To Our Community,
Launching Elastos has been the culmination of my life’s work. A work that has been dedicated to rebuilding the relationship between our devices, our internet, and ourselves. A work that is dedicated to giving power back to people like you. In the last year, we have earned the support of leaders both within and outside of the blockchain industry and built much more than a community — with increased system-wide use cases being built and launched on Elastos, we are continually growing our digital nation. All of this work stands on the strength of our technology and the team building it, and we have established Elastos as a model of success, capable of redefining industry standards.
Along the way, the team has learned that meeting our long-term vision often requires swift action and strategic adaptation to the needs of our fast-growing community. As a valued community member, I want to personally update you on some news regarding ELA coins. After consulting with trusted advisors within the Elastos ecosystem, including legal experts, we have made the decision to unwind our lock-up program and end it early.
Beginning today, lock-in ELA holders will receive an official communication from the Elastos Foundation regarding the coin return mechanism. As further described in that communication, all locked up coins, including a 4% bonus, will be returned to lock-in ELA holders on November 5th, 4am UTC.
ELA coins will also be returned to angel investors on November 20th, 4am UTC. Meanwhile, the approximately 16 million ELA currently kept by the Elastos Foundation will be allocated for holding with Cyber Republic, until its governing council is put in place in August of 2019. Also, all ELA mined in 2018 by the Elastos Foundation and through merged mining with Bitmain will be allocated towards Cyber Republic for management by the Cyber Republic Preparatory Council. At the conclusion of the unlocking period, approximately 3.5 million ELA will remain with the Elastos Foundation.
As a matter of openness, honesty and transparency, I would like to explain how we reached this decision. First, it is our understanding that in order to be fully compliant for expansion into Western markets, it is critical that these coins be unlocked. If Elastos is to succeed as an international project, compliance with Western laws is paramount. When we launched this lock-up program, it was not clear to us that these types of programs could be seen as out of sync with compliance. Now that we have been informed that the continuation of this program may cause compliance risk, we feel strongly that this modification is in the best interest of Elastos’ long-term success. Equally important, we want to minimize the risk that the lock-up program’s regularly scheduled annual coin unlocking could subject our community to price fluctuations that are unrelated to the overall utility of the ecosystem. As you may be aware, in the past, these unlocks — though incremental — have unintentionally impacted the community. It is our hope that by unlocking these coins now we will lay the groundwork for increased ELA stability as a medium of exchange in the Elastos ecosystem on a going forward basis.
I want to emphasize that Elastos is a truly global project positioning itself as a mainstay of the next phase of the internet. To do this, we must navigate not only an industry in its infancy but also the challenges that come with it. As we continue to grow and realize our vision on a global scale, we feel that Western adoption is essential. I hope that you understand that we believe this approach is what is best for our project.
I consider it an honor to have all of you with us on this journey.
October 24, 2018