Token sale process: detailed description
The public launch of Papyrus Token Generation Event Round 1 is rapidly approaching, and we believe it’s just the right time to share some technicalities with our readers!
The token sale will be publicly open on the 12th of October 14:00 UTC, the date officially referred to as TGE R1 Start Date — but preparation will actually start a few days earlier. On the 9th of October a registration page will be open at our official site https://papyrus.global (beware the phishing sites!), where participants will need to fill in some personal details to undergo required AML/KYC checks. Please note, we will not require any identity document to be submitted at this stage, however submitting an ID (e.g. passport) scan will be a mandatory step before any participant can get their token. An important piece of registration details submitted at this stage is the participant’s Ethereum account address. This will be the address the PRP tokens (and any returns in ETH) will be sent to once the sale is completed — and the address the payments in ETH will be accepted from if the participant chooses to pay in ETH. It will be also possible to pay with BTC but we will not ask for any ‘sending’ Bitcoin address to save the hassle of channeling BTC through a single address. Should we need to return some amount in BTC after the sale — the participant will be requested to provide the ‘return’ BTC address via email notification.
At TGE R1 Start Date a target ETH contract address for sending payments will be published at our site (again, beware the phishing sites!), and those participants wishing to pay in BTC will be able to get a personal target Bitcoin address. So, the users will be then able to send the funds using their wallets and the obtained target addresses, in either ETH or BTC, or both — the actual transactions will be attributed to the participants based on the registered sender address in Ethereum, and the generated destination address in Bitcoin.
At the same time, the Papyrus TGE infrastructure will start processing the incoming transactions observed on both Ethereum and Bitcoin blockchains. We can technically see the transactions as they are relayed by the neighboring nodes over network even before including into any block — so we will start tracking such transactions as having pending status. We will only process transactions attributed to the registered participants (as of the time we see the transaction). Any transaction from an unknown Ethereum address will be rejected: that is, it will be logged for a later refund to the sender, and its amount will not count to the collected funds. Note, registering the sender account address afterwards will not change the status of already rejected transaction!
Once one or more transactions attributed to a given participant are included in a block, we will consider them as a single payment with confirming status, and will use this block timestamp as the payment timestamp. After we have seen 3 or 12 confirmations for Bitcoin and Ethereum accordingly, the payment will be considered confirmed. After the public sale is open, a dynamically refreshed counter displayed on the website will track the total collected funds as the payments get confirmed; the counter will be initially set to the total sum collected during the private presale phase. We do not actually expect transactions to be sent and included in blocks earlier than the sale is opened (as no target addresses are disclosed prior to the date), still we will check that the payment timestamp is strictly greater than TGE R1 Start Date and will reject the payment otherwise.
We will calculate the USD value of the confirmed payment using the ETH/USD or BTC/USD conversion rates applicable as of the payment timestamp. The conversion rates will be updated daily at 10:00 UTC based on the Price (USD) sourced from https://coinmarketcap.com as of 9:00 UTC of the same day (or the closest earlier data point available as shown on the 1-day price graph); so for the payments arriving between Oct 12 14:00 UTC and Oct 13 10:00 UTC (exclusive) the rate will be taken as of Oct 12 8:59:xx UTC. The current and previously applicable rates will be published at Papyrus site for the reference.
We will then apply the minimum limit — the confirmed payments with calculated USD value less than $10 will be rejected. Just for the first day of the public sale we will also apply the individual cap of $100 000 — for each participant we will track the total USD value of the confirmed payments with timestamps less or equal to the 13th of October 14:00 UTC, with payments added one by one in the order of their timestamps. As the sum reaches the individual cap we will split the last added payment if necessary so that the total is equal to $100 000, and will reject the excessive part (making the payment partially accepted) and any remaining payments for the first day. After the 13th of October 14: UTC we will resume accepting payments from the given participant again, but the previously rejected payments will remain rejected.
The public sale phase of the TGE Round 1 will have a hard cap of $5M less the amount collected during the private presale phase, the exact value will be announced at the beginning of the public phase. Enforcing the hard cap across two blockchains can be somewhat tricky, and we decided to apply the following approach to identify the last accepted block on each of the blockchains:
● First, we will continuously calculate the total USD value by adding the confirmed payments (with the first day individual cap applied as necessary) across both blockchains in the order of their timestamps — until adding a payment from some block (then nominated as closing block for its blockchain) results in a value equal or greater than the hard cap.
● Then we will only look at the second blockchain to determine its closing block. If it has a block with exactly the same timestamp as the discovered closing block — we nominate this block, otherwise we take the next block.
With these two closing blocks defined, we will accept all the confirmed payments in the previous blocks (again, with the first day individual cap applied as necessary). The less lucky payments in the two closing blocks will become partially accepted — we will only accept their parts calculated equiproportionally so that the total USD value accepted is equal to the hard cap. This can be illustrated with a diagram:
Once the sale is over, for all accepted payments and parts of the payments we will start collecting each participant’s ID scan and minting PRP tokens to their Ethereum addresses provided at registration, using the token price as of the payment timestamp. While you can participate in the sale and pay for the tokens without submitting the document scan, it is a legal prerequisite for actually issuing the tokens to your address. You will have up to 12 months from the date of your payment to submit the document at our site. Actually, if you submit within the first 3 weeks after the sale is over we will issue the tokens within that same period (though we may need some extra time up to 2 weeks should any technical difficulties arise). Otherwise you will receive the tokens within 3 weeks after the ID submission. And if you fail to submit the ID within the 12 months timeframe — we will not be issuing any tokens, and neither will be able to provide any refund. So please don’t miss this deadline!
And all rejected payments and parts of the payments will be sent back at the cost of the participant (or unknown ETH sender) — we will deduce the transaction cost estimated using recommended Bitcoin transaction fee and Ethereum gas price. Alas, If the calculated value to be sent happens to be zero or less — we will not return such payment and will use it at our discretion… most likely buying cookies for the team. For returns in BTC we will first contact the participant via email and request to explicitly provide a ‘return’ address.