2nd Distribution Report Just Published
NEUCOIN DISTRIBUTION REVIEW
As of December 9, 2015, NeuCoin's total supply fell into these categories:
Available
154,630,397 NEU
Held by Foundations
2,701,395,605 NEU
Restricted for use or sale
574,553,668 NEU
TOTAL
3,430,579,671 NEU
Significant distribution items since the October 12, 2015, NeuCoin Distribution Review:
On November 26, 2015, 23,031,400 restricted NEU were awarded to Service Providers, including Exchanges, Strategic Advisors, Marketing Service companies and others, for services provided to the foundations from pre-launch through October 31, 2015. See details at the bottom of this report regarding the different recipients of these awards. All these restricted NEU were transferred to a wallet labeled “Service Providers #1”, which is included on the table of Restricted wallets at explorer.neucoin.org/overview.
The Service Provider #1 awards were financed as follows:
NeuCoin Growth Foundation: 3,034,000 NEU
NeuCoin Utility Foundation:19,997,400 NEU
Going forward, additional wallets for Service Providers will be created and reported on a quarterly basis. Hence, in approximately 3 months, the foundations will make a second set of Service Provider awards which will be held in a second restricted wallet called “Service Providers #2”. All of the Service Provider awards will be subject to the same 5 years sales restrictions (starting on the date that the Service Provider wallet was created) as all NeuCoins held by Angels and the NeuCoin Team.
On November 26, 2015, 2% of the “Service Providers #1” wallet (460,628 restricted NEU) became unrestricted and were transferred to the service providers and became part of Available Supply.
On October 23, 2015, 10,664,186 restricted NEU in the vault wallets for Seed Investors, Angel Investors and Team became unrestricted and were transferred to their respective owners (2% of the wallet balance on that date).
On November 30, 2015, 10,975,520 restricted NEU in the vault wallets for Seed Investors, Angel Investors and Team became unrestricted and were transferred to their respective owners (2% of the wallet balance on that date).
The NeuCoin Growth Foundation (NGF) distributed 4,755,280 unrestricted NEU to 2,536 community members for taking surveys prior to launch.
The NGF distributed 268,472 unrestricted NEU to users taking the first version of the GetNeuCoin quiz.
The NeuCoin Utility Foundation (NUF) distributed 287,500 unrestricted NEU to 87 community members as bounties for giving detailed and substantive technical feedback during testing of the NeuCoin Beta.
NeuCoins Held by Foundations
The foundations will distribute their NeuCoin endowment over time to reward and incentivize all participants who help increase NeuCoin’s utility and value. Some will be given directly to consumers so they can try out NeuCoin, or recruit others to try NeuCoin (these will be “available” at the time of distribution). Some will be awarded to service providers that make NeuCoin more valuable over time - these will have the same 5 year use and sale-restrictions as all other “restricted” NeuCoins. Some will be sold on exchanges with the proceeds used to increase the value and utility of NeuCoin - these will be immediately “available”. For more information about the foundations’ distribution of NeuCoins, please see NeuCoin’s Year One Distribution Plan and Product and Marketing Roadmap. The NeuCoin foundations will also publish quarterly distribution reports and provide details on material transactions. They will also report any sales of NeuCoin tokens on a monthly basis.
Note that all categories of NeuCoins will gradually increase from Proof-of-Stake mining, with rewards starting at a 100% a year in year 1 and gradually declining to 6% by year 10. For more information about NeuCoin’s PoS rates and economics, see detailed PoS rates, Technology & Economics Overview, and the NeuCoin Whitepaper.
Until distributed, all NeuCoin tokens owned by the foundations will be held in two types of publicly visible addresses whose transactions are verifiable on the NeuCoin blockchain:
Core Accounts
This is the where the majority of each foundation’s endowment are held and mined.
Distribution Accounts
These are intermediate addresses for near-term transactions; where foundations temporarily hold NeuCoins that are to be distributed to consumers, service providers, etc according to the Distribution Plan.
NeuCoin Growth Foundation
Core Account
NdoQ1quvqEnkNMqtSzVhTKiLrbDuKQYQz6
Current balance: 1,540,359,286 NEU
Distribution Account #1
NUbJjdF5U4vDrZmAhjCDtsQ9cnWnfZBSkB
Current balance: 33,907,833 NEU
Distribution Account #2
NR2uemGudkYbkeEvpX7CKHMzPMir5FS4ZS
Current balance: 23,873,823 NEU
Total current holdings: 1,598,140,942 NEU
NeuCoin Utility Foundation
Core Account
NRm3zEZGHMFKeFiqQRPHBrAi667Z3ZG7jT
Current balance: 860,202,493 NEU
Distribution Account #1
NachW2LivFyz7HockGuvGXW7wGp5Mfat7n
Current balance: 0 NEU
Distribution Account #2
NVY3dkMwJx7DxhxRKFRFJPgqqEA3n1V7E8
Current balance: 15,002,599 NEU
Total current holdings: 875,205,093 NEU
NeuCoin Code Foundation
Core Holdings Account
NNxGqwonJnY2WADQRAuUyj9q433WWCS4SC
Current balance: 218,049,569 NEU
Distribution Account
NcojryM6S2WgZQg5udGHuBL4hCNExPQ5AE
Current balance: 10,000,000 NEU
Total current holdings: 228,049,569 NEU
All NeuCoins held by the NeuCoin team, seed and angel investors, and service providers, are restricted: subject to strict use and re-sale provisions for five years. Holders may only use or sell 2% of their restricted holdings (including any Proof-of-Stake rewards earned thereon) per month in the first year, 3% per month in year two, 4% per month in the year three, 5% per month in year four and 6% per month in year 5. After year 5, restrictions expire.
