News

All locked up Elastos (ELA) coins will be returned to lock-in ELA holders on November 5

Elastos (ELA) is a new blockchain whith totally decentralized P2P economic infrastructure which authenticates digital rights, transfers contracts, and turns digital information into assets through blockchain technology.

On October 24, Rong Chen, the Elastos founder, announced that “after consulting with trusted advisors within the Elastos ecosystem, including legal experts”, the Elastos team have made the decision to unwind their ELA coins lock-up program and end it early.

The announcement reads that beginning today, lock-in ELA holders will receive an official communication from the Elastos Foundation regarding the coin return mechanism. As further described in that communication, all locked up coins, including a 4% bonus, will be returned to lock-in ELA holders on November 5th, 4am UTC.

ELA coins will also be returned to angel investors on November 20th, 4am UTC. Meanwhile, the approximately 16 million ELA currently kept by the Elastos Foundation will be allocated for holding with Cyber Republic, until its governing council is put in place in August of 2019. Also, all ELA mined in 2018 by the Elastos Foundation and through merged mining with Bitmain will be allocated towards Cyber Republic for management by the Cyber Republic Preparatory Council. At the conclusion of the unlocking period, approximately 3.5 million ELA will remain with the Elastos Foundation.

In the announcement, Rong Chen explained how they reached this decision:

“First, it is our understanding that in order to be fully compliant for expansion into Western markets, it is critical that these coins be unlocked. If Elastos is to succeed as an international project, compliance with Western laws is paramount. When we launched this lock-up program, it was not clear to us that these types of programs could be seen as out of sync with compliance. Now that we have been informed that the continuation of this program may cause compliance risk, we feel strongly that this modification is in the best interest of Elastos’ long-term success,” – he wrote, adding:

“Equally important, we want to minimize the risk that the lock-up program’s regularly scheduled annual coin unlocking could subject our community to price fluctuations that are unrelated to the overall utility of the ecosystem. It is our hope that by unlocking these coins now we will lay the groundwork for increased ELA stability as a medium of exchange in the Elastos ecosystem on a going forward basis.”

According to CoinMarketCap, ELA price is $7,39 (-13,39%) at press time.