[ Figures below may have changed. Please consult the current information.]
Today, we are announcing the amount, distribution and use of proceeds from the upcoming Basic Attention Token (BAT) sale.
In the upcoming BAT sale, we are targeting sale proceeds of as much as $15 million and a cap of 1 billion tokens. We do not plan to have a follow-on offering.
As we near the sale, we will provide specific instructions on how to participate, including how you will need to send Ethereum (ETH) to a smart contract at an address that we will disclose.
In the token sale, we plan to distribute tokens in the following proportion:
- Tokens available for token sale: 70%
- The BAT development: 20%
- User growth pool: 10%
The token distribution covers the phased release of software previously described in the white paper. The first phase involves the roll-out of a new browser, Brave, a fast, open source, privacy-focused browser that blocks ads and trackers, and contains an opt-in ledger system that measures user attention — without violating privacy — to accurately reward publishers. The next phase involves the introduction of BAT, which will be used to compensate publishers for user attention, or focused mental engagement.
Part of the token distribution will be given to Brave browser users to incentivize them to join the new blockchain-based system. A certain number of users will receive BATs for downloading the Brave browser. Users will be able to spend these tokens for regular or premium content, or they can donate them back to their favorite publishers.
The bulk of the Ethereum proceeds from the token sale (the 70%) will be used to support the development and growth of the BAT ecosystem, which includes the Ethereum-based smart contract system and the Brave browser. It is important to note that the Brave browser is just one platform for BAT and our goal is to lay the foundation so that other developers can build other apps in the BAT ecosystem. The vision is that BAT will be used across the web to reward producers for great content in new and innovative ways.
Here is a more detailed breakdown of how we plan to spend the proceeds we receive. 20% of BAT created during token sale (in addition to ETH raised) will be used for development, marketing, operations, and other costs:
- BAT Development 58% of budget: The team consists of just over 20 engineers. This financing allows for the rollout of the BAT solution, including the necessary adjustments to and development of the existing Brave browser technology.
- Contingency 7% of budget: This is a set-aside to plan for unforeseen costs.
- Marketing 12% of budget: Marketing will focus on expanding awareness and adoption of the Brave browser and the BAT solution among users, publishers and advertisers. This also includes the growth and maintenance of the world-wide community.
- Contractors 13% of budget: These proceeds will be directed at third-party providers offering engineering, marketing, growth-hacking, PR, partnerships, affiliate programs and more. Administration 10% of budget: Consists of BAT legal, security, accounting and other associated administration costs.
We’ll be sharing the date and time of the token sale soon, but meanwhile, to remain notified of the latest updates, please sign up for our newsletter via our homepage if you have not done so already. We welcome your feedback, so if you have any, please reach out to us on Twitter, Slack or Reddit.