Equibit is blockchain platform for issuing, trading, and managing both public and private equity–the type of equity that isn’t traded on a public stock exchange. The Equibit blockchain itself is a fork of Bitcoin, customized for private equity. It will allow companies to track who their shareholders are, hold shareholder votes, and record dividends distributions. Companies who wish to offer equity over the Equibit network must submit to a traditional due diligence investigation, in accordance with policies and procedures of the Ontario Securities Commission.
At time of writing, more details about the protocol hadn’t been released.
What is the token being sold?
Equibit is a digitized recreation of a blank stock certificate. An equibit has two basic states. In the null state, it is like a blank stock certificate; in this state it doesn’t yet represent equity in any company. Companies who wish to sell stocks over the network acquire null Equibits and then “sign” them. When the equibit is signed, it turns into an equibit share that represents equity in the signing company. Signed Equibits can then be split and sold to investors. Holders of Equibit shares are entitled to periodically receive dividends, paid out in Bitcoins. They can also resell their shares on the equibit marketplace.
Equibit shares are backed by the value of null equibits. If the value of the signed equibit share falls below the market value of null equibits, the shareholder can blank out the share and sell it as a null equibit. The blanked equibits can then be purchased by a new company, who can turn it into a share again by signing it. This means that the shareholder’s investment will never drop below the market value of null equibits. This mechanism also allows for failed or underperforming equibit shares to be recycled and resold to new companies.
What are the sale terms?
A total of 1 million Equibits (EQB) will be sold during the crowdsale. The sale accepts Bitcoin. The price of the first 100,000 EQB sold will be $2.00 per EQB. Every 100,000 EQB sold, the price increases until it reaches $14.93 per EQB for the final 100,000 sold. You can find a detailed pricing schedule in the Equibit ICO terms.
How is the token distributed?
There will be 22 million equibits created. 1 million will be released in this crowdsale. The remaining 21 million will be reserved for mining rewards. Initially, 50 EQB will be rewarded for every block. The block reward halves, similar to bitcoin, every 210,000 blocks. By the end of the first year, the development team estimates that there will be approximately 3,628,000 EQB in existence.
What is the project status?
The company claims the equibit blockchain technology is fully developed. The equibit team is currently running security audits on the system and working with the Ontario Security Commission to ensure that the Equibit platform complies with all the requirements of a traditional security exchange.
Who is the team behind the project?
CEO Chris Horlacher has been working in the securities industry for most of his career. He was the CFO at a startup stock brokerage and served as an advisory committee member for the Bitcoin Alliance of Canada.
CSO Brent Keivit-Kylar is a software engineer at Google and holds a PhD in cognitive science.
Lead Developer Christian Saucier is an IT Professional and management consultant. He is currently CEO of a software company located in Research Triangle Park.