The crypto industry has become known for it’s quick boom and bust cycles, and multimillion dollar fundraising rounds raise by companies that have created nothing more than a nice looking website and complex white paper.
Yet it appears that not all ICO projects are after a quick cash grab. Last week it was announced that the founders of Nebulas would be restructuring their token liquidation agreement, opting to wait 10 years before they can sell their tokens and cash out of the project.
Nebulas is a next generation public blockchain that successfully raised $60 Million and is in the top 100 list of coins by market cap. The team had initially planned to allocate 20% of the NAS token supply over a period of 3 years. For the founders, that timeline has now been extended by another 7 years in an effort to showcase to investors their long-term commitment to the project.
Asked why the decision was made, Hitters Xu, the founder Nebulas stated that:
“We are conscious that the construction and development of Nebulas still have a long way to go. We need to focus on Nebulas developing, including technology and ecosystem,”
The teams marketing director, Becky Lu, echoed the same sentiment:
“We just want our team to focus on our technical vision. It’s not an easy decision for everyone because the blockchain industry is a very innovative industry and still has a lot of risk. I think that shows our determination.”
Additionally, the team has decided to publish the smart contract addresses holding their NAS tokens and will work with a third-party auditor to verify their finances.
In an industry where trust is hard to come by, Nebulas seems to be setting a great example for future ICO projects to follow. Many public companies listed on the NASDAQ stock exchange already follow similar practices, yet in the wild west of crypto, such openness and commitment is a rarity.
Whether or not decade long token liquidation timelines will become a new standard amongst ICOs remains to be seen. However, from the perspective of the average investor, there’s no doubt that the move would make a promising blockchain project even more attractive.
Originally published at cryptopotato.com on August 14, 2018.