The Bancor Network Token activation event is planned for Thursday, June 22 at 2pm GMT. This means that BNT will become transferable between wallets, and will also enable exchanges to list it. We will be updating this post with exchanges we know of listing BNT as they come online.
In addition and at the same time, BNT will become the first Bancor protocol powered Smart Token, allowing anyone to purchase it with its reserve token (ETH), as well as liquidate it to its reserve token. The starting price will be the same used during the TGE: 1 BNT = 0.01 ETH (or 100 BNT per ETH). This price will then move according to the buy and sell volumes, as outlined in the formulas in our white paper, while maintaining a 10% ETH reserve. For the most current BNT smart contract rate, please visit the dedicated page on our website.
As we detailed in our recent Learning from TheDAO post, our plan is to activate the BNT pilot carefully and gradually while keeping the minimum required amount of ETH in the contract at first. We may need to temporarily turn-off the Bancor protocol (i.e. direct smart contract trading) during the pilot period if technical or other unforeseen concerns dictate it. We will announce all developments in our channels. This is part of our strategy to centralize some aspects of the software development until such time as both the Bancor protocol and the Ethereum blockchain are ready for smart tokens to be immutably locked and thrive on their own. Please remain vigilant during noisy times against scammers who may try to lead you to believe they have alternate addresses where you can purchase BNT. Always confirm information through the official Bancor website: https://www.bancor.network and check carefully for well disguised copy cat accounts or sites.
BNT can be traded directly using its smart contract outside of exchanges. We have created detailed explanations on how this can be done using popular wallets, and will update this list:
- imToken (a great wallet with native support for BNT)
- For buying only: Our direct smart contract (alpha)
In the future, you will also be able to purchase and sell BNT directly from the Bancor application service (https://app.bancor.network) alongside its smart token creation and management functionality.
In the case that BNT is traded through exchanges, in addition to through its smart contract, arbitrageurs are expected to balance prices between these different liquidity providers. The smart contract will act as an additional, more price-stable exchange. To better understand how BNT purchases will impact its price, here are some examples:
- Additional net purchases from the BNT smart token contract equivalent to 20% of the TGE supply (~80,000 ETH) — will raise BNT price by 87% (to 0.0187 ETH) and increase the supply of BNT by 7%.
- Double that amount of net purchases will raise the price by 167% (to 0.0267 ETH) and increase the supply by 12%.
- See more in this example spreadsheet which you can download and edit.
In the coming weeks, following the completion of proper audits of the new code, we will deploy the automated price floor contract which we announced in our blog post, The Community of the Currency. In the meantime, Bancor will manually deploy a price floor as needed.
To the road ahead,
The Bancor Team