The total amount invested in RSK Labs Ltd, the company operating Rootstock, is $100,000 and 28.6% of the initial seed round, representing approximately 2% of RSK.
Rootstock is a smart contract platform built as a sidechain of the bitcoin blockchain that adds value and functionality to the core bitcoin network by enabling smart contracts.
The Rootstock team includes Sergio Demián Lerner, a prominent member of the Bitcoin technical community who has designed improvements to the bitcoin protocol and created the first smart-contract enabled cryptocurrency in 2013.
In November 2015, RSK released a white paper titled “Bitcoin Powered Smart Contracts” that outlines the Rootstock platform, which has a target launch of mid-2016.
Coinsilium’s subsidiary, Seedcoin, has invested USD$50,000 in bitcoin on behalf of itself and an additional USD$50,000 in bitcoin on behalf of Coinsilium’s co-investors for a convertible instrument that provides the right to shares of RSK’s equity at a pre-money valuation of not more than US$5,000,000. Coinsilium, via Seedcoin, has therefore taken approximately 14% of RSK’s total USD$350,000 initial seed round and upon conversion to shares at a US$5,000,000 valuation, Coinsilium would hold approximately 1% of RSK.
Cameron Parry, Coinsilium’s Executive Chairman, commented:
We are delighted to announce that Coinsilium has acquired an early strategic stake in RSK and we’re excited at the prospect that the Rootstock platform can potentially deliver the strength and security of Bitcoin with the smart contract capability of Ethereum.
We are also pleased to be able to utilise our co-investor network to see Coinsilium and its co-investors contribute approximately 28% of Rootstock’s initial seed funding round.
Sergio Demián Lerner, Rootstock’s Chief Scientist and co-founder, commented:
We are excited to have Coinsilium join us as an investor at this stage of the company.
We have designed Rootstock to add value to the Bitcoin network by providing smart contracts capabilities through a merge-mined sidechain, thereby enabling sophisticated transactions as secure as the Bitcoin network. Rootstock also provides Bitcoin miners and mining pools the opportunity to participate in the smart contracts revolution and an additional revenue stream via merge-mining.