What is pVSQ?
The paradox of DeFi is we all want great projects that make us money, but no one wants to pay for them. Fair launch is great in spirit, but it’s not feasible in practice.
Nothing comes for free
Building a solid protocol is hard work, and it requires capital. Audits, development, legal, all of these things need some amount of money to get done. Beyond that, it requires alignment so that contributors feel personally incentivized to give it their all (as we do).
So, we are going to hold a private funding round with the community and a few individual investors to bootstrap development. Our goal in the round is to primarily to bring on funds and individuals we believe can be pivotal to the success of the protocol.
How it works
The private sale is not for VSQ. We cannot pre-mine and sell the actual VSQ token. If we did, we would need to take $1 per VSQ sold in addition to the actual raise to make sure the tokens are backed. This would be really inefficient and capital intensive.
So, how do we do it?
Through a sale of pVSQ. pVSQ is a precursor derivative of VSQ; it gives the holder the option to mint VSQ by burning pVSQ and providing the intrinsic value of VSQ. For example, an investor would provide 1 DAI and 1 pVSQ to mint 1 VSQ.
This makes it similar to an option. pVSQ is worth the price of VSQ minus intrinsic value, and it only makes sense to redeem it when VSQ is above intrinsic value. This ensures that our incentives are aligned to keep the premium alive.
But it doesn’t stop there. pVSQ is also vested based on supply. As VSQ supply grows, more pVSQ become available to redeem. So we don’t get an upfront payoff or an arbitrary date at which tokens have vested. We need supply to grow too.
We believe this creates the most optimal incentive alignment you could ask for. Tokens vest along with supply, and are only redeemed when we trade with a positive extrinsic value. We the team, investors and advisors, don’t only want supply to increase, or price to go up, we want both. And so do you.
The Specifics
Team, investor, and advisor pVSQ cumulatively vest as 20% of VSQ supply. This means that at 100k VSQ supply, a maximum of 20k pVSQ can be redeemed. At 1m VSQ supply, it’s 200k pVSQ. pVSQ holders finish vesting anywhere from 1m to 2m supply, so this is a long term bet.
There’s a lot of upside for holders, but it is dependent on actual growth of the protocol.
The breakdown is as follows:
- Team: 80k pVSQ and 8% supply
- Investors: 70k pVSQ and 7% supply
- Advisors: 50k pVSQ and 5% supply
- DAO: 800k pVSQ and no supply cap (community owned) and 80% supply
- Total: 1m pVSQ
The Plan
These funds will be used to support the project for as long as possible so we can allow the DAO to stockpile funds and start off with a strong footing. But we still dislike that not everyone got the opportunity and will plan accordingly for the future.
If you find this disagreeable or you feel like you’ve been wronged, please, for the love of God, do not participate. We do not want you to feel that way, and the best solution is to not buy the coin. If you do, you’ve signed off through your actions.
Initial Price
The initial price is at a discount to what VSQ will actually be, everyone will have a fair chance to get their hands on pVSQ. There will be 70k pVSQ for the community, investors and individuals. Initial price will stand at 5 MATIC equalling to 350k MATIC if 100% is sold out. This also gives early investors an incredible incentive to participate.
We want to accumulate MATIC as this is the native token to Polygon, we will then diversify the portfolio shortly after converting to stablecoins and other high value coins.
What happens if it does not sell out?
If the full 100% of presale is not sold, the rest of the pVSQ is burned. Depending on the percent of presale sold the team, advisors and DAO supply will decrease too. For example presale sells at 10% of supply, the team, advisors and DAO funds will be 10% of supply too.
Twitter: @VESQHQ
Medium: vesq.medium.com
Telegram: t.me/vesqhq
Discord: discord.gg/KVFbg7q
Website: vesq.io
Legal Disclaimers
The information provided in this Medium Post pertaining to Vesq,
Inc. (“Vesq” or the “Company”), its crypto-assets, business assets,
strategy, and operations, is for general informational purposes only and is not
a formal offer to sell or a solicitation of an offer to buy any securities,
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contained in this Medium Post should not be relied upon as advice to buy or
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financial situation of any person. Vesq and its agents, advisors,
directors, officers, employees and shareholders make no representation or
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Additionally, the Company undertakes no obligation to comment on the
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