There have been a lot of questions about how the MobileGo token allocations are calculated. And, it is true, the math can seem a bit complicated at first. So we wanted to put together some examples to help you understand exactly how it works.
First, the MGO crowdsale is selling off exactly 70 million MGO tokens. This means that exactly 70 million tokens will be divided up amongst all participants. If you deposited, you will receive a portion of this 70 million MGO.
Second, we have different “discount” levels. The first week started with a 15% discounts for all currencies, with an additional 7% discount for GAME. The second week, the 15% discount drops to 10%, the third week to 5% and the final week to 0%.
Traditionally, “discounts” are associated with a original set price, and then a reduced amount from the original set price. For instance, a shirt is $100, it is discounted 15% so now the discount price is $85. However, in the MGO crowdsale there is no original set price. Therefore MGO “discounts” are actually weighted into your investment total.
Before showing an example of exactly how this works, it is important to remember that all deposits received are timestamped with the exact USD equivalent at the time of investment. This mean that if you deposited 10 ETH when ETH was USD price of $80, then you are credited with $800 USD value. If ETH goes up or down for the remainder of the crowdsale, it does not matter, your $800 USD value is locked.
MGO “discounts” are weighted against your total USD value at time of your deposits.
So lets show a couple of examples to help you understand exactly how the allocation works.
EXAMPLE #1: 2 Investors.
To keep things simple lets assume that there are only 2 investors in the MGO crowdsale.
Investor A: invests $1 million USD of ETH in week 1 during the 15% “discount” period.
Investor B: invests $1 million USD of BTC in week 4 during the 0% “discount” period.
Total invested in crowdsale: $2 million USD.
Allocation is calculated as follows:
Investor A invests $1 million and receives a 15% weighted bonus (discount). His $1 million is weighted to $1.15 million.
Investor B invests $1 million and receives a 0% weighted bonus (discount). His $1 million is weighted to $1 million.
The weighted totals are then added together for a total of $2.15 million USD (weighted).
2.15 million is then divided by 70 million MGO to find a weighted price per MGO.
2.15/70 = $.0307 per MGO token.
We then take this base price of MGO to calculate how much investor A and B receive.
- Investor A invested a weighted total of $1.15 million. $1.15 million/$.0307 = 37.4 million MGO
- Investor B invested a weighted total of $1 million. $1 million/.0307 = 32.6 million MGO
37.4 million + 32.6 million = 70 million MGO.
Example #2 4 Investors
In this example we will use the same formulas but make it a little more complex.
Investor A: Invests $500k worth of GAME week one and receives a 15% “discount” and an additional 7% “discount” for a total of 22% discount.
Investor B: Invests $750k worth of ETH week two and receives a 10% “discount”
Investor C: Invests $500k worth of BTC week three and receives a “5%” discount. He also invests $250k worth of GAME on which he receives a 5% “discount”+ 7% “discount” for a total of 12% discount.
Investor D: Invests $500k worth of BTC in week four and receives 0% “discount”.
Total invested in crowdsale: $2.5 million USD
Again, the first step is determining each investors weighted USD value totals.
Investor A: invested $500k with a 22% weighted bonus (discount). His weighted USD value is $610k.
Investor B: invested $750k with a 10% weighted bonus (discount). His weighted USD value is $825k.
Investor C: invested $500k in BTC with a 5% weighted bonus (discount). His weighted USD value on the BTC is $525k. Investor C also invested $250k in GAME with a 12% weighted bonus (discount). His weighted GAME USD value is $280k. Investor C’s total weighted USD value is $525k + $280k = $805k.
Investor D: invested $500k in BTC with 0% weighted bonus (discount). His weighted USD value remains $500k.
The weighted totals from all 4 investors are then added together:
$610k + $825k + $805k + $500k = $2.74 Million USD (weighted)
We now divide $2.74 by 70 million MGO. 2.74/70 = $.03914 weighted price per MGO token.
Now we take each investors weighted totals to determine their allocation of MGO.
Investor A: $610k/.03914 = 15.585 million MGO
Investor B: $825k/.03914 = 21.078 million MGO
Investor C: $805k/.03914 = 20.567 million MGO
Investor D: $500k/.03914 = 12.775 million MGO
(please note these totals have been rounded for sake of example)