The MoonLite proposal envisages, in its initial stages, the setting up of a fully-rigged crypto-mining farm in Iceland which exploits the country’s geothermal-sourced electricity that, aside from being ecologically friendly, is also incredibly cheap by international standards.
Electricity is, of course, the biggest outgoing for any crypto-mining operation, usually representing around 90% of its costs.
Whilst a classic business model approach could apply here, what gives this project a twist is how its blockchain-based, tokenised model conceives of a permanent, twice-yearly buy-back token burn program that will progressively remove tokens from its initial 100 million circulation.
Added to this, the team will be seeking to redistribute profits towards an internally-managed crypto fund whose profits in turn will help to drive the buy-back program.
Putting forward a straight-forward proposal, the South African team behind MoonLite are looking to implement a crypto-mining operation for the Bitcoin, Dash, Bitcoin Cash and Litecoin cryptocurrencies. The project team are not discounting the possibility of expanding this list at a future date, particularly to other Bitcoin-derived currencies.
One gauges a very strong emphasis on transparency within the white-paper’s contents. Firstly, the team have partnered with an independent auditor to track and report on the project’s progress, particularly with respect to how it is performing against its own milestones (see ‘Road Map’ section).
Secondly, the management of profits generated by the operation will be decided by regular vote from token holders – specifically in relation to the distribution of profits between maintenance costs and contributions to the project’s crypto investment fund.
Lastly, the team are applying a 180 days vesting period for its own token allocation, adding another layer of trust to the project.
Well written, clearly presented and logically structured, the white-paper consolidates our more general impression that we have here a team that is focused on due diligence and transparency whilst bringing investment-grade professionalism into the mix.
Initially conceived in 2017, the project’s next major milestone – at the time of writing – is the release of an independent audit, performed by smart-dec, that has been commissioned to assess the smart contracts that will drive the token sale.
Once the smart contracts are approved, the team will then proceed to an initial pre-sale that will take place over February 2018, with the full sale beginning immediately after. The full sale begins at 00:00 hours on 01 March 2018, ending on March 15.
Construction on the data centre is expected to be completed by early August.
In keeping with the team’s emphasis on project transparency, an independent audit has also been commissioned to report on the general progress in relation to, amongst other things, each of the milestones laid out in the white-paper road map.
The team also anticipates a token listing on several exchanges within two weeks of the sale close.
Project leads are listed on the website, each providing a LinkedIn profile at the very least, some also providing personal Facebook and Twitter accounts. ICOExaminer has been able to reach out to several board members to verify the identities provided.
Amongst the advisors on the team, we have Simon Cocking who is also listed as an advisor on several other, concurrent token sales, including those of ClearPoll, Experty and Elpsis.
Cocking is also the senior editor of Irish Tech News and his name appears to find itself regularly associated with both promising and successful ICOs. Cocking should also bring a valuable network of contacts to the project that will help bring its message to a wider audience.
The project’s internal tokenomics are governed by its token buy-back program, likely the most fascinating aspect for readers of the white-paper.
The first token buy-back program will begin six months after completion of the full sale and only initial contributors will be invited to participate. Subsequent buy-backs will then proceed at regular six month intervals thereafter, six weeks after each half-yearly financial audit.
For the buy-back program itself, just over 1/3 of all net profits (35%) will be allocated to the re-purchase of tokens being sold on the open market. Where things get interesting is that these buy-backs will take the form of buy-orders placed on the exchanges at a price that sits above the current market average. Excerpt from the white-paper:
In other words, 35% of the operations profits will be conceptually distributed between each token currently circulating on the open market to determine a ‘mark-up’ figure. This mark-up figure is added to the current market price of the token to determine the value of the buy-orders placed by MoonLite on the exchanges.
Repurchased tokens will then be burned – i.e. removed from circulation permanently – thus reducing supply. The mechanics of the token buy-back are designed to result in a perpetual reduction mechanism of token circulation.
Whilst token buy-backs financed by operational profits are a regular feature of token issues, a buy-back program driven by a repurchase price which is itself determined by the operation’s profit margins is something entirely new to us here at ICOExaminer and will, at the very least, make for interesting observation on the overall price dynamics of the token.
No marketing leads appear on the project team list. Having consulted with MoonLite directly on the subject, ICOExaminer are informed that this aspect of the project is outsourced and includes the following elements:
- Two full-time social networking marketers
- Full budget for paid advertisements across each of the major social networks: Facebook, Twitter, Instagram, Telegram, LinkedIn and Bitcoin Talk
- Media campaign to cover a number of major publications inc. Huffington Post, CNBC and Bloomberg
The inclusion of Simon Cocking on the advisory board, as noted above, will likely also bring a major boon to the campaign’s efforts.
The proposition has several elements which make it stand out from the crowd. Firstly, we have here a team that is keen to make the project transparent at every turn through the use of independent auditors and contributor-driven votes to determine future allocations of resources.
This is allied to the fact that we have a team that is putting aside a modest reserve for itself (aggregate reserve of 10% for the team, developers and other project contributors) which itself will be vested for 180 days in the post-sale phase. This would tend to indicate a team that holds a high degree of confidence in its ability to execute.
Secondly, the token buy-back program will likely result in a decrease in supply over time. If this turns out not to be case, this will likely be because token holders will prefer to hold on to what they perceive to be a valuable token. Future buy-back rounds will likely be compounded by future data centre constructions if the first data centre proves to be a successful venture.
Lastly, the cryptocurrency fund which is allied to the allocation of profits – net of the buy-back program – offers the potential for its own healthy contribution for diversifying both the project’s risk and profitability.
The pre-sale stage is divided into two stages:
– Phase 1 pre-sale – ends 31 jan (100-300% bonus)
– Phase 2 pre-sale – starts 1 feb to 28 feb (50% bonus guaranteed)
The 50% bonus of the Phase 2 pre-sale will be extended into the first twelve hours of the main sale. Interested parties can also participate with standard debit/credit card payments. Full sale details are provided at sale.moonlite.io
Ratings Score Methodology: a weighted average across three scores: Concept (10% weight), Blockchain Fit (30% weight), Execution (60% weight).
Disclaimer: Please note that all ICO reviews on ICOExaminer are non-technical assessments, in some instances are sponsored, and are very often sentiment-based and should not - under any circumstances - be construed as professional investment advice.