After considering feedback both from skeptics and supporters of Grantcoin, the Grantcoin Foundation has decided to make some changes to confirm to the public our commitment to our charitable mission and to making Grantcoin an actively traded currency which can be spent for real goods and services.
The changes being made are as follows:
1. Reduce sales of Grantcoin on exchanges. The Grantcoin Foundation is cutting the amount of Grantcoin we plan to sell on exchanges from 10% of our currency reserve to 1% (100 million GRT). These sales will be spread out at prices ranging from $0.0001 all the way to $0.01. See the new sales plan (.xlsx spreadsheet) for details. 4% of the Grantcoin currency reserve will be placed in a long-term fund, none of which will be spent or sold until the planned sales are completed. After that, this fund may be used for ongoing expenses of the Grantcoin Foundation in the years to come.
2. Buyback up to 50% of Grantcoin sold at each price level. The Grantcoin Foundation will provide significant buy support to try to create stable price ranges and increased liquidity of Grantcoin markets. Here’s an example of how it will work: When the Grantcoin available for sale on a GRT/BTC market at 100 satoshis is sold out and the price moves above this level, the Grantcoin Foundation will place a buy order for half as much Grantcoin as we sold at that same price. The Foundation will therefore have a buy wall at 100 and a sell wall at 150. When the wall at 150 is sold out, we will place a new buy wall at 150 and sell wall at 200; and so on. Important Note: The Grantcoin Foundation does not guarantee that any price will be maintained, because traders may choose to dump into our buy walls and the maximum buy support from the Foundation is limited to the amounts disclosed in our sales plan. Even so, the volume of Grantcoin trading on exchanges would be higher, which is beneficial for the currency in and of itself.
3. Transfer 5% of Grantcoin reserve to #GrantMe programs. Half of the Grantcoin which was originally planned to be sold on exchanges will instead be set aside for grants to people and nonprofit organizations that are making a positive difference in the world. The total amount to be used for the #GrantMe programs is therefore increased from 10% to 15% of the total Grantcoin reserve. The Grantcoin Foundation will soon begin a campaign on Twitter to publicly identify thousands of #grantworthy people, projects and charities, give them small amounts of Grantcoin to thank them for what they’re doing, and encourage them to apply for larger grants in the future.
4. Launch e-commerce site with option to pay in U.S. dollars, Bitcoin, or Grantcoin. The Grantcoin team strongly believes that alternative currencies should be used as currency, not merely a speculative investment. This is the only way that cryptocurrency will ever gain widespread adoption by the public. To underscore our commitment to this principle and provide a revenue stream for the Grantcoin Foundation, we will leverage our connections in the organic foods and eco-friendly business sector to create an online retail store for people to spend leading cryptocurrencies such as Bitcoin — and, of course, Grantcoin — to buy products made by socially and environmentally responsible businesses. U.S. dollars, and possibly other fiat currencies, will also be accepted as a method of payment, to expand the store’s reach to the general public. Grantcoin will be used as a customer loyalty token: for example, customers may receive a discount or other benefits for paying in Grantcoin. More information about this project will be announced in the coming weeks as we move forward with development.
The Grantcoin team is thankful for the input we have received from various people who have looked into Grantcoin during the first few weeks after public launch of the currency. Your feedback has been important in helping us think about ways to improve our plans and strategies to make Grantcoin a success!