Blockchain Startup CasperLabs Teams With BitMax To Conduct First Exchange Validator OfferingMarch 27, 2020
Blockchain protocol research and development company CasperLabs is partnering with Singapore-basede digital asset trading platform BitMax to conduct its private validator token sale in the form of an Exchange Validator Offering (EVO).
CasperLabs has developed a blockchain platform purpose-built to scale sustainable opportunities for everyone, including developers, entrepreneurs, and consumers. Unlike other solutions and platforms, CasperLabs is designed to scale without sacrificing speed, cost, usability, decentralization or security. The platform is using CBC Casper, a Correct by Construction, Proof of Stake consensus protocol that uses bonds and slashing (penalties) to secure the network.
Launched in 2018, BitMax offers a broad range of financial products and services for both retail and institutional clients, with robust product design ranging from innovative volatility products to margin trading and other investment solutions.
CasperLabs, together with BitMax.io, is taking a novel approach to challenge the status quo of staking power consolidation by conducting an EVO. BitMax will provide technology and execution support while CasperLabs will be the legal issuer allowing BitMax users to sign a non-transferable Validator Future Token Agreement (VFTA) to purchase CLX tokens, the native cryptographic token of the CasperLabs blockchain. The collaboration between the the two companies will provide hundreds of thousands of small token purchasers with fair access to the project’s EVO at the earliest possible opportunity and the most favorable token prices. All EVO participants will be part of the founding stake on the Genesis Block of the CasperLabs network and an integral part of the network launch and initial security.
“$3MM worth of CLX tokens will be available for sale in the EVO which will be divided into three rounds, with bonus tokens available in the first and second rounds,” CasperLabs said. “Registration to participate in the CasperLabs EVO is currently live on BitMax.io with an open funding period from March 23 to April 6. The price at which EVO participants can purchase CLX tokens is $0.01. This represents a significant discount to the price at which CLX tokens will be distributed via an eventual public sale, where tokens will be auctioned at a minimum bid price of $0.02 per CLX.”
Per the official announcement, three types of token rewards will be associated with the EVO – (1) early participation rewards, (2) staking rewards, and (3) transaction fee rewards.
“All three types of Validator Token Rewards will be paid out at the end of an era into a separate rewards wallet address that needs to be provided prior to Genesis. Rewards are tied to the finalization of proposed blocks according to two different (“short-run” and “long-run”) criteria and overall liveness conditions on the platform,” CasperLabs said.
To date, CasperLabs has made no token offerings and all funding has been conducted via a standard Series A equity financing. According to the company, the decision not to conduct a token sale was based on ensuring open access to the underlying system.
“Since first introduced, Proof-of-Stake (“PoS”) blockchain networks have historically seen staking dominated by institutions and large token holders (“Whales”),” CasperLabs said. “Whales are often early stage investors of a given PoS project with large allocations of tokens vested at mainnet launch. Such concentration of staking power and “Monopolization of Consensus” is troubling because it consolidates control of the blockchain network to a small handful of validators. This can harm the project in various ways, including concentration of voting power, single points of failure for malicious network attacks, and network instability. This runs counter to the proposed aspirations of many PoS to be truly permissionless, decentralized, and secure.”
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