Blockstack, a firm that’s working on offering an ecosystem that gives users control over their fundamental digital rights: Identity, data-ownership, privacy, and security, has recently applied with the SEC to provide a $50 million token sale later this year.
A first for companies who week SEC’s approval before conducting a token sale, if approved, Blockstack will be the fisrt such company in the blockchain industry to use the SEC’s Regulation A+ framework. The filing states that Blockstack will be offering 40 million of the tokens for $0.30 each. Other than that, 215 million tokens will be sold for just $0.12 each.
From the token generation event, forty million tokens will be reserved for developers who are building quality applications on the decentralized platform. They are adopting an approach which will allow them to offer full-blown security tokens to investors.
The firm is gaining steam with its popularity on the rise. Allegedly, it has already been used to create more than 80 quality applications. The company has already received private investments from Y Combinator and Naval Ravikant, among others.
Blockstack provides impeccable support to building a decentralized environment. Some of the dApps like Graphite and Block Vault which have been developed on the platform, have already received recognition. The former is an alternative to Google Docs and the latter is a team-based alternative to LastPass.
The tokens are being hailed as Stacks Token, and one of the investors will be purchasing around 2% of the tokens after its issuance, as the document says:
“Union Square Ventures, a beneficial owner of approximately 15% of our capital stock, over 5% of the outstanding Stacks Tokens and an affiliate of a member of our board of directors, has indicated an intent to purchase up to approximately $1 million in Stacks Tokens in the general offering through one or more affiliates. All such tokens will be purchased at the general offering price and on the same terms as the other purchasers in the general offering. However, because there is no binding agreement obligating Union Square Ventures or its affiliates to purchase these tokens, it may determine to purchase fewer tokens than it has indicated an intent to purchase or not to purchase any tokens in this offering.”
If approved, the token sale will be go on for 28 days via stackstoken.com. The cost of conducting this sale is around $1.8 million. The total number of tokens being created for the sale is roughly 255 million. The minimum purchase is $100.