Restricted NeuCoins are held and mined by the NeuCoin Utility Foundation in the following addresses:
Seed Investors
NbToLL7P8GbN9uNfXxatjj3UQGtWVqnxdk
Current balance: 110,288,663 NEU
Angel Investors
NddwdSJ52ynU3knupStmjebfD67auQr4kp
Current balance: 220,679,994 NEU
Team
Nc6hgNNenc8TprJKktgewUKweA8wbsGr2q
Current balance: 220,406,464 NEU
Service Providers #1 (pre-launch through Oct 31, 2015)
NWRRRVzda2V4kzYx3mJc4uqDNWRaQYPtJ
Strategic Advisors, 12,000,000 NEU
Design Services, 2,697,400 NEU
Marketing Services, 2,434,000 NEU
Community Services, 800,000 NEU
Legal & Financial Services 500,000 NEU
Total at wallet creation: 23,031,400 NEU
Current balance: 23,178,546.535994 NEU
Total restricted NeuCoins: 574,553,668.752312 NEU
At the end of each month, tokens that have come unrestricted will be transferred to their owners and become part of the available supply. That means that the above account balances will increase from PoS mining, and decrease from the monthly transfers of coins that have become unrestricted. All of the balances held in these addresses, along with the monthly transfers, are visible and easily verifiable on the blockchain at the above addresses.
Illustration of how the re-sale restrictions work in practice
Consider an angel investor who owns 1 million NeuCoin tokens on the day of launch. For the first month after launch, the angel cannot sell any NeuCoins; indeed the angel does not even have any access to the private keys for his/her tokens. During the month, assume the angel’s NeuCoins grow to 1.08 million due to POS rewards. At the end of the month, 2% of 1,080,000, or 21,600, would become unrestricted and sent to the address of the angel’s choice. At the beginning of month two, the angel has 1,058,400 restricted NeuCoins. During the month, assume this restricted coin balance grows 7.9% from POS rewards to approximately 1,142,000 coins. At the end of the second month, 2% of this balance, or 22,840 coins, become unrestricted, and will be sent to the angel’s address. And so on.
All remaining NeuCoins - all that are not held by the NeuCoin Foundations and not subject to use and sale-restrictions - constitute the “available” supply of NeuCoins. The available supply includes:
NeuCoin tokens acquired through the presale in exchange for Bitcoin
100 million NeuCoin tokens
NeuCoins earned from Proof-of-Stake rewards by staking “available” NeuCoins
approximately 2 million NeuCoins as of now (not including accrued rewards in MyNeuCoin's Growth Accounts)
NeuCoins earned from Proof-of-Work rewards
approximately 11 million NeuCoins as of now (5M per month to be created for the first year following NeuCoin's launch)
NeuCoins distributed by the NeuCoin Growth Foundation to consumers in exchange for learning about or engaging with NeuCoin in some way
4,755,280 unrestricted NEU distributed to 2,536 community members for taking surveys prior to launch
268,472 unrestricted NEU distributed to people taking the initial version of the GetNeuCoin quiz
NeuCoins distributed by the NeuCoin Utility Foundation as bounties for technical feedback
287,500 unrestricted NEU distributed to 87 active community members as bounties for giving detailed and substantive feedback during testing of the NeuCoin Beta
Restricted NeuCoins that become unrestricted according to the schedule above
10,664,186 NEU became unrestricted on October 23, 2015, and were transferred to Seed Investors, Angel Investors and Team
10,975,520 NEU became unrestricted on November 30, 2015, and were transferred to Seed Investors, Angel Investors and Team
460,628 NEU became unrestricted on November 26, 2015, and were transferred to Service Providers (pre-launch up until October 31, 2015)
NeuCoins sold or made “available for sale” by the foundations
15 million NeuCoins were advanced after launch to multiple market makers whose roles are to provide liquidity and sell NeuCoins on exchanges over time to fund the foundations’ fiat expenses. All NeuCoin sales by market makers will be reported on a monthly basis. So far none have been sold, but the 15 million nevertheless count as “available” supply.
The NeuCoin foundations intend to sell approximately $1 million worth of NeuCoin tokens during the year following launch, which proceeds will cover the foundations’ baseline fiat expenses in the second year following launch.
At this current time, there are approximately 155 million NeuCoins available for use or sale.