What is LimeWire (LMWR)?
The beginner’s guide to LimeWire (LMWR)
LimeWire started in the early 2000s as a decentralized, peer-to-peer file-sharing platform. Unlike Apple iTunes and other subscription-based media platforms growing at the time, LimeWire was free to use, albeit at a cost to record labels.
Within a short time, the platform had grown into an internet cultural phenomenon. At its peak, it enabled over 50 million monthly users to share and download files over the internet.
In 2010, LimeWire shut down after a lengthy lawsuit involving the Recording Industry Association of America (RIAA).
Over a decade later, the formerly defunct platform has now been completely repurposed under new management as a non-fungible token (NFT) exchange. Part of the new LimeWire refurbishment includes the launch of its own multi-purpose cryptocurrency — the LimeWire Token (LMWR).
Who created LimeWire?
The Head of Lime Group, Mark Gorton founded the original LimeWire platform in 2000.
In 2021, two Austrian brothers named Paul and Julian Zehetmayr acquired the company and its associated branding. They now both sit as the company's co-CEOs with extensive backgrounds in founding successful tech companies, including APILayer and Eversign.
It's important to note that the new management has no affiliation or ties to the former company whatsoever.
In July 2022, the company launched their flagship LimeWire NFT platform, followed nine months later by the announcement of its new LimeWire utility token.
How does LimeWire work?
The revamped LimeWire is a multi-blockchain technology-based membership platform where content creators can form their own exclusive communities.
Members can pay a subscription to join these communities and receive NFTs for every video, audio file, or article they receive. This feature gives users the opportunity to become owners of the content they receive from their subscriptions.
Holders can choose to keep or sell these NFTs on secondary marketplaces. Additionally, subscribers can directly message their favorite content creators to deepen community connections.
For creators, they stand to earn income from subscriptions and receive lifelong creator earnings from any secondary market sales that take place. To further increase the earning potential of creators, LimeWire will also provide a Pay-per-View (PPV) option. This factor allows non-subscribers to make one-off payments to receive specific pieces of content.
Adding to the appeal of its subscription model, LimeWire will automatically distribute an amount of PPV earnings (denominated in LMWR tokens) to subscribers.
Holders of LimeWire Token (LMWR) will be able to vote on key decisions proposed by the LimeWire Foundation. The LimeWire Foundation is the governing body that manages the ecosystem's treasury.
Key decisions may include factors such as LMWR token buy-backs, changing PPV distribution amounts, and artist fund spending.
Over time, LimeWire intends to eventually offload complete control of the platform to its community of users. Like many other modern crypto-related platforms, this is meant to build a fully decentralized ecosystem owned and run by its users instead of a single, overarching authority.
Customers can purchase LimeWire subscriptions using a range of supported fiat and cryptocurrency options. These options include crypto wallets such as MetaMask and Trust Wallet, along with credit/ debit cards and ApplePay.
What backing does LimeWire have?
In April, 2022, LimeWire successfully raised $10.4 million in a private equity round led by Kraken Ventures, GSR, and Arrington Capital. The company stated all funds raised will help guide the development of the new platform and secure new strategic partnerships.
Other prominent LimeWire investors include Crypto.com Capital, CMCC Global, and Red Beard Ventures.
What is the LimeWire Token (LMWR)?
According to the official whitepaper, the company describes LimeWire Token (LMWR) as its new upcoming utility token. It will exist as an ERC-20 token built on top of the Algorand blockchain with a fixed maximum supply of 1,000,000,000 tokens.
No new coins will enter circulation through inflationary systems. Instead, 43% will be held in a LimeWire Ecosystem Fund, split among the treasury, community rewards, and an artist fund (15:15:13, respectively).
Specific token allocations will involve monthly release periods to gradually increase the available supply of LMWR tokens.
LimeWire token will primarily serve as a governance token and means of paying fees on the LimeWire platform. Additionally, holders can expect to receive rewards ranging between 8-12% depending on a tiered loyalty system. Rewards are not staking-based, but rather paid out from the allocated community rewards part of the LimeWire ecosystem fund.
The LimeWire Token sale was expected take place in May 2023 over the course of three separate sessions:
- Community pre-sale: $0.16 per token.
- Public sale option 1: $0.20 per token.
- Public sale option 2: $0.30 per token.
LimeWire plans to sell a total of 100 million LMWR tokens during this period, with varying lockup and release periods.