A few days ago, I had covered the LevelNet project and praised their innovative concept, giving it a score of 21/30. I docked some points in the Trading sector; the project creators got in touch with me and explained that they have a mechanism in place through which ICO contributors will have a safety net protecting any short-term losses. Enter the BuyBack Fund.
The LevelNet team has come up with a very simple yet interesting system through which a sort of escape route is offered to ICO investors. Part of the contributions during the ICO will be assigned to a BuyBack Fund, which will be set up sixty days following the end of the ICO. The BuyBack Fund will be governed by a smart contract and will continue running until all the funds on the BuyBack Fund are exhausted. The buybacks are conducted on a daily basis at different times, and the amount spent on buybacks depends on the amount of LVL tokens sold during the ICO.
This buyback mechanism serves to provide liquidity to the market as well as give the investors a higher level of assurance. It also injects value into the LVL token as the redeemed/bought-back tokens are destroyed, thus reducing the circulating supply and as a result increasing the value of the remaining LVL tokens.
This approach has been undertaken by Quantum and has helped stabilise the price. LevelNet's method is more polished and, in conjunction with the utility of the token itself, makes the project even more interesting.
For this reason, the LevelNet score has been changed to 23/30, and we are quite eager for this ICO!
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