Particl Coin Swap

What was the Particl Coin Swap and why was there no ICO?

A voluntary contribution round was started on March 18th, 2017 and lasted for 4 weeks. During this time, existing ShadowCash coin holders were offered the possibility to exchange their SDC coins for PART coins at a 1:1 ratio.

To get funding, most projects go through an ICO round where investors exchange cryptocurrencies in exchange for an ICO coin. We instead chose to bootstrap the new Particl blockchain to the Shadowcash blockchain and go through a coin swap process on which the possibility to donate an extra amount of Bitcoin in exchange for a bonus of PART coins was added.

Particl is a new project entirely, not a rebrand of Shadowcash.

How was the coin exchange structured?

The Particl voluntary contribution round was structured much differently from traditional ICO funding rounds:

1) Absorption of the Shadowcash network and community. Shadowcash was the only ticket to participate in this funding round, therefore advantaging SDC coin holders,

2) Consideration of laws and regulations to ensure the donation seed round would not fall under the classification of a sale of securities, as the Particl coin functions simply as fuel for the Particl network.

Watch this episode of Cryptocurrency Market's Particl For Investors show on Youtube for more information.

To participate in the Particl coin exchange, exchanging SDC coins was required. Participants had two contribution choices and a variable rate added to the bonus after day 5:

Days 1-5:

      Option 1: Donate 1 ShadowCash (SDC) + $0.15 (BTC) = 1.15 Particl (PART)

      Option 2: Donate 1 ShadowCash (SDC) = 1.00 Particl (PART)

Days 6-28:

      Option 1: Donate 1 ShadowCash (SDC) + [variable market-based function] (BTC) = 1.15 Particl (PART)

      Option 2: Donate 1 ShadowCash (SDC) = 1.00 Particl (PART)

Was the coin exchange capped?

Yes, since exchanging SDC coins was required, the contribution round was capped by the amount of SDC coins. If all SDC coins would have been exchanged, no additional funding would have been possible.

Why was the coin exchange structured like it is?

It ensured that the ShadowCash community and coin holders were given credit for their support and commitment over the years. Their dedication and support have helped lay the technological groundwork for the Particl privacy platform. It also ensured the distribution of the PART coins was done in a fair and reasonable fashion that also made very difficult for large investors to own an unhealthy big percentage of the total supply.

Will there be any other funding rounds after this one?

Maybe. When the blockchain was launched, an address containing 996,000 PART coins was set aside by the Particl Foundation for a second round of funding. It is still unclear at this moment what funding strategy, if any, will be utilized. It is likely that the Particl Foundation will keep a good portion of those coins and pay for expenses directly with PART coins. At this moment, the project is already safely funded for the next 2 years.