Blockstack, a firm that’s working on offering a decentralized, tokenized computing network (to facilitate decentralized applications) has applied with the SEC to provide a $50 million token sale later this year. If approved, the company would be the first in the blockchain industry to use the SEC’s Regulation A+ framework.
They are among the first to seek SEC approval before doing anything, although we heard earlier this week about a small private airline that received a tacit “go-ahead” from the SEC with severe limitations.
Blockstack has chosen to go an alternative route, in which they’ll be able to offer full-blown security tokens to investors. According to a press release we’ve received, Blockstack has already been used to create over 80 applications.
Y Combinator and Naval Ravikant, among others, have already privately invested $50 million in the company. Blockstack itself provides the backbone of a decentralized development environment. Some of the dApps already launched on the platform include Graphite and Block Vault, an alternative to Google Docs and a team-based alternative to LastPass, respectively.
According to the SEC filling, Blockstack will be offering 40 million of the tokens for $0.30 each. Forty million tokens from the token generation event will be reserved for developers creating quality applications on the platform. Erstwhile, 215 million tokens will be sold for just $0.12 each.
Called the Stacks Token, one of the investors will be buying up 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.”
Upon approval, the offering will be conducted for 28 days via stackstoken.com. Blockstack says it will cost them around $1.8 million to conduct the offering. A total of 255 million tokens will be created, and demand for them will be pursuant to their usage on the Blockstack platform. The minimum purchase is $100. US dollars, bitcoins, and ether are accepted intended to be accepted payment methods.
Ethereum dApps, in general, have seen low usage compared to other platforms, but this could change when scaling solutions make the network much faster and cheaper to use.