BlockStack offers utility token after SEC qualification
Blockstack PBC’s upcoming token offering has been qualified by the SEC under Regulation A+. This is the first time in U.S. history that a crypto token offering has received SEC qualification. We believe this is a huge step forward for decentralized applications, internet security, and privacy.
There are over 165 applications built on the Blockstack decentralized computing network. Previously Only accredited investors could participate in Blockstack’s 2017 offering under Regulation. With SEC qualification, the general public can participate and fully interact with the network. Anyone can now join the movement to transition the world to a user-controlled internet.
According to Blockstack blog, “We decided to work with US regulators to figure out a legal framework for our token offering because we wanted to open our token offering to the general public, without excluding the US. We believe that this was the harder but better path to take. We hope that this regulatory framework will democratize access to our network and that other projects may potentially be able to use our legal framework as an example. We believe that this qualification not only benefits the Blockstack ecosystem but can help mature the broader crypto industry.”
Under the SEC Regulation A+ framework, Blockstack will conduct a $28 million cash offering. The token offering will open on Thursday, July 11th at 11:00 am Eastern Daylight Time. It will be open to any purchaser who would like to take part in the Blockstack next-generation computing network, subject to a small number of geographical restrictions. This means everyone from general enthusiasts, to longstanding Blockstack supporters, to accredited or non-accredited investors alike both in the U.S. and globally, can participate in the sale. As part of the offering, an additional $12 million in tokens will be allocated to Blockstack’s App Mining Program, which rewards the developers who create the top-ranked applications within the Blockstack ecosystem.
The token offering will fuel further growth of the Blockstack decentralized computing network. The offering provides incentives for developers to contribute to the success of a secure next-generation computing network. These tokens, called Stacks (STX), will be used to register digital assets like domain names, write and enact smart contracts, and process transaction fees on the network. The Blockstack network already supports more than 165 applications characterized by a user-first mentality and #CantBeEvil architecture. Examples include decentralized services like Dmail, a secure, encrypted email solution with no corporate intermediaries; BitPatron, a censorship-resistant membership platform; and Graphite Docs, a decentralized document management service protecting freedom of speech and privacy for jeopardized groups, like reporters.