Ethereum-based Golem Network Ditches DAO Crowdsale Idea

Some of our readers may recall the Golem network, which runs on the Ethereum blockchain. The project creators originally wanted to build a DAO to raise enough funding for this concept. But the recent The DAO attacks have forced their hands in resorting to a traditional token sale. The Golem Network Token will be available for purchase in September of 2016.

What Is The Golem Network And Why Should I Care?

The way the Golem network works is by letting users buy and sell their unused computing resources. Many people have a computer which is not using all of its resources every time, and monetizing that “buffer” is an intriguing concept. This peer-to-peer network makes use of the Ethereum blockchain and smart contracts to complete transactions.

That being said, this project will have to generate revenue somehow. This is why the Golem Network Token was introduced, which is used for all transactions on the network. This allows the developers to build rewards on top of these tokens, which further incentivizes its users.

Having an ecosystem with free transactions would not be the best idea. Thus there will be a 5% transaction fee every time. However, the Golem Network Token is not designed to be used as a payment method in the network itself. Instead, it will grant owners a share of the network itself to receive revenue and dividends.

The Golem team wants to stress this fundraising effort is not a DAO, as there are no voting rights for token holders. Moreover, investors will have no direct influence over the project’s development. Instead, this will be a regular token sale, which takes place like any ICO would in the cryptocurrency world.

The team hopes to raise at least 100,000 Ether for their project, and there is a maximum financing cap of 650,000 ETH.Not all of the tokens will be distributed to buyers, though, as 18% of tokens will be split among founders and the operating company. One ETH will reward users one Golem Network Token. No additional tokens will be generated after the initial creation.

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