Accredited Investors and funds in the 2017 Reg D token offering purchased tokens at a $0.12 price. Blockstack PBC raised $47.5M in this offering.
Holders of Blockstack’s Series A convertible preferred stock—who had purchased a total of $5.1 million as of late 2016 and funded Blockstack’s early growth and development before the decision to create a token, or the drafting or publication of any white papers—were also provided an opportunity to purchase tokens at a nominal price per token before the 2017 Reg D offering. This opportunity to participate at a nominal price was given in return for their early support and in proportion to their equity ownership, and it was based on their reasonable expectation as early purchasers that they would receive tokens if Blockstack ever decided to create a digital token.
These tokens are subject to a three-year time lock, commencing upon the introduction of the genesis block to the Blockstack network in November 2018. The tokens for founders and employees are also subject to a three-year time lock starting November 2018.
Further, affiliates of Blockstack PBC including Union Square Ventures, Muneeb Ali, and Ryan Shea — three of the largest holders of Stacks tokens — have additional restrictions on selling tokens on the open markets.