The BNPL Pay team confirmed that they’ll be distributing “a total of 5,000,000 BNPL Tokens, at a price of $0.04” by conducting an initial IDO through the Thorstarter Launchpad. The sale is set to begin on September 14, 2021.
The platform’s developers, which aim to take advantage of changing consumer behavior including a dramatic increase globally of pay over time services, revealed on their blog that the token sale will be held at the same price as the crypto tokens sold during their private sale rounds. There won’t be any vesting on these digital tokens, but they will “only become claimable after the conclusion of our Balancer LBP,” which is expected to run soon after “the conclusion of the Thorstarter sale.”
The BNPL Pay team noted that XRUNE will be required in order to buy BNPL Pay tokens via the IDO launchpad. Tokens will be distributed via an overflow method, where a subscription is provided at a pro-rata rate based on the total XRUNE that has been committed. Unspent tokens will be returned, the announcement clarified.
During this sale, users may commit as many XRUNE tokens as they’d like, and the final allocation made will be based on their overall percentage of the total XRUNE that was committed. There’ll be “a 24-hour window” to commit to the token sale. But there’s no real advantage given “based on time of commitment.”
Enabling Financial Inclusion with Accessible Credit Solutions
BNPL Pay serves as a decentralized lending protocol that aims to support financial inclusion. In the past, the collateralized lending market with DeFi has grown steadily. Protocols like AAVE and Compound have become multibillion dollar protocols.
The BNPL Pay team noted that they believe these major protocols have failed “to service those without capital.” While they recognize their value add, they believe “the largest opportunity is in the credit space.” And this is “something most protocols have missed,” according to the BNPL Pay team.
Even though there have been attempts to serve this particular segment, the BNPL Pay team thinks that these protocols have depended quite heavily on the “reputation of borrowers — something only the high capitalized players in the space have.”
Due to this ineffective approach, they’ve failed to serve consumers who may need access to capital the most, “just as collateralized lending platforms have,” the BNPL Pay team noted. They pointed out that with their incentive model, they intend “to engineer a sounder approach to capture the largest number of potential borrowers.”
The BNPL Pay team has further noted that the legacy credit facilities place huge barriers to entry, and their strict regulations have created an environment of “minimal competition,” resulting in “minimal innovation.” The average interest rate on credit cards can be as high as 20%, “despite living in a near-zero federal funds rate era.”
The BNPL protocol enables anyone to operate a banking node, and these nodes “compete for capital from lenders and for the loan fulfillment of borrowers,” the announcement explained. This type of system may be ideal when it comes to “reaching maximum utility for both borrowers and lenders.”
