Dear Communities,
First of all, we wish to thank you for all the feedback we have received over the past week regarding both companies coming together.
There were a lot of mixed reactions to our proposals. This process has also led to an erosion of trust between two good communities and the team. This is the last thing we want, and that is why we have spent a lot of time, internally and externally, to come up with this conclusion.
You have made your point. Two major feedback on the merger and swap:
1. Little or no dilution — both COSS as well as LALA / ARAX holders
2. Favorable Swap Ratio — especially when it comes to CFT vs LALA
There was a whole host of other feedback on other aspects of our business. We have taken them fully into consideration. We have also worked on multiple iterations alongside our financial and legal advisors.
We have decided not to hold a vote.
While we have tried our very best to be as democratic as possible in this process, we realized that it is impossible to please everyone. As democratic as that process may be, as business owners, we owe it to you, to make good/tough decisions, and do what is best for everyone, as best as we see fit and move forward.
We will have ONE token (ARX) across the entire ecosystem, BUT we will NOT increase the supply above the already existing 200M COSS tokens.
How can this be achieved: We will use the founders and team’s existing and future funding pool to keep an equilibrium. The total supply will not get diluted. This means the majority of the new ARX will be in the circulating supply, from day one.
Other changes to be noted:
- Fee Split Allocation (FSA) of 50% for everyone- The new ARX token will still have the FSA you know and love
- Trading Fee Discount for everyone- We are incorporating CFT’s token use case into the new ARX token
- The Time Deposit (TD) feature will be removed
- A percentage of our profits will still be used to buy back tokens in the open market. The use case for these tokens shall be evaluated at a later stage by the company
With these changes, we project a higher revenue, which will allow us to rebuild our company war chest over time. For now, we have enough finances to cover our development and team expenses.
The plan is to look into various other planned features and implement them if/when we feel the time is right. We are here for the long run, and we are building for the future.
These are our final numbers:
The new MAXIMUM supply will be 200M ARX
*The company has been collecting CFT for the last few months as a part of its fees
**The company founders and team were unlocked after 12 months
Rationale:
These ratios are calculated based on 2 major considerations:
1. Beyond looking at factors such as market cap, price, volume, ICO price, etc, we considered non-tangible factors such as what the LALA team would bring to the table: their technical expertise, resources, marketing, experience, etc. With this merger, we are in a much better position than before to deliver a product that you expect of us. At the same time, COSS adds immense value to the ARAX and its utility.
2. The realization that we might never be able to come up with a swap ratio that is satisfactory for everyone, which is why we took the hard choice of making an executive decision, take the best choice possible for all stakeholders, and move forward.
These are hard choices. Our actions will speak louder than words, to earn back the trust and support you have given us.
This decision will allow us to focus on delivering on our promises to you: A good exchange with great features combined with a state-of-the-art .
A more detailed feature list and product roadmap will be released next month. However, for the next three months, our focus is very clear:
COSS Exchange
- Liquidity and Market Making
- Negative makers fee
- Withdrawal and deposit through APIs
- New listings and nodes
- Exchange performance and scalability
ARAX Wallet
- Improved UI/UX performance and integration with COSS
- New tokens and blockchains in sync with COSS
- New crypto product partnerships like lending via third-party providers
- Transactional discount on every product using ARX token and more use cases for ARX token
- Referral, rewards and loyalty program synced on both platforms
Next steps:
The swap process shall be done in two steps:
Step 1: Conversion of CFT into COSS will happen on Wednesday, 15th of May, 2019 starting 2 PM, SG time.
- Swap Ratio: 1 CFT to 0.5 COSS
- CFT’s 25% discount use case will be stopped effective immediately
- CFT’s token use case will be transferred to COSS token
- CFT trading and withdrawals will be stopped and disabled
- We will swap all CFT into COSS, including those in your FSA
- CFT will be de-listed and all CFT trading pairs will be removed
- All subsequent deposits of CFT token into the exchange after Wednesday will be swapped into COSS token on a weekly basis
- Deposits and swaps will be open until 1 week before step 2
- We will also temporarily disable our referral program until further notice to re-evaluate our referral mechanics
Step 2: Conversion of COSS and LALA into ARX (Conversion process to start in June. Conversion details to be announced later in May 2019)
Swap Ratio of ARX to COSS: 1 to 1
Swap Ratio of ARX to LALA: 1 to 10
Both swaps, Step 1 & Step 2 will take place ONLY on COSS.IO. The Company reserves the right to change the swap process. The swap will be open for an extended period of time to ensure nobody misses out.
The new ARX smart contract will contain all the planned features such as FSA, airdrop function, etc. and fee discount will obviously be one of the other use-cases.
We sincerely hope that the entire community will stand behind us in this decision and allow us time to focus and deliver on our promises.
Best regards,
Sankalp & Rune
Disclaimer: This announcement is not meant to be taken as investment, accounting, tax or legal advice or a recommendation to buy, or sell any security, digital asset or other investment, management product or service or pursue any investment strategy, but rather as a rough template to show the process behind how both companies as described above intend to come together, both at level as well as company level. Given this field is relatively new, best practices on what to do and what not to do are still being defined. If you have suggestions or contributions, please share them with teams in a direct message. The Companies reserve the right to change the process or any part thereof this announcement. This announcement is for reference only. It will not help you to “lambo” or “moon” or any other euphemism for unhinged speculation. It should help you to supplement your own analysis of the project’s commercial viability. The Companies are in constant discussion with their legal and financial advisors and reserve the right to change the process or terms till final are swapped.
Published at Mon, 13 May 2019 09:38:13 +0000
