We are delighted to propose a mechanism which we feel will benefit our shareholders, community and maidsafecoin holders. As we all know the company now has funds for the next year or so (crypto price-dependent), however it would benefit greatly from an investment perspective to remove any financial constraints to maintaining the very best team we can afford. MaidSafe as a business also wish to remove the burden of continually seeking investment via VCs and grants, which detracts from focus on launch. Ideally, we would like to be able to fund the company, potentially at no cost to anyone, and reward those who help us out. I believe we can achieve this in a simple and effective way.
There have been many offers of donations to MaidSafe and it was thought that although this was admirable and humbling that we could do better. The approach here allows people to aid the project but potentially receive a return for doing so. This is a mechanism we believe is fair, and rewards participants. In fact, this scheme may allow many more people to participate in the SAFE Network community as coins are more widely distributed.
The MaidSafeCoin Loan Scheme
The proposal is that all of those who would wish to loan some of their maidsafecoins to MaidSafe will, subject to launch of safecoin, receive a 50% bonus of additional safecoin. This will suit those who are holding until launch and those who just wish to help out, rather than donations, we prefer to reward supporters and this does just that. The scheme is simple and works like this:
- People apply via email at (Offer is oversubscribed and cannot take any new applications at this stage) to lend an amount of maidsafecoins.
- We will ask for another medium to contact them on and send a receiving address specific to that person, along with a signed contract from us.
- Receipt of the maidsafecoins concludes the loan bargain.
This scheme will close when there are 10,000,000 maidsafecoins on loan to MaidSafe. Please note, due to admin costs we will limit this offer to loans of over 100,000 coins only.
How will this be paid back by MaidSafe?
Conditional on successful launch, 5% of all safecoins will be minted and available to shareholders - repayment will happen at that stage. Contributors will be contacted via the medium(s) in 2. above to provide us with a “SAFE Network” wallet address and we will transfer the coins to them, keeping a receipt as proof of payment. This will all be handled by MaidSafe who will make sure all loans are repaid on time.
Where can MaidSafe obtain these safecoins on launch?
As founder, I hold a substantial number of shares in MaidSafe. Subject to launch and receipt of safecoin for shares I have undertaken to lend up to 15,000,000 safecoins to MaidSafe to allow it to make the payments due to participants. Contracts have been entered into to allow this to happen. The company will then have up to 5 years to repay its loan to me from future earnings.
Does this have any other benefits?
This scheme will release back into the markets static coins that are not trading. This is likely to aid price and also introduce more people to the project.
What are the main risks to participants?
The main risks to participants are:
- that maidsafecoins lent to the company cannot be returned, so these loans are fixed until launch and cannot be undone. This means any person who has loaned their coins will not be able to recover them under any circumstances after they have been sold by MaidSafe,
- that the company fails to successfully launch within the time available to it - in such circumstances the loans are unlikely to be repaid, and
- that the safecoin price is lower than the current maidsafecoin price and they don’t recover the current value of their maidsafecoins.
What is the risk of not doing this?
The risk is the collapse of the project and coin price should we fail to launch with our current crypto asset reserves.
Will it work?
I personally have just under 1 million coins (930305) and I will put in 100% of my coins as I believe this is what people should expect of the founder, complete commitment. That will mean we are already 10% of the way there. Only time will tell if we get 100% of the way.
Ok what do I do now?
To start the process send an email to (Offer is oversubscribed and cannot take any new applications at this stage) stating:
- Amount of maidsafecoins you wish to loan
- Another medium for contact (for security, please make sure these mediums are secured) such as a forum name, Twitter handle, etc.
We will respond within 7 days with a signed legally binding agreement and a receiving address. When you send the agreed number of coins to that address, the agreement is live.
– David Irvine (@dirvine)
I just hope the company prefers first to take money from people with smaller sums (but over 100k) and not choose 1-2 whales …
So you are right!