Litepaper

For too long, speculating on the next big startup has been reserved for the few. Not anymore. Backed allows you to back startups from day one and benefit as they grow with CompanyCoins.

How does it work?

The BKD token

The Backed platform has its own native utility token, called BKD, that you can use to buy a new type of asset called ​CompanyCoins.
Verified users can buy BKD with BNB.

blockchain

BKD is hosted on the Binance Smart Chain, and all transaction are available in the public ledger.

Supply


The supply of BKD is capped at 6m tokens, making it naturally scarce. During the initial token sale phase, up to 5 million BKD tokens will be distributed according to demand. The remaining 1 million will be retained by the founding team and/or used for marketing purposes. The price will start at 0.00001953125 Bitcoin. For every 500,000 tokens distributed, the price of BKD compared to BTC will double. If we sell all 5 million tokens during the initial token sale, the price will 512x.

Our goal is to end the initial token sale phase and list BKD on at least one exchange and/or pancake swap by autumn 2022, allowing you to withdraw your BKD and sell/swap it as you wish. At this point, the price of BKD will be predetermined by demand on the exchange, and we’ll use an atomic swap mechanism to ensure every BKD sold through our website is then bought back from an exchange. This will theoretically keep demand high, which will drive up the price and allow early investors to take profits.

The Initial Token Sale Pricing Curve

Here is how the pricing curve works during the initial token sale:

What Are CompanyCoins?

Every company on Backed has a coin. Every company on the platform gets its own coin that anybody can buy and sell. We call these coins “CompanyCoins,” and you can have your own coin too simply by creating a profile. The price of each coin goes up when people buy and goes down when people sell.

To buy a company’s coin, you simply navigate to their profile and hit “Buy.” You can find a company's profile either by searching for it or by visiting the CompanyCoin leaderboard. Likewise, it’s just as easy to sell your coins. You don’t have to wait for someone else to buy them, the system will buy them back from you.

What Are CompanyCoins Useful For?

CompanyCoins are a new type of asset class that is tied to the reputation of a company and to the success of the BKD token. They allow you to speculate on the performance of a startup without needing an invite to their investment round. As a startup succeeds, gets more press and becomes more popular, others may purchase more CompanyCoins, which would increase the price and therefore value of your holdings. As CompanyCoins are also linked to the price of BKD, the more popular Backed becomes and the more the price rises, the more the value of your holding in both BKD and CompanyCoins will increase.

Company Rewards

Every time you buy a company’s coin, there is a 10% gratuity fee. That 10% is sent directly to the company's wallet and they get to keep it. That helps them grow, which in turn helps to drive up the value of your coins.

The CompanyCoin Supply Curve

CompanyCoins are naturally scarce. This is because as more people buy a profile’s CompanyCoin, the price of the coin goes up automatically at a faster and faster rate. This is known as a bonding curve.

The formula or “curve” for determining the price of a company’s coin is as follows. CompanyCoins are bought and sold with the BKD utility token.

CompanyCoin price = coins in circulation x coins in circulation x BKD price x 0.003.  When you create a profile, there are initially zero coins in existence and thus the price is zero. If you want to buy coins from the profile, it will happily mint them and sell them to you according to the price curve above, making it more and more expensive as more coins are purchased. The BKD you use to buy the coins gets “locked” in the profile in exchange for the coins. On the flipside, if you want to sell coins, the profile will happily buy them from you according to the curve using the BKD locked from previous buys. And so buying creates coins while pushing the price up and locking BKD into the profile, while selling destroys coins while pushing the price down and unlocking BKD from the profile. This is often referred to as an “automated market-maker,” and it’s the same concept that powers protocols like Uniswap and Bancor.