Lisk ICO Terms

Below you can find the final terms for the Lisk ICO. Please note that with this blog post the old ones (Part I, II & III) will become void. The terms explained in this blog posts are the only valid ones.

By Lisk

21 Feb 2016


When does the ICO take place?

The ICO takes place on the 22nd of February and will end on the 21st March.

Which crypto-currencies can be exchanged?

In our ICO we accept Bitcoin (BTC) and any other altcoin supported by ShapeShift, e.g. Ether, Monero, Nxt, Dash or Litecoin. These crypto-currencies are eligible for all bonuses and rewards.

Additionally, we accept Crypti (XCR) for a fixed conversion rate of 0,00001300 BTC per XCR. Crypti is not eligible for any bonus or reward, and will always be accepted at the given conversion rate during the ICO.

Our Lisk community member MalReynolds2 also released great charts in which you can see how much Lisk you get for every Bitcoin exchanged, and how much Lisk you get for every Crypti exchanged.

How is the distribution?

Lisk will launch with a total of 100,000,000 LISK and allocate them according to the following distribution.

  • 1,000,000 LISK for early supporters.

Early supporters who participate in our bounty campaign will receive a total of 1,000,000 LISK. All participants get on a list and will receive the LISK once the mainnet is launched. We will contact every supporter individually on their social network profiles.

  • 2,000,000 LISK for advisors, partners and 3rd parties.

Over the course of the next few months, Lisk will bring onboard advisors, collaborators, partners and other 3rd parties. These may involve lawyers, mentors and companies. Therefore, 2,000,000 LISK will be reserved for these people.

  • 4,000,000 LISK for campaigns and bounties (after ICO).

Once the ICO is over we will host several campaigns in which JavaScript developers and users can earn LISK. Our faucet will also be paid by this fund.

  • 8,000,000 LISK for the Lisk core team.

The Lisk core team will receive 8,000,000 LISK.

  • 85,000,000 LISK for ICO participants.

All ICO participants together will receive 85,000,000 LISK in exchange for their BTC, XCR, and other altcoins.

All Money is held in Escrow

Everyone who wants to participate in the ICO, should be able to do so with a confidence in our ability to manage the funds. One huge factor in this ability is obviously trust. In order to resolve this issue effectively, we thought very hard on how to maximise the trust you have in us as a team, and have come up with what we feel is a secure solution.

All BTC will directly go into a 2-of-3 multi-signature Coinbase vault. That means the money can only be withdrawn if two of the three signees agree.

Therefore we have partnered up with two trusted and reputable individuals who will get one key to the multi-signature vault each.

We feel both parties complement each other very well. By having two prominent members with strong judicial, and crypto-currency backgrounds, the multi-signature escrow should provide a solid foundation of trust.

Please be aware that both are independent escrow partners, Coinimal as a company is not involved in this partnership.

Additionally, all XCR will go directly to the Crypti account of Axel Hellinger.

UPDATE: After we have collected over 25M XCR already, we took the safe route and Axel Hellinger created a second Crypti account to which the exchanged XCR will go from now on (27th February, 2016, 12:30AM GMT+1). Axel Hellinger, our escrow partner, is still the only one with access to that account and will keep the passphrase secure until the launch of Lisk.

All collected funds (BTC and XCR) will be paid out, once the Lisk network has forged its first blocks successfully. Both escrow partners have agreed to this condition.

On our website you will be able to get an overview of how much BTC and XCR has been exchanged.

Where can I participate?

Upon launching the ICO, we will announce the activation of a custom-built website, on which you will be able to participate in the ICO. We have worked extremely hard to make the whole process as simple and user friendly as possible.

On the website, you will need to register an account with your email address. After you have signed in, you will have access to the control panel where you can initiate the exchange of various crypto-currencies like Bitcoin, Ether, Crypti, Dash, Nxt, and many more.

Once an exchange process is initiated, the website will give you a unique deposit address that you will need to send your chosen crypto-currency to.

