Quote from: kingbtcvl on October 28, 2014, 10:09:08 AM

Quote from: mxxxxxx on October 27, 2014, 07:47:24 AM

Quote from: kingbtcvl on October 27, 2014, 07:35:47 AM

could you please explain how the 10 % discount using any of the participating coins will be managed exactly?
considering for example the nhz:block pair on poloniex when and how will the its price be determined? will it be a fixed price or will automatically adjust to the current btc:nhz price?

You will be able to buy with participating coins at a 10% discount through Coingateway , it is very simple to use

You don`t have to register there , you're given an address to pay your participating coin to, and you enter an address to receive BLOCK tokens

The reason for this is that only BLOCK:BTC pairings will persist after the ITO. Exchanges won't be keen to add a pile of new pairings only to remove them shortly afterwards. Unless exchanges decide to do any additional pairing.

For pricing, we'll pick prices of Blocknet tokens at the start time of the ICO based on a recent average (exact algorithm TBD). Then we'll deduct 10%, and put up a sell wall there.

Any discrepancies in price between coins will be arbitraged by traders, and so the market will converge on a 10% discount no matter what coin you use.

Supply of BLOCK tokens will be distributed accordingly , supplies will be moved from one place to another if it is needed

thanks for your answer. one last question concerning the pricing using the NHZ example again:
what does prevent a NHZ whale from pumping the BTC/NHZ price and putting a decent buy wall a few hours before the ito starts increasing its recent average such that the token/NHZ price will be determined to his favour and then selling a lot of NHZ for an awesome price. i mean the buyers of the NHZ wont have any disadvantages as in that case the token/NHZ price is determined so that they can buy the blocknet token for the 10% discount, so that they actually wont care about the high BTC/NHZ price.

What prevents whales pumping NHZ is that other whales could equally cause NHZ to dump, buy them cheap, and get more ITO tokens.

Ultimately what the ITO means is that the value of participating currencies tracks the exchange rate of BLOCK. Any deviation up or down gives rise to arbitration opportunities between participating currencies, so their prices will all converge around their price relative to BLOCK.