Proof of Use and Transferability
Summary:
Our goal is to create a vibrant, active community of CVL token holders who believe in and will help advance our mission. A key part of achieving that goal is getting CVL tokens in the hands of the right people — i.e., people who actually want to participate in and support the Civil network. To that end, we are preventing people from buying tokens if they plan to just “flip” or resell the tokens. Before each purchaser in the token sale can transfer or resell any CVL tokens, they will be required to ‘prove use’ of a portion of the tokens they purchase. The portion of tokens each purchaser must use, and what they have to do in order to ‘prove use’, depends on the USD($) amount of tokens purchased in the sale as outlined below:
- Ordinary Course Buyers (below $10,000) must use at least 25% of CVL tokens purchased in the token sale
- Specifically Approved Buyers (above $10,000) must use at least 50% of CVL tokens purchased in the token sale
Methods of Proving Use
Proving use may be accomplished by doing one or multiple of the following:
- Add Newsrooms: Propose a newsroom for inclusion in the Civil token curated registry (TCR), aka the Civil Registry.
- Vote: Participate in a Civil TCR vote for changes to the Civil Constitution or registry.
In-Network Transferability
Until Proof of Use is satisfied, each purchaser can only use their CVL within the Civil network for their intended purpose. After use is proven, transfers and/or sale of CVL tokens are enabled only between ‘Attested Consumers’. Attested Consumers include all successful token sale registrants and any user who successfully answers questions on the Civil website proving they understand how CVL tokens are used and that they actually intend to use the CVL tokens for their intended purpose.*
Term of Proving Use
The Proof of Use requirements will be in place for 12 months from the conclusion of the CVL token sale, at which point the requirements will lapse and CVL will be freely tradeable. The Civil Media Company reserves the right to extend these restrictions beyond 12 months if it deems the Civil network not to be sufficiently decentralized.
*You will not be able to transfer any CVL tokens until you ‘prove use’. The CVL tokens you purchase in the token sale will be non-transferable until then, and can only be transferred between the CVL network and the two (2) wallet addresses you specify: the first being the wallet you use when purchasing CVL tokens (the wallet address you send ETH from, and where the CVL tokens you purchase will be sent to; the second being an additional wallet you can add for easier use. Details on how to add an additional wallet for easier use will be shared with purchasers after the completion of the sale. We recommend purchasing CVL tokens in the token sale from the wallet you typically store tokens in, and adding a wallet more suitable for using the tokens (at a later date). If you lose access to wallet that is holding CVL tokens, you will lose your CVL tokens. Please keep this in mind when deciding what wallet to purchase and use CVL tokens from.