In this post, we examine various token distribution models, roughly in chronological order. We then try to abstract the properties of an optimal token sale mechanism.

Part I. A Brief History of the Future

In what follows, we give a brief history of token distribution models, largely intended for non-crypto native readers.

In Part II, we ask ourselves the question what properties a token sale mechanism would have if designed by God.

The original: Bitcoin

Token distribution models have gone through a number of metamorphoses since the “fair” Bitcoin mining in 2009.

In 2009, Bitcoin’s inventor(s) engineered a mining system that distributes new token supply in the form of bitcoins to those who participated in supporting its network’s consensus.

Although its Proof of Work resulted in a hardware arms race, the goal was to bring as many…


Venture Capital is as much part of tradfin as banks and other centralized finance. In this post, we’re proposing a new model that preserves the best of VC with decentralized venture building.

Scott Kupor’s “Secrets of Sand Hill Road” can be read both as an ode and an epitaph to Venture Capital.

On the one hand, it is an ode to the “wealth engine” built by VC and its central role in funneling funding to private companies.

In this light, it is genuinely an excellent book. …


In this more technical post, we share how we designed our smart contract that automates the bookbuilding process of our token pre-sale.

The launchpool idea

In our February , we talked about “launchpools” and their potential to turn capital formation on its head by letting the community stake in a refundable pool which turns into committed capital at the end of a pre-sale period.

We have now turned this idea into a smart contract which, in its first deployment, will be used to build a book of prospective token buyers for our own OtoCo token pre-sale starting 24 June.

We designed it such that, in a next release, it can be used by OtoCo users and other issuers who want to automate their token pre-sale…


This month is all about us. With OtoCo nearing its first anniversary, we use our May newsletter to post on where we plan to take the project from here (Part I), why a token for OtoCo (Part II), how we plan to issue our token (Part III) and how we propose to govern the project (Part IV). We conclude with a musing on venture building as a multiplayer onchain game. Thanks to all who walk with us on the Road to OtoCo.

- Han

PART I

Our Vision for OtoCo: From Product to Platform

OtoCo is almost a year old. We’ve learned a lot from our users and…


Unlike Swiss Rail, this month’s Swiss Special of The Otonomist arrives with a slight delay, largely because we’ve had splendid weather in April and have been mostly outdoors… We hopefully made it up with two in-depth pieces on Swiss entities, and an update on new OtoCo features released today. We end with a Swiss quiz.

- Han, Founder & CEO, Otonomos

PRODUCT UPDATE

NEW! You Can Now Pay for OtoCo Services in Both Crypto and Fiat


Welcome to the March Wyoming Special of The Otonomist. Best known for its national parks, crypto cognoscenti also know Wyoming for its frontier blockchain laws and emerging digital asset infrastructure. In this issue, we talk about why a trust in Wyoming works particularly well if you’re based outside the U.S., and invite you to join a running thread on its new “DAO Bill”.

Have a good rodeo!

- Han, Founder & CEO, Otonomos

PRODUCT UPDATE

Incorporate Faster Than Your Shadow: Use Your Ethereum Wallet to Spin Up an Instant Wyoming LLC on OtoCo.io


In this February Otonomist, we unveil the idea of launch pools as a new way to raise funds from the community. For our paying users, we prepared a manual on how to convert a US LLC into a private crypto investment fund. We also scheduled a first webinar on how to arbitrage jurisdictions which is FREE to join.

Fair winds and following seas!

- Han, Founder & CEO, Otonomos

PRODUCT UPDATE

Towards Crypto Banking: Using a Multi-Signature Wallet To Manage Your Company’s Digital Assets


Last week, Otomomos filed its Form D so we can use the SEC accredited investor safe harbor to offer our security token to pre-existing contacts. In what follows, we share our experience, which we found a bit annoying but not in the least intimidating.

Fundraising can be fun if you enlist tech and use the right tools.

As practitioners keep reminding us, there are two broad types of digital assets: Unregulated crypto, and securities.

One of our advisors, Andy Singleton, puts it thus:

To qualify as unregulated crypto, you will need a token that is created and earned by a community, and not by an issuer. True open source community crypto is a small and fascinating use case. Bitcoin is the perfect case. It was never sold by an issuer. Every bitcoin was earned through mining.

For almost anything else, you will need securities. [W]hen those issuers ask for investments, they are creating securities.

Many of our…


Lots of clients automatically think offshore when looking to operate in freedom and optimize for tax. However, the UK, Canada and US all have entities that are cheap to form, easy to run and have no tax on foreign income. We took a closer look.

Strong contender: Think of B.C. when you need an LLP.

Offshore stigma

Operating from offshore is in many ways stigmatized, not only in the popular press but also by many service providers who will deplatform your business if it is not set up in one of the main, often English-speaking countries.

This ranges from crypto exchanges to payment providers to banks.

For digital businesses, these service providers are a lifeline but most, including crypto facilitators such as Wyre and crypto-friendly banks such as Mercury, limit their services to entities based in the UK, Canada and the US.

Legit Hack

Luckily there’s a legit hack which will let your digital business process payments tax free…

OTONOMOS.COM

Otonomos helps doers and investors in the crypto and blockchain community around the world form, fund and govern their legal entities, both offchain and onchain

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