Bprotocol, a Swiss startup nonprofit foundation with offices in Tel Aviv, Israel, whose core objective is the establishment of the Bancor protocol as a global standard for intrinsically tradeable crypto-currencies, said it raised over $153 million in less than three hours, through a crowdfunding sale held on June 12.
In what became a record-breaking Token Generation Event (TGE), 10,885 participants contributed 396,720 ETH, or Ether, the network’s single reserve.
The Bprotocol Foundation, registered in Zug, Switzerland, was founded in 2017 with the goal of promoting the development and adoption of the Bancor protocol, a standard for the creation of intrinsically tradable tokens. These smart tokens benefit from network effect and algorithmic pricing, enabling the long tail of user-generated tokens to emerge and democratizing value creation.
Billionaire venture capitalist and long-time bitcoin aficionado Tim Draper, has taken his second major step into the new world of digital currency startups, by contributing to the Bancor Network Token launch. He also joined the Bancor Advisory Board alongside monetary and open-source technology visionaries, including Bernard Lietaer, John Clippinger, and other experts in diverse fields and supporters of the foundation’s mission.
Draper, who has been outspoken about the challenges of liquidity in traditional venture capital, is said to have become intrigued about the potential of the Bancor protocol, due to its presumed ability to democratize and bring continuous liquidity to a new generation of user-generated tokens emerging in the blockchain ecosystem.
The Bancor protocol enables built-in price discovery and a liquidity mechanism for tokens on smart contract blockchains. These “smart tokens” hold one or more other tokens in reserve, and enable any party to instantly purchase or liquidate the smart token in exchange for one of its reserve tokens, directly through the smart token’s contract, at a continuously calculated price, according to a formula which balances buy and sell volumes.
“We are beginning to explore the possibility of issuing a VC Token for our diverse network of investors, entrepreneurs, local and global businesses,” said Draper, Founding Partner of Draper Associates and DFJ. “We’d like for this to be a Smart Token, so it can benefit from continuous liquidity from day 1. We look forward to a long collaboration with the Bancor team on this project, and are excited for what BNT has in store.”
“It is a dream come true for me to work with long-time Silicon Valley pioneer Tim Draper,” said Bancor Co-Founder Galia Benartzi.” Growing up in Palo Alto, the Draper family name has been synonymous with both the roots of venture capital in the Bay Area, and also the fruits of innovation. Tim, his family and firm, continuously forge bravely ahead, which is what we are doing at Bancor. We are humbled by this partnership to bring liquidity to all.”
By contributing to the Bprotocol Foundation, users generated BNT, the first smart token to be deployed using the Bancor protocol, establishing the BNT network.
The BNT network will include user-generated smart tokens, token changers forming a global decentralized, highly liquid exchange, decentralized token baskets as well as subnetworks. By using BNT as one of their reserves, other smart tokens can connect to the BNT network.
According to Bancor, its network provides certain dynamics where increased demand for any of the network’s smart tokens increases demand for the common BNT, benefiting all other smart tokens holding it in reserve. Naturally, it is also susceptible to decreased demand.
The foundation said it will collaborate with different contractors to achieve its goals, as well as governments, businesses, academia and NGOs committed to realizing collaboration potential in communities around the world.
The Bancor protocol is named in honor of the Keynesian proposal to introduce a supranational reserve currency called Bancor to systematize international currency conversion after WWII.
50/20/20/10 Token Distribution
According to Bancor, 50% of BNT will be issued to the contributors in the fundraiser, 20% allocated to partnerships, community grants and public bounties, 20% to the Foundation’s long-term operating budget, 10% to founders, team members, advisors and early contributors. Founders and team contributors will be subject to a three year vesting schedule.