Kleros Token Sale: Frequently Asked Questions
It has begun - the Kleros token sale is upon us. This FAQ can answer many questions. Have a look inside.
Welcome to the Kleros Token Sale - have a look below for answers you might be looking for.
What is Kleros?
Kleros is a protocol based on blockchain and crowdsourcing which provides fast, secure and affordable arbitration for a wide variety of use cases. For a quick overview of the project, watch this explainer video:
What are some use cases of Kleros?
Kleros is a multipurpose arbitration system able to handle a large number of disputes:
- Alice claims that the good she bought from Bob in an e-commerce platform is defective. The jury votes for Alice and she is reimbursed.
- Alice raises money with a crowdfunding campaign. The jury votes that she failed to meet critical milestones. Buyers are reimbursed.
- Alice flags Bob for an inappropriate comment in a decentralized social media platform. The jury decides that Bob violated the terms and conditions. He loses reputation points and the content is removed.
- Alice flags Bob’s song for plagiarism on a decentralized music platform. The jury determines that the song was plagiarized. Revenue from the song is redirected to Alice.
- Alice flags Bob for cheating in an online gaming tournament. The jury analyzes the recording of the game and votes that Bob is guilty. Bob is banned from the platform.
What have you built so far?
- The Kleros Court is our core Dapp which brings the power of Kleros crowdsourced juries to a wide range of applications. There are currently 193 jurors staked with 65 unique jurors drawn to arbitrate over 130 cases. 2020 will likely see these numbers expand greatly.
- Our Token² Curated Registry, with over $350k of transactions including 214 ETH paid out to jurors since its inception. Our T2CR was used in the first ever decentralized exchange listing partnership with Ethfinex and will be used by DeversiFi and Gnosis DutchX amongst others in 2020.
- Kleros Escrow is a fully decentralized dispute backed escrow service bringing trust to contractors, freelancers, traders and pretty much anyone who’s looking to transact services or goods using cryptocurrency. Users can create an escrow in ETH or any ERC20 token which has the appropriate badge credentials in our Token² Curated Registry.
- The Realitio Oracle enhanced by Kleros arbitration, allows for off-chain data to be verified. Users can ask any kind of questions using cryptoeconomics + Kleros jurors to receive fast and efficient responses in a fully decentralized manner.
- Uniswap Ninja is a Uniswap front-end which allows tokens verified in the Kleros T2CR to be exchanged.
Why do you need a token?
The PNK token is required to protect the system against the sybil attack and to provide jurors an incentive to adjudicate disputes honestly. PNK cannot be replaced by ETH as this would greatly increase the risk of a 51% attack. To learn more, read the article "Why Kleros Needs a Native Token".
How many tokens will be created?
1 billion PNK will be created in total.
How are tokens allocated?
You can see the token allocation in the image below.
Why are you running your token sale in more than one round?
Instead of doing one large sale at the beginning of the project, we decided it was more responsible to conduct the sale in a number of rounds, as we can prove our ability to deliver on our promises. We sold 160,000,000 PNK in the first round and are selling 150,000,000 PNK in this round. To learn more about our token sale strategy, read this article.
How was your first sale?
160,000,000 PNK were sold in the first sale that ran from May to July 2018, using the Interactive Coin Offering mechanism. To learn more about the first round, read this article.
What did you do with the money from the first round?
You can see the disbursment of funds in our recent Community Update and Development Update respectively. You can also look our Transparency Report.
How does the sale mechanics work?
Starting on January 11th 2020, 16:00 UTC, Coopérative Kleros will release for sale 150,000,000 units of the PNK token.
NOTE: Send your contributions directly from your personal wallet (such as Metamask) - do not use an exchange wallet, or your PNK will be sent to the exchange account.
There will be two ways to interact with the sale:
- Simple way - In the simple way, you can just send your contribution in ETH directly to the sale contract. You will get the lowest possible price for PNK (the cheapest steps fill first).
- Advanced - By using a web3 browser, you can have more control over your contribution. The token sale interface works with a number of steps containing a large amount of PNK for sale. You have two options in the contribution section: a chart showing the steps and a table with details about the quantity of PNK and price in those steps.
You can allocate a set amount of ETH to any of the available steps. Once the transaction is confirmed, the PNK will be sent to your wallet immediately.
For more details on how the sale will function, have a look at this article.
Who wrote the code for the token sale?
The code for the sale was created by the Kleros team and was audited by an extensive bounty program. Eight people participated in the audit.
Which currency can I use for my contribution?
The sale only accepts contributions in Ether (ETH).
When will I receive my PNK?
You will receive your PNK immediately after making your contribution.
What will you do with the money you raise in this round?
You can read about our roadmap here and here.
What will you do with the remaining tokens that were not sold in the first or second round?
Part of these tokens will be sold in further rounds and are also available for OTC sales. Another part will be used as an additional incentive for early jurors in the platform.
In which exchanges is PNK listed?
PNK is currently listed on IDEX, Bitfinex and Uniswap.
What is Kleros’ legal entity?
Kleros is incorporated as a Société Coopérative d’Intérêt Collectif (SCIC), a type of cooperative under French law. All revenue from the token sale will be kept as an unshareable reserve. Funds can only be used for project development and cannot be distributed as dividends. To learn more about Kleros’ legal entity, read this.
I love the project. How can I help?
There are different ways for you to contribute to the justice revolution. Are you a coder? Take a look at our Github.
We are also actively seeking for pilot opportunities. If you think you can help with this, please send us a message from our website. If you want to join the community, come to this Slack.
Where Can I Find Out More?
Join the community chat on Telegram.
Visit our website.
Follow us on Twitter.
Join our Slack for developer conversations.
Contribute on Github.
Download our Book
