I think there are a couple different ways you can do it NetNox.

1. Set an IPO cap and distribute proportionally. Ex. assume there is a coin cap of 10 million coins for the IPO/Burn.

• If a total of 1 million Quarks are donated, you will receive 10 Newcoins for every 1 Quark you burn.
• If a total of 50 million Quarks are burned, you receive 1 Newcoin for every 5 Quarks you burn.

2. Establish a fixed conversion rate, ex. 1 QRK to 1 Newcoin. In this case, you can burn as many Quarks as you want and receive an equal number of Newcoins. For #2, there are a bunch of different options you can do though. For instance, you can set a limit on how many coins will be available in the sale. Ex. have a 10 million Newcoin IPO cap but still have a fixed 1:1 (or whatever) conversion rate.

Personally, I prefer option #1 because it lets the market decide how valuable the Newcoins are. Option #2 is what Ethereum is currently doing with their Ether presale. I worry this option creates an artificial price that could cause fluctuations once the coin is put on exchanges.