The insurance sector has become quite cost inefficient in the recent past. Large portions of the premiums paid are spent on other things except playing for claims that suffer loss. In most cases, insurers will spend a huge part of the income on things such as office buildings, a huge labor force, legacy IT systems, and many layers of management.
The Sagittae Solution
Sagittae has created a new model for the risk protection sector that is powered by blockchain. This decentralized alternative to the normal insurance will eliminate the need for expensive structures in the insurance sector that lead to inefficiency.
How Sagittae Blockchain Peer To Peer Financial Protection Works
This new model will eliminate the existing insurance value chain and come up with a new system for sharing risk. In this system, groups will be able to organize their financial protection via a peer-to-peer contract to be used for risk sharing. The project will utilize the Ethereum blockchain and the smart contract to go back to the basics. Insurance is supposed to be a mutual agreement between peer to cover the losses of each other. New technology will make it possible to reinstate these mutual fund structures on a global scale.
The Sagittae platform allows and helps groups to join or create peer-to-peer contracts for the sharing of risk. These schemes for risk protection will only govern the relationships of the participants. They will let members fund their capital needs, and work based on fair terms and conditions based on the input of participants.
The Sagittae STAE Token
All transactions on this platform will utilize the STAE token. This will ensure global access to all the risk protection schemes. Since crypto is quite volatile, the developers have come up with the Mutual Custodian Fund. This fund will hold major fiat currency reserves. The reserves will be used to guarantee the STE tokens, which can be exchanged for fiat at a fixed rate. These tokens are thus different from the existing crypto coins since real assets back them.
Sagittae STAE Token ICO Details
The team considers the ICO to be a valuable alternative type of funding to the usual financial system. However, they do not like the model of most ICOs. That is why they are using this ICO to demonstrate how ICOs can be done.
The main issue they have with most ICOs is that they raise millions in just one event. Meanwhile, the projects have hardly gotten off the ground. Besides that, huge amounts of coins are allocated to the advisors and founders. This leads to a major dilution of the token value for the other participants in the public sale. Besides that, raising all funds upfront eliminated incentives to develop the project. That is why this project will raise funds in three rounds.
ICO Round 1
- Tokens issued: 1,000,000
- Token price: 1.40 USD
- Start: May 16, 2018
- End: June 16, 2018
ICO Round 2
- Tokens issued: 5,000,000
- Token price: 1.56 USD
- Start: February 2019
- End: December 2019
ICO Round 3
- Tokens issued: 15,000,000
- Token price: N/A
- Start: N/A
- Total token supply: 40,000,000 STAE
- Soft Cap: 700,000 USD
- Hard Cap: 1,200,000 USD