U Network Blockchain Protocol’s UUU Coin ICO Runs out of Tokens After $8 Million Airdrop
Tokens Get Finished In An $8 Million ICO
Earlier this month, developers of a blockchain publication procedure known as U Network suddenly declared that its reserve of UUU virtual assets had been depleted. As a result, the company was planning to purchase particular of the tokens it has previously sold out to initial investors. This will be carried out via airdrops in the early part of next year.
At the beginning of the venture, the U network had set aside a ten billion UUU lid on the supply of its token. This is worth about $16 million. The firm also set aside 40% of the entire amount of tokens meant for the formation group as well as for impending developments.
As a result of the growing number of tactical partners, as well as the kind of interest the token has elicited, the calls requesting for the UUU tokens has surpassed the present selected assets. One of the challenges that the firm is facing is leaving their bionetwork tokens intact. The company is wondering how it will pursue the new prospects to develop the U Network bionetwork.
The company has designed the ICO as well as airdrops in a number of projects across the system. This is with respect to the number of tokens which have been minted, disseminated, and preserved by a particular firm or non-profit. In as much as a number of projects may not restrain the amount of virtual assets that can be produced inside their blockchain bionetwork, others such as the U Network have chosen to put a limit on the entire number of tokens supplied.
The Ten Billion Limit
Regarding the U Network, the 10 billion limit was executed due to the project which was content-centered, whose objective is assist virtual content platforms to align themselves with the benefits of their consumers in a better way. The U Network seeks to offer adequate inducements to members of the community.
The present predicament facing the U Network is an outlier in the crypto sphere. Other innovative technologies which have executed the hard caps on their ICOs and airdrops may in the near future get themselves in comparable situations even as they commence establishing their bionetworks.
Additionally, the situation faced by the U Network may compel comparable projects to provoke an even tougher question: what do you do when your startup runs out of its own tokens.
Approaches To The Challenge
Inducements are particularly vital blockchain networks, and by this time, there seems to be no conventional approach through which projects can regulate the number of tokens to be issued and kept. This is the observation of Joshua Gans, a university lecturer of strategic management at the University of Toronto, who asserts that there is no metric.
In case a firm wishes to utilize tokens for inducements, the quantity of the inducement depends on the value of the token. This may not be easy to envisage at the commencement of project. Gans further confirms that launching the number of tokens projects should retain is likewise unmethodical.
Catherine Tucker, a management professor at the MIT says that projects are faced with a number of challenges in the crypto industry which is extremely examined. In most cases, these projects are devoid of methodologies meant to determine token supplies and holdings. Additionally, founders of such projects should also contemplate the sensitivity of their engagements.
Catherine further asserts that the case of U Network is an illustration of the huge-trade-offs that founders are faced with. In case they hold more than enough tokens in their reserves, they face the accusation of being termed as greedy. On the other hand, if they give away more than are sufficient, they lose a crucial lever which they require to incentivize investors to use in their platform in the future.
Resolving a scarcity of tokens is arguably a risky task. Solutions like snowballing the token supply of the network is likely to have an impact on the price of the token. This is likely not to go down well with investors, thus risking their trust in the project.
In this regard, the U Network intends to overhaul its network by carrying out a token ‘buy back’. This practically means that it will buy back 1,000 ETH worth of UUU from the present holders over the sequence of numerous phases.