Golem Network Token (GNT) Sale

[edit: please note that this post is outdated — check out the new design and whitepaper here]

With our announced DAO plans no longer being possible, we have decided to launch a token sale for the Golem network, this September 2016.

Golem enables users to buy and sell unused computing resources. This compute time can be used to process virtually any computationally-demanding task, creating the first global market for idle computing power. Golem is a decentralized, P2P network utilizing Ethereum and smart contracts as the backbone for all transactions. A fee of 5% is imposed on every transaction, to finance development and upkeep of the network. In turn, the revenue stream affords us the ability to further incentivize purchasers: our intention is to share fee revenues from the Golem network.

GOLEM NETWORK TOKEN (GNT)

GNT is an Ethereum-based token, but it will not be used for paymentsin the Golem network. The integration of the transaction system with fee and token reward mechanics will be relatively simple: rewards will be built on top of the token in a manner which ensures the security of the token and transaction fees. We believe that the design of GNT maximises our success by aligning the incentives of both GNT owners and Golem’s developers, while at the same time minimizing security issues for both the GNT holders and the Golem network at large.

HOW GNT WILL WORK

All transactions in the Golem network will be subject to a fee, approximately 5% of the transaction value. This will include both transactions between the users — payments for computing power — and transactions between users and software developers. The latter will consist of payments for the software used on the Golem network in a SaaS model. Where applicable, a blend of both open source and proprietary software will be used.

It is important to note that GNT will NOT be used for payments within the Golem network: Its only role is to grant the owner a share in the Golem network’s fee revenue.

TOKEN SALE DETAILS

Minimum financing: 100K ETH, maximum financing (cap): 650k ETH.

Note: We reserve the right to change the minimum/max financing anytime before the sale begins, pending sudden and significant ETH price movements.

A percentage of the tokens will be held back for founders, developers, and the operating company, an incentivizing endowment for further development and innovation. We define this endowment as 18% of all tokens (specifically, 6% to Golem’s founders, 12% to the operating company).

At the opening of the sale, tokens are created for every ETH sent to us, up to the cap. At the close of the sale period, we will generate tokens for both the developers and the company (only at such a point are we are able to determine how much we need to reach 18%). This is the total pool of tokens, representing entitlement to 100% of the Golem network’s fee revenue. There will be no technical possibility to create any new tokens at this point.

THIS IS NOT A DAO

The Golem Network Token does not grant its holders any voting rights or direct influence on the project’s development. The positive economic outcome for the owners is ensured by aligned incentives. In the future, Golem may evolve into a contract-driven organisation governed by GNT votes, but during the first stage, it is very much more traditional.

TIMELINE

• Semi-public Alpha: TODAY! Join our slack to participate, or read the instructions here.
• Brass Golem public alpha, opening of repo: 2nd half of August, 2016
• GNT sale locked details announcement: end of August, 2016
• Whitepaper: September, 2016
• GNT sale opens: September, 2016

CLOSING REMARKS

Golem is software designed to enhance and optimize the way we use infrastructure. By building a platform which joins efforts across a number of specializations (blockchain, compute, image processing, and more), we clearly aim to integrate use cases and projects, giving Ethereum and related technologies a wider audience that is dependent on its core functionality. We have high hopes that we will be able to facilitate such an effort, while at the same time assisting other teams in their work to apply this new approach to many new fields.