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Kleros, a dispute resolution layer for the decentralized web, has announced details of its token sale. The event will mark one of the first cases of an interactive initial coin offering (IICO), designed to provide a fairer and more transparent crowdfunding model. Inspired by a system of Greek democracy, Kleros is a dispute resolution layer for the internet era. Its use cases include escrow, insurance, e-commerce, and crowdfunding.
Kleros will use crowdsourced jurors to assess the merits of a case, consider the evidence and reach a fair decision. In return, they will be rewarded in the form of Pinakion (PNK), the native Kleros token. Kleros, which means ‘chance’ in Greek, is related to the word ‘kleroterion’, a randomization device used to ensure democratic process in Ancient Greece. The Pinakion token gets its name from the identification plaques engraved with the names of jurors that were drawn from the stone-carved kleroterion.
Kleros’ innovative approach to administering justice in the digital age is as novel as its crowdfunding model. The project has eschewed a private sale in favor of an IICO which its team believe to be more in keeping with the principles Kleros was founded on. Kleros CEO Federico Ast said:
“The Interactive Initial Coin Offering was first conceived in a paper by Vitalik Buterin along with Truebit’s Jason Teutsch and Modular CEO Christopher Brown. It was designed to eliminate deep discounting and promote inclusivity. We’re pleased to report that Modular will be assisting Kleros with implementing our IICO. This means that participants will be able to set a personal cap in ether of their choosing.”
The IICO formula sees a uniform token valuation being calculated after each participant has set their own cap, based on the total amount of ether that is contributed. Individuals can set a cap according to their level of interest in the project. The Kleros purchase protocol then removes contributors whose cap was exceeded using smart contract, beginning with the lowest bids. At this stage, individuals who have been removed have the option of setting a higher personal cap to ensure inclusion.
Initial Coin Offerings are traditionally prone to oversubscription and network congestion. There’s also a risk of misaligned incentives for both contributors and developers. Kleros’ IICO aims to solve these problems, unlocking tokens gradually for the benefit of all parties. 16% of all PNK tokens will be made available in the Kleros IICO to be held on May 15th. Thereafter, tokens will be issued in tranches until 66% of the 1 billion total supply have been made available for public sale.
Prior to the token sale commencing on May 15th, a working prototype of the Kleros protocol will be released. A video demonstration
