XDM Auction Rules

Introducing Dark Matter

What you get with Dark Matter (XDM) is an asset with a limited, shrinking supply that has practical utility. The more people use XDM, the faster the supply shrinks. It’s a utility token. And it's a store of value. Say hello to the first token on the ION blockchain.

What’s the supply?

There will be 71,000 XDM tokens to start. Every time someone moves XDM on the blockchain, a little bit of XDM gets burned as a transaction fee.

What’s Dark Matter’s utility?

Anyone who wants to create a new token on the ION blockchain must spend some XDM to create the token. Gaming is the primary use for tokens, but not the only one. When game developers tokenize in-game assets, gamers can actually own and even trade them on ionomy Exchange.

How will XDM be distributed?

Half the Dark Matter supply will be distributed via Initial Exchange Offering. The remainder will be distributed via airdrops and promotions (stay tuned for details).

How much does XDM cost?

The market will decide. Price Discovery starts Monday, May 20th.

How does Price Discovery work?

On Monday, May 20th, a new market will be displayed on the ionomy Exchange featuring the ION/XDM trading pair. Platform users place bids. These bids are non-binding until execution. No trades will be executed for the first week until the Golden Hour — and in that final hour, the top orders for the Price Discovery round may execute at any time during that sixty minute period.

What happens in the Golden Hour?

The golden hour is the 60 minute period during which active orders on the books may be executed. Auction participants will not know exactly when orders will fill, but they will know the starting time of the Golden Hour window. Throughout the bidding process, orders can be added or cancelled at any time until executed. Within that 60 minute window, users accept that any orders placed may be filled. The purpose is to ensure that the final bids realistically reflect how much participants are willing to pay.

The Golden Hour will occur in the following window
Saturday, May 25, 2019, 10am-11am Central Time
(Saturday, May 25, 2019, 15:00-16:00 UTC)

Subsequent Price Tiers

The average selling price of the Discovery Round becomes the basis for all subsequent price tiers. The bidding for the next tier starts at a 10% premium, and each successive tier rises by another 10%. That means that the Discovery Round participants are competing to get the best XDM price available during the entire sale event.

There will be about one day between the completion of the Discovery Round #1 and the rest of the crowdsale. The issuer will place a series of limit sell orders, reflecting the amount of XDM for allocated for each price tier.

Round 2 starts:
Sunday, May 26, 2019, 10am Central Time
(Sunday, May 26, 2019, 15:00-16:00 UTC)

Initial Exchange Offering Structure and Rules

Tier #% for sale#XDM for salemultiplier
110%71001
215%106501.1
310%71001.2
410%71001.3
55%35501.4
total50.00%35500 

How this works (a hypothetical example)

To demonstrate how this would work in practice, consider the following example.

Sample Order Book, Price Discovery Round

Bid/AskPrice (ION)Amount (XDM)
Bid1001
Bid103550
Bid98000
Bid810650

Based on the above, assume that, once we reach the Golden Hour of Round 1, the issuer will place a market sell order for 7100 XDM (the amount allocated to Round 1).

Under these conditions, the average price for the first discovery round would be 9.38 ION/XDM and the starting price for Tier 2 would be 10% more: 10 ION/XDM.

After about 24 hours, Tier 2 would start with a series of limit sell orders hypothetically shown here at 10, 11, 12, and 13 ION/XDM. Remember, no order could be below 10 (110% of price established in Round 1):

Sample Order Book, Price Tiers 2-5

Bid/AskPrice (ION)Amount (XDM)
Ask133550
Ask127100
Ask117100
Ask1010650

As soon as participants buy all orders at 10 ION/XDM to reach the limit (for Price Tiers 2-5), then the next tier is automatically available for purchase.

The Darkest Hour

The crowdale ends at some unspecified point on Sunday, June 16th. At the moment the sale ends, the unsold supply allocated for the IEO will be removed from the market. We’re calling this, “The Darkest Hour.” Any unsold portion will be provably burned after the full 71,000 supply is generated.

Burning the unsold portion could constitute a hyper-deflationary event that will ripple through the Dark Matter tokenomics. If a portion is burned, then everyone who bought owns an even greater proportion of the XDM network.

Immediately after the crowdsale ends, the XDM/ION trading pair will become a free market. Shortly after the XDM/ION trading pair goes live, a new XDM/BTC trading pair will also open on the ionomy Exchange.


FAQ

Can buyers from Round 1 sell their XDM in subsequent rounds?

No. XDM will not be distributed to buyers until after the Initial Exchange Offering is complete which should be completed in approximately two weeks.

If XDM tokens are burned, will that reduce the number of tokens distributed through airdrops and promotions?

No. The full 71,000 XDM will be generated and 50% of that total maximum supply (35,500 XDM) will be distributed via airdrops and promotions.


Disclaimer

NO INVESTMENT ADVICE

This foregoing content is for informational purposes only, and you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained herein constitutes a solicitation, recommendation, endorsement, or offer by the authors or any third party to buy or sell XDM or other cryptocurrency in any jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

This foregoing is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing herein constitutes professional and/or financial advice, nor does any information herein constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. The authors are not a fiduciary by virtue of any person’s use of or access to this content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content herein before making any decisions based on such information, and you agree not to hold Deflation Labs, ionomy Limited, or any of their affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make with regard to XDM and/or this document.

INVESTMENT RISKS

There are risks associated with investing in cryptocurrency and such investments involve risk of loss. Loss of principal is possible. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods. A cryptocurrency’s past market performance is not a guarantee or predictor of future market performance.