The Launchpad concept has changed the way of investing in projects, opening a new way out of Equity or Debt: note, it does not replace it, as this type of investment is not aimed at security tokens, but at functional or utility tokens. But they represent an alternative for entrepreneurs and crypto startups that until now were limited to traditional forms of investment, based on capital increases or loans.
Platforms with Launchpad that not only have community, but also "added services" for their projects (training, tokenomics and technology development, legal support and cryptomarketing, for example) can make a lot of noise globally, starting to channel tens of millions of $ to their projects. This post is focused on the operation and benefits of this new form of investor fundraising.
1. Why IDOs are so interesting.
An IDO (Initial Decentralized exchange Offering) is a tokenization in which the investor can buy the project token under special conditions (with large discounts) compared to the public price of the token in a liquidity pool. IDOs are an evolution of the famous ICOs, where we change the concept of public and phased sale to a private sale, and then provide the token with progressive liquidity through AMMs.
Of the few IDOs launched to date in the Tutellian ecosystem (actually none through Launchpad, as we are creating it now) at the time of writing this post the 3 already liquid tokens had achieved these returns from their initial private sale to their ATH
- TUT: 700%
- POEM: 1.150%
- FITtoken: 3.700%
Other projects we have launched are still unissued or illiquid, so we cannot calculate the potential multiple they will achieve. But whatever, the important thing is that supporting projects in their infancy (and with a lot of risk) has its potential rewards.
2. What differentiates an IDO from other models.
- Compared to an ICO, the IDO seeks smaller amounts and has a very limited supply of tokens, so it is associated with a low number of investors.
- The IDO must subsequently be accompanied by liquidity in a pool. The token may also end up in a CEX (centralized exchange), but it is born in an AMM.
- The IDO issues a utility token. In our case, in addition, we stamp "a certain seal of quality" from the perspective that any project tokenized by the Tutellus Launchpad will be more than approved from a tokenomic, legal and technological perspective.
- The IDO is not accompanied by Equity or Debt.
- The IDO allows utility tokens to be purchased in a decentralized way: the holder interacts with contracts and neither Tutellus nor any entity can control what happens between the parties.
So, what do we propose for our Launchpad?
3. A gamified and tiered investment.
We have been talking about gamification for more than 10 years now, but.... Betting on a project should involve challenges, gaming and competition between investors, all for the benefit of the native token (in our case, the TUT). Therefore, the protocol rewards those who bet the most on the TUT in general and on each IDO in particular.
The protocol establishes 2 levels to be able to participate in an IDO:
- Tutellian level: minimum staking of 1.000 TUTs. It gives you access to approx. 15% of the total investment (depending on each IDO) and by lottery.
- SuperTutellian Level: minimum staking of 15.000 TUTs. It gives you access to 15%-25% approx. of the total investment but at least half of it is guaranteed; and a percentage of the most TOP portfolios (depending on each IDO) will be guaranteed 100%.
In a visual format,
Therefore, the protocol encourages high staking levels and being within the "top holders" range to get the highest possible investment. It should be noted that the protocol does not only take into account the TUT tokens to calculate our level, but also the LP tokens that we have farmed in the corresponding contract.
4. Three competing factions.
All participants, regardless of their level, must choose the faction that best represents them. Factions compete with each other to take 15% extra investment in each operation. The rules of competition between factions will be part of the game.
- Factions Nakamotos.
- Factions Vuterins.
- Factions Altcoiners.
Therefore, factions are intrinsic to the levels. Each faction is represented by a staking (TUT) and farming (TUT-WBTC) contract, and will have a certain liquidity (which we call Energy). Their holders will be able to get "extra energy" with certain actions, increasing the probability that they will be the winners of each IDO:
- Cumulative staking/farming time.
- Proportion of farming vs staking.
- Getting new holders by referral system.
- Getting TUTs for training actions.
- Sharing in networks (social sharing).
- Get associated NFTs.
- Etc.
The faction with the most extra energy at the close of the IDO will get an additional 15% of the requested investment for all its participants. In table form,
Investment tier / TotalRewards to the winner factionSuperTutellian - Top X25% - guaranteed+15%SuperTutellian - Rest15% lottery/guaranteed+15%Tutellian15% - lottery+15%
With this model the investor will be interested in increasing his/her chances of getting a larger package of tokens, going to higher staking levels and taking actions to get more energy. Higher staking levels logically benefit the TUT, increasing buying pressure.
5. Procedure for investing in IDOs.
Once we have the first IDO up and running and once we connect our account and the dAPP knows our level, we will perform 3 simple steps:
- Choose the faction we want to belong to.
- Block -in USDT- the money we want to invest.
- Participate by earning extra energy and completing actions.
At the closing of the IDO you will receive the allocated tokens (depending on the vesting of each project) and the USDT left over with respect to the total amount of money invested.
The latter amount will depend on the number of total investors and the amount that can be invested in each level and faction.
6. Next steps.
We intend to launch the first operations in Q1 2022. We already have the first project confirmed and we will probably come out with several more. This will depend on the scouting process we are carrying out and the agreements with other platforms to channel investments. It is also important to emphasize that Launchpad's vision is multichain, being able to have deals in different networks (Polygon, BSC, Avalanche, Solana, Terra and others) and receive investment through the network in which the investor feels more comfortable.
¡We continue!
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