issued DOT will flow to the Ministry of Finance.
Theoretically, if the pledge rate is near to 0, the circulation to the verifier node will approach 0, however, not 0. Because even if the nominee gets nothing at all, ensure that at least the verifier’s working costs are paid.