In the case of Crypti, you will be able to send the coins directly from the website by signing transactions locally in the browser, so your passphrase will not be broadcast over the network. For any other crypto-currencies, you will need to send the funds from the relevant coin’s wallet.

Attention! You should only send one deposit to each address! If you want to exchange more, or different coins later on, you will be able to initiate another exchange process very easily. For every new exchange, the system will create an additional Lisk account that is assigned to the individual exchange.

After the coins are confirmed on the respective network, you will then be able to download your unique address and key pair, that will include your Lisk passphrase. The Lisk passphrase will grant you access to your LISK once the ICO is over.

Attention! We do not save the generated Lisk passphrases anywhere, therefore, before you click on the “Acknowledge Keys” button, it’s extremely important that you save it somewhere secure! Otherwise you won’t be able to access your Lisk account after the ICO is over.

If you have lost any of your passphrases before the Lisk network is launched, please contact us immediately! We will then reset the affected exchange on a case by case basis. However, you will have to send us a small amount from the same crypto-currency account you used in the exchange process (or digitally sign a message if possible).

Today, before the ICO starts we will post another blog post which explains the whole exchange process in greater detail with images. Tomorrow we will also release a video which explains the whole process.

What bonuses can I receive?

There will be 4 stages in which people can earn different bonuses for their exchanged BTC and ShapeShift accepted altcoins. (Not valid for exchanged XCR!)

First week: 15% bonus

Second week: 10% bonus

Third week: 5% bonus

Fourth week: 0% bonus

Example scenario:

  • 10 BTC were exchanged by 3 persons at a time (total 30 BTC)
  • 0 ETH and 0 XCR were exchanged
  • Person A exchanged in the first week
  • Person B exchanged in the third week
  • Person C exchanged in the fourth week

Thanks to the bonus the total amount of exchanged BTC is counted as 32 BTC (10*1,15+10*1,05+10*1).

  • Person A receives (10*1,15)/32 = 0,359375 = 35,9375% of the LISK
  • Person B receives (10*1,05)/32 = 0,328125 = 32,8125% of the LISK
  • Person C receives (10*1)/32 = 0,3125 = 31,25% of the LISK

Special reward for day 1 participants

In order to provide a higher incentive to participate in the ICO from day one, we will be taking 200,000 LISK out of our own funds, and distributing them to all day one ICO participants according to their exchanged amounts. The extra reward will be given to users who donate BTC or an altcoin accepted by ShapeShift within the first day of the ICO launch.

For example:

At day 1 if we collect 100 BTC from 3 users (A/B/C):

  • If User A sends 20 BTC, he will receive 40,000 LISK from the day 1 reward.
  • If User B sends 30 BTC, he will receive 60,000 LISK from the day 1 reward.
  • If User C sends 50 BTC, he will receive 100,000 LISK from the day 1 reward.

The reward will not be visible in the genesis block, as we will distribute the 200,000 LISK manually out of our own accounts after the launch.

Please be aware that XCR participants are not eligible for this reward.

Will there be a refund?

You will be able to refund your XCR for one month after the ICO ends. That means until the 18th April 2016. In this case you need to send the Lisk team the exact amount of LISK back you received after the ICO (-0.1 LISK for the transaction fee).

Soon after the 18th April the Lisk team will equally distribute all returned LISK to all LISK ICO participants on the network (without the exchanges). That means to receive this optional bonus you need to withdraw your LISK from the exchanges at this time.

Exchanged BTC and any other altcoin will not be eligible for any refund.

For what cause is the money?

The money will be used for the Lisk ecosystem over the next years. We will use it to pay all kinds of arising expenses.

E.g. promotions, advertisements, salaries, travel costs, conference visits, sponsoring, Dapp fundings, development, designs, contractors, infrastructure, necessary devices, meetings, hostel/hotel costs and more.

We will manage the funds with high diligence.

  • Every date and time specification is in the UTC timezone.
  • Every date includes the first and last day. That means for example in the first ICO week the 22nd and 28th are valid days as well!