Blockchain-based distributive application project Factom concluded yesterday at 8 am PST its token crowdsale, selling 4,379,973 Factoids to over 1,500 people. The grand total of funds raised over the Koinify crowdsale platform was 2,278 bitcoins – approximately USD 541,548 at today’s price.
Factom Foundation CEO Paul Snow commented after the sale completion:
It has been incredibly humbling to receive such an enthusiastic welcome from the bitcoin community. The Factom Foundation wants to thank each of you for helping to secure the future of the Factom Project and allow us to bring our dream of more honest systems to fruition. Over the next few months we will continue to improve the Factom API and educate developers on how to incorporate Factom into their software
Factom plans to release a stable working beta software product in the third quarter of 2015, and reports developers and businesses can begin to build on top of the Factom application layer. Coding tools and documentation for developer is on the Factom Project’s GitHub site.
Factoids become usable and tradable with the beta release of the Factom client. The Factom network will begin rewarding the federated servers after its third development milestone is complete and all 32 federated servers have been elected. Backers of the crowdsale, through a Factom wallet, can use their Factoids to buy “Entry Credits” or send them to fellow Factom customers.
According to Factom, users will be able to redeem Factoids in the following way:
When the system goes live, there will be a basic command line wallet. With this wallet, users will be able to create a Factoid transaction. They can redeem Factoids for the Entry Credit Public Keys. The master passphrase can be entered into this wallet to create the crypto signatures needed to reassign the Factoids to other addresses or to purchase Entry Credits. Easier to use wallets will be developed later on.
Factom notes that users can verify their “software token” sale identity and receive on-chain Factoids because the Koinify wallet sent bitcoins to:https://blockchain.info/address/35gLt5EgB367enjSjyEDahhWWcy6p1MGf6 and each payment was tagged with an “OP_RETURN value”.
When the Factoid genesis block is created, all the people who sent in Bitcoins will be credited with the appropriate number of Factoids. Factoid wallets will be able to assign those to new Factoid addresses or redeem them for Entry Credits.
Factom also confirmed that it is building a CLI wallet for Factoids that is rudimentary and usable by command line users and computer programs.
For its second development milestone, Factom will set up a storefront where businesses will be able to use Factom without touching cryptocurrency.
According to Koinify and Factom, fund allocation and token issuance strategies are summarized as following:
Funds from the Factom crowdsale will be primarily used for making sure Factom developers are incentivized to improve the product beyond their initial release, according to Factom and Koinify. Specific costs are found from the development of the network infrastructure, paying for servers, paying for bandwidth, marketing and branding, as well as legal and business development.
The Factoid is the underlying token that allows you to hash something into the Factom network. The initial supply is determined by the amount of Factoids sold during the software sale.