Request For Feedback: The Swarm Bonus Pool


#1

The Swarm Bonus Pool
How to get Early Investors in IOs and maintain momentum all the way to the Last Investor by introducing game mechanics.

Note: This is a request for feedback from the community. We are considering implementing this game mechanic in an upcoming investment opportunity. Please discuss this in the thread.

Entry Fee

  • Every investment into a participating investment opportunity will have an entry fee drawn off that goes into a reward pool. The entry fee will be denominated in the crypto invested.
  • The size of the entry fee is decided by the syndicate manager. Eg, 10% of allocated funds.
  • The payer of the entry fee is decided by the syndicate manager, either paid by investors from their allocations, or from a staked pool of SWM provided by the syndicate manager.
  • Each investment places the investor in a queue to receive rewards, in chronological order.
  • Cancelling an investment results in losing the entry fee and the spot in the queue.

Rewards

  • The reward pool is paid out only if the IO is funded (the soft cap must be reached to activate the reward pool).
  • The reward pool is maintained and paid out in the same cryptocurrencies as invested.

Half the reward pool is paid out to “Early Investors”

  • Every investor gets a share, in proportion to their investment, of every entry fee that was paid by others who invested after them.
  • In effect every investor except the Last Investor will get something from this pool. The earlier you invest, the longer (and larger) your stream of rewards from this pool.
  • This creates a queue of investors by time and dollars invested.
  • (Optional for later implementation) Referring other investors allows you to jump ahead in the queue by the amount your referrer invested.

Half the reward pool is paid to the “Last Investor” - aka “The Closing Bell”

  • Once the soft cap is reached, it is certain that one investor - the Last Investor - will receive half the reward pool.
  • If the investment reaches and exceeds the soft cap by the closing date, the Last Investor is the one who made the final investment, and who wins the Closing Bell prize.
  • If the investment reaches the hard cap, the Last Investor is the one made the final investment, and who wins the Closing Bell prize.

#2

This might be a turn off for sophisticated investors. I totally understand the economics behind it though. It could be very frustrating to not meet the deadline at the end if you’re trying to be the last investor.


#3

Could you expand on why it might be a turnoff for sophisticated investors? I’ve heard this a couple of times but with no reasoning to support it, and would like to gain an understanding. The net effect is no different than providing pre-sale discounts to those who invest early, which is similar to how ICOs are typically run. And there is no additional work required on the part of any investors when compared with a typical token sale. It simply introduces a timing element to the investment process, and is intended to increase the chance of the opportunity being funded.


#4

I think it’s the way you frame it. The word gamification is bad for investors looking for like…certainty and reliability…maybe just call it a first-in offer or something. Same goes for “prize”


#5

Thank you that’s useful information.