What is pCST?
The Liquidity Bootstrap event is a fantastic place to start, but it’s not scalable enough to produce working capital for the project on a large scale. Building a stable ecology and protocol is difficult and time-consuming, and it necessitates a large amount of operational capital.
Auditing, development, legal, marketing… all of these things cost money, and this budget is separate from the protocol’s treasury to ensure transparency. It also necessitates alignment so that contributors are personally motivated to offer their all (like us).
To develop bootstrap, we organized a private round with some hedge funds and some individual investors. Our primary goal in this round is to raise funds and recruit individuals who we believe will be critical to the protocol’s success.
How it works?
The private sale is not for CST. Pre-mined and sold CST tokens are not possible. If we had done so, it would have cost us an additional $1 every CST sold, in addition to the real profit, to ensure that the tokens were funded. This would be highly wasteful and costly. So, how did we go about conducting the private sale?
pCST is a CST conversion substance that allows the holder to mint CST by burning pCST and receiving the CST’s intrinsic value. An investor, for example, will give 1 DAI and 1 pCST to mint 1 CST.
pCST is only vested if there is a supply. There will be more pCST available in exchange as the quantity of CST grows. As a result, we don’t get a refund or a specific date when the tokens are issued. We also require materials in order to grow.
This, we believe, generates the most optimal incentive alignment possible. Tokens are limited in number and can only be redeemed when trading with positive outliers. We, the team, investors, and advisers, want to boost supply and prices, not just one or the other. You, as well.
The supply-based token vesting mechanism, unlike other forms of time-based vesting, ensures transparency and long-term commitment of the project’s Team and Investors. We hope that the Crypstarter community will be able to follow and build their wealth in a sustainable and long-term manner, and that this sustainable development will benefit us as well.
pCST Allocation
The Allocation is as follow:
- Team: 310m pCST and 8% supply
- Investors: 70m pCST and 3% supply
- Advisors: 70m pCST and 2% supply
- Public Sale (Member Special Offering): 30m pCST and no supply cap
- DAO: 520m pCST and no supply cap (community can decide that!)
The pCST of the team, investor, and adviser vests as a total of 13% of CST Supply. This indicates that a maximum of 130k pCST can be redeemed from a 1M CST supply. It’s 1.3M pCST with a 10M CST supply. This is a long-term bet because pCST holders finish vesting anywhere from 2B to 5B supply. There is a lot more room for holders, but it is dependent on the protocol’s actual growth.
Hubert -
Founder & CEO
Let’s connect!
Crypstarter Network: https://crypstarter.network
Crypstarter Finance: https://crypstarter.finance
Twitter: https://twitter.com/cst_blockchain
Medium: https://crypstarter.medium.com/
Reddit: https://reddit.com/user/crypstarternetwork
Github: https://github.com/Crypstarter
Discord: https://discord.gg/KWPPTvzeuw
Telegram Global: https://t.me/crypstarter
