Tokenomics and Funding
The foundation of bitcash's ecosystem rests on a straightforward yet potent tokenomics framework, utilizing a utility token operating on a mint-and-burn model. This model is designed to ensure that the circulation of tokens dynamically reflects the platform's growth and contributions from its community.
Mint-and-Burn Mechanism
Tokens within the bitcash ecosystem are issued to both open-source contributors and investors based on the current market valuations, introducing a dilutive effect with each new issuance. However, the essence of our model is to ensure that contributions and investments significantly enhance the organization's value, surpassing any potential dilution. Revenue for the platform is generated as users purchase utility tokens for accessing various services, creating a cash flow that is then strategically used to buy back tokens from circulation. This process inherently reduces token supply, creating an anti-dilutive effect that, in turn, appreciates the utility token's value.
Conceptual Parallels with Shareholder Models
Bitcash's tokenomics conceptually mirrors the traditional shareholder model, where shares are issued to founders and contributors continuously. Like retained earnings used for share buybacks in a corporate setting, our burn-and-mint approach reflects a similar strategy but within the blockchain domain, offering a modern take on rewarding contributions and ensuring value accrual back to the platform and its stakeholders.
Equity Distribution and Token Valuation
Our approach to equity distribution is straightforward yet profoundly effective, grounding in the principle that equity—or in our case, tokens—should be allocated based on the value of past contributions, whether they be cash, work, or ideas. This method allows for ongoing token distribution reflective of an individual's contribution percentage to the total, adjusting for token valuation changes over time.
For Bitcash, all contributions are valued at cost, disregarding the timing of these contributions to maintain fairness and simplicity during our pre-product market fit phase. Unlike traditional startups, we eschew future work projections, vesting schedules, or cliffs from our model, focusing instead on rewarding past contributions directly and continuously.
Encouraging Adoption Among Launchpad Startups
We advocate for all startups within bitLauncher to adopt this equitable tokenomics model, promoting a transparent and fair ecosystem for AI innovation. We also advocate for smaller seed & pre-seed raises and only further fundraising after startups achieve certain milestones in user traction or cash flow.
Our own fundraising journey on the launchpad underscores our commitment to these principles, aiming to raise a $350k seed through a public token sale that also prioritizes equal participation opportunities between retail, angels and VCs. (Note: Due to regulatory pressures, US investors or those from US-sanctioned countries will be excluded)
Use of Proceeds
The funds raised will predominantly support development and marketing endeavors necessary for the continuous improvement of our launchpad, wallet, and DAO tooling. Additionally, we aim to initiate the development of the non-profit, no-premine L1 Antelope chain by Q3, marking a significant milestone in our roadmap towards creating a more open, equitable, and innovation-driven future.
This section not only underlines the sophisticated yet accessible tokenomics underpinning the bitcash ecosystem but also outlines our strategic vision for funding, growth, and the sustainable development of AI applications using crypto infrastructure.
