The increased interest of investors for U Network ICO led to the fact that the developers did not have their own UUU token to maintain the ecosystem. The company launched the BuyBack program in an attempt to redeem the tokens from early investors who received them in February via AirDrop, CoinDesk reports.
According to available information, the project will acquire UUU tokens per thousand Ethereum in several stages. So, on the first of them 200 ETH will be spent on the purchase, the price of the token will be from $ 0.004 to $ 0.005.
It should be noted that at the start-up phase, the issue of tokens was limited to 10 billion.
I think this case illustrates the huge trade-offs founders face. If they keep too many tokens in reserve, they are often accused of being greedy. But if they give away too many tokens then they lose a crucial lever they need to incentivize people to use their platform or service in the future.
Professor of management and marketing, Massachusetts Institute of Technology
According to Catherine Tucker, professor of management and marketing at Massachusetts Institute of Technology, the situation with U Network proves that startups do not have a specific methodology for calculating the required number of tokens.