Before the launch of the full version of our Security Tokens Issuance Platform in August, we’ve decided to give both companies and investors an opportunity to test our Security Tokens Issuance Platform without risking their funds.
STIP Sandbox is a virtual testing environment where users are able to issue their security tokens and launch Security Token Offering (STO) on the Waves Testnet blockchain. Along with that, all users are able to invest in test STO campaigns using Waves Testnet tokens — 50 testnet tokens will be automatically sent to all users after they try to invest in any available test STO or upon the creation of their own STO campaign.
With STIP Sandbox, users will be able to test all key features of STIP. Their actions on Sandbox will help us determine which features should be added to the full version of STIP and help us develop the best product for both companies and investors.
To add more value to STIP Sandbox, we’ve decided to hold the STO Contest with a total prize fund of 10 000 Waves! All projects that launched their test STO campaigns on our platform will automatically take part in it. The contest is open for everyone! It doesn’t matter if you have a working company or not, it doesn’t matter if you are planning to launch an STO in the future. You can create a company that will never exist and just make something for the laughs or our STO contest may be the perfect place to test out your ideas or new projects.
The contest started on June 11th and ends on August 6th.
3 winners (1st place — 5000 Waves; 2nd — 1000; 3rd — 500) will be chosen by users based on the amount of Waves Testnet tokens raised. Additionally to that, to be considered a winner:
(a) STO campaign must reach its Softcap;
(b) Collected funds must be sent from at least 20 STIP accounts.
One other winner will be chosen by Tokenomica’s team.
You can find rules of our contest in this document.
So let’s go over the essential steps to launch a perfect STO campaign on STIP.
Step 1: Choose a Tokenization Tool
The first step is perhaps the most important one. Tokenization tool will shape the future of your company and your campaign.
Currently, you can choose one out of three tokenization tools:
1) Stocks on Malta — a security token will represent a stock issued in compliance with Maltese regulation. This instrument will be the choice for new companies that are focusing on the EU market and plan to distribute profits between their token holders;
2) Bonds on Malta — a security token will represent debt security issued in compliance with Maltese regulation. This instrument will be the best choice for existing companies that don’t want to tie up payments to the performance of their company;
3) Stock on the Cayman Islands — a security token will represent a stock issued in compliance with Cayman regulation. This instrument will be the choice for new companies that are focusing on the non-EU markets and plan to distribute profits between their token holders.
Step 2: Think on the Message
The message is one of the most important elements of the campaign. The information that you will provide during this step will appear on the main page of your campaign.
Here are some essential tips for you:
Focus on what makes your business special
List all the details of your business and find what makes you stand out. You might have a perfect idea, you might create a great product but if your message is not comprehensive, your campaign might not be successful. Be as clear as you can be!
Determine the stage of your project
Share as many details as you can: when your company was founded, how many customers you have, your business plan. The more you tell about your company or your idea the better. If you don’t have a company, think about the company you want to build.
List your accomplishments
If you have success stories already, feel free to share them.
Add your Whitepaper
If you already have a whitepaper, you can upload it as well, it will be a massive plus for your campaign.
Add your Website
If you have a website, please add a link to it.
Step 3: Choose the Characteristics of Your Security
During this step, you will decide the characteristics of your security:
1) Who can invest in your company
Your campaign may be addressed to qualified investors only or it can be available for everyone. A public offering will provide access to a broader audience allowing you to set lower minimum investment barriers. But keep in mind that the legal structuring for a public offering is more complicated leading to higher issuance costs. The choice is all yours.
2) Token holders rights
Decide which role will token holders play in your business. You can provide voting rights for your token holders increasing their role in the decision-making process or you can limit them and keep voting rights entirely for your company.
3) Determine the total amount of tokens and its price
Carefully choose how many tokens you want to issue and the price for each token.
Next step of the process is incorporation, you can skip it on the Sandbox version of STIP.
Step 4: Token Issuance
So now that you have finished the preparation for your STO, you can issue tokens. To do that, you will need to choose the name and the ticker name for your token and set SoftCap of your STO campaign. After this, you will need to choose which Waves wallet will be assigned to the token sale. Please make sure that you have access to this wallet.
For token issuance, we use Waves Smart Assets technology. It allows us to program Tokens in accordance with legal structuring. Parameters below can be set by issuers:
All operations with tokens are allowed between whitelisted accounts only. A user can make up own whitelist.
Re-issuance of the token
Can be allowed or forbidden, depending on the legal structuring.
Step 5: Launch Your Test STO
Right after your STO is launched, your campaign will appear on our STO Marketplace. Investors will be able to purchase your tokens using the Waves Keeper. The token sale is carried out as a dApp on Waves Smart Account. The script is generated in advance so that the issuer can check it manually.
Token sale parameters
These parameters are always embedded in the script:
A SoftCap is a minimum amount needed for the project to proceed and for a token sale to be considered successful. A HardCap is a maximum amount to be raised during the campaign. For instance, a SoftCap could be 1000 Waves and a HardCap 3000 Waves meaning if the project does not attain 1000 Waves it will not proceed and also if it reaches 3000 Waves no more can be contributed. Please keep in mind that in order to be considered one of the winners of our contest, your STO campaign must reach its SoftCap.
If the token sale is successful, raised funds and assets that weren’t purchased are transferred to the issuer’s account.
The token sale starts with StartBlock and ends with Endblock (if the HardCap has not been reached before). Note! The exact time of the token sale cannot be chosen as the blockchain cannot operate with time measures.
Assets to sell
The amount of assets offered for the token sale.
Price for one asset (it can be a number or an algorithm)
Users call the functions through STIP website, signing broadcast transactions with Waves Keeper. No programming skills or other apps are required.
Step 6: Spread the Word
Just like with real STO, in order to raise funds, you will need to promote your campaign. Try the simplest marketing tools available for everyone: share the link in your social media, invite your friends and colleagues to invest in your project. Along with that, check out other projects presented on our Marketplace.
We are still working on the further development of STIP and we will be delighted to get feedback from our users. If you have any suggestions on how we can improve the final product or need any help launching your STO, feel free to contact us in our Telegram chat. Best of luck!