Introducing Dark Matter
What you get with Dark Matter (XDM) is an asset with a limited, shrinking supply that has practical utility. The more people use XDM, the faster the supply shrinks. It’s a utility token. And it's a store of value. Say hello to the first token on the ION blockchain.
What’s the supply?
There will be 71,000 XDM tokens to start. Every time someone moves XDM on the blockchain, a little bit of XDM gets burned as a transaction fee.
What’s Dark Matter’s utility?
Anyone who wants to create a new token on the ION blockchain must spend some XDM to create the token. Gaming is the primary use for tokens, but not the only one. When game developers tokenize in-game assets, gamers can actually own and even trade them on ionomy Exchange.
How will XDM be distributed?
Half the Dark Matter supply will be distributed via Initial Exchange Offering (IEO), conducted by ionomy using the ION-XDM market. The remainder will be distributed via airdrops and promotions (stay tuned for details).
How much does XDM cost?
The market will decide. Price Discovery starts Monday, May 20th.
How does Price Discovery work?
On Monday, May 20th, a new market will be displayed on the ionomy Exchange featuring the ION/XDM trading pair. Platform users place bids. These bids are non-binding until execution. No trades will be executed for the first week until the Golden Hour — and in that final hour, the top orders for the first round may execute at any time during that sixty minute period.
What happens in the Golden Hour?
The golden hour is the 60 minute period during which active orders on the books may be executed. Auction participants will not know exactly when orders will fill, but they will know the starting time of the Golden Hour window. Throughout the bidding process, orders can be added or cancelled at any time until executed. Within that 60 minute window, users accept that any orders placed may be filled. The purpose is to ensure that the final bids realistically reflect how much participants are willing to pay.
The Golden Hour will occur in the following window:
Saturday, May 25, 2019, 10am-11am Central Time (Saturday, May 25, 2019, 17:00-18:00 UTC)
The average selling price of the First Round becomes the basis for all subsequent rounds. The bidding for the next round starts at a 10% premium, and each successive round rises by another 10%. That means that the first round participants are competing to get the best XDM price available during the entire sale event.
There will be about one day between the completion of Round #1 and the start Round #2. The issuer will place a series of limit sell orders, reflecting the amount of XDM for each scheduled round and the fixed prices for Rounds 2-6.
Round 2 starts:
Sunday, May 26, 2019, 10am Central Time (Sunday, May 26, 2019, 17:00 UTC)
Initial Exchange Offering Structure and Rules
Here's the basic elements:
- 5 Rounds
- First Round achieves Price Discovery.
- Bidding in subsequent rounds starts at increasing premiums over average executed order price in First Round.
- Earliest and best offers win the bid.
- Minimum order: 1 ION
- Maximum order: 25,000 ION
- Maximum number of orders: No Limit
- Orders must be placed in whole numbers of ION
|Round #||% for sale||#XDM for sale||multiplier|
How this works (a hypothetical example)
To demonstrate how this would work in practice, consider the following example.
Sample Order Book, Round #1 (Golden Hour snapshot)
|Bid/Ask||Price (ION)||Amount (XDM)|
Based on the above, assume that, once we reach the Golden Hour of Round 1, the issuer will place a market sell order for 7100 XDM (the amount allocated to Round 1).
- The top bid of 100 ION/XDM would be filled, and that bidder would get 1 XDM.
- The next set of bids at 10 ION/XDM would be completely filled.
- The next set of bidders would get 3499 XDM filled at 9 ION/XDM. The earliest bidders at this rate would have their orders filled first. The later orders would not execute.
Under these conditions, the average price for the first discovery round would be 9.38 ION/XDM and the starting price for Round 2 would be 10% more: 10 ION/XDM.
After about 24 hours, Round #2 would start with a series of limit sell orders hypothetically shown here at 10, 11, 12, and 13 ION/XDM. Remember, no order could be below 10 (110% of price established in Round 1):
Sample Order Book, Rounds #2-5
|Bid/Ask||Price (ION)||Amount (XDM)|
As soon as participants buy enough orders at 10 ION/XDM to reach the round’s limit (for Rounds 2-5), then the next round is automatically available for purchase.
Can buyers from Round 1 sell their XDM in subsequent rounds?
No. XDM will not be distributed to buyers until after the Initial Exchange Offering is complete which should be completed in approximately three weeks.
What happens to unsold tokens?
If any tokens remain unsold 21 days after the start of Round #2, all unsold tokens will be withdrawn from the market and burned (provably and permanently destroyed on the blockchain).
Where can I learn more about Dark Matter (XDM)?
Learn more at darkmatter.info.
NO INVESTMENT ADVICE
This foregoing content is for informational purposes only, and you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained herein constitutes a solicitation, recommendation, endorsement, or offer by the authors or any third party to buy or sell XDM or other cryptocurrency in any jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
This foregoing is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing herein constitutes professional and/or financial advice, nor does any information herein constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. The authors are not a fiduciary by virtue of any person’s use of or access to this content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content herein before making any decisions based on such information, and you agree not to hold Deflation Labs, ionomy Limited, or any of their affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make with regard to XDM and/or this document.
There are risks associated with investing in cryptocurrency and such investments involve risk of loss. Loss of principal is possible. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods. A cryptocurrency’s past market performance is not a guarantee or predictor of future market performance.