In the crypto world, token presales are the most popular form of crowdfunding. In some cases, presales can be held in rounds, and only a select group of investors is allowed to participate in each round. Then the network sells to the public in the final round.
Fair launch is also a form of crowdfunding in the crypto space, but the biggest difference is that the projects sell tokens for everyone to participate in a fair way. Tokens are available for everyone to buy at the same price. So what are fair launches and how do they work?
Features of fair launches
A fair launch basically has the following features:
No development or team incentives
One of the key features of fair launches is the commitment to eliminating team incentives. In fair launches, the idea is to restrict projects from issuing tokens before public access. In most cases, DeFi projects will reward developers and teams with tokens corresponding to their role in the project. However, the whole idea of a fair launch is to provide fairness and transparency. Some say that fair launches are aimed at eradicating development tokens. As a result, they don’t issue a large chunk of the total token supply before the launch.
Some presale launchpads may claim a small share of project tokens However, in the case of a fair launch, the launchpads cannot take a share of the tokens. Some may allow projects to spare a small percentage of the total supply but usually only 5%.
Fair distribution of tokens
Most presale projects offer several rounds of crowdfunding. The first round is usually for whitelisted investors who can buy tokens for a very cheap price. The second round allows the public to buy at a higher price than the first round, so fairness is impossible. Whereas in a fair launch, everyone can buy tokens at the same price so every investor is valuable.
How fair launches work
There is almost no difference in the process and functioning of fair launches in all launchpads. After a project decides to use the fair launch to attract investors, they need to apply for listing. In most situations, founders have to fill out a form. This form includes questions about the project, founder, and developer. After filling and submitting the form, the approval process begins. It includes the following steps:
Look into the applicant
After receiving the developer’s request for listing, the launchpad approving team will review the applicant. This step usually involves some background research on the project and its founders. The aim is to get to know the founders and the role of the project in the crypto space.
Analysis of allocation
Of course, as mentioned above, allocation is the key factor in fair launches. To ensure most tokens go to the public, launchpads often set a limit for development and other activities to around 5% of tokens. The launchpad will consider whether the project’s token allocation is reasonable or not.
Analysis of liquidity requirements
They will look at liquidity size, locked liquidity and many other issues related to liquidity. In most cases, 95% of tokens are liquidity for the public. Projects should lock liquidity for some time. Prior to being approved, fair launch tokens must be ready to go into lockers.
Another aspect of a fair launch is how they establish liquidity. A launch platform claims that it analyzes the project’s token and liquidity pool. The idea is to ensure the liquidity pool maintains a reasonable fund size to allow a proper fair launch to take place. In the end, there will be a good flow of transactions.
Review audit report
Of course, it is important for every investor in crypto to feel safe. Presale and fair launches participate in ensuring the security of inventors. Before allowing any project to launch, the approving committee has to check whether the smart contracts are audited.
Once the approval process is complete, the project is ready to launch. After the project was released, anyone can buy tokens from allowed exchanges or the launchpad.
By reducing or eradicating early token access, the fair launch’s mission is to bring fairness to the community. With many benefits to the community, this model is considered the future of the crypto market.
When it comes to fair launch, we can’t ignore AceStarter, a new launchpad that has officially adopted “Fair Launch” as its operating model. To know more about fair launch as well as AceStarter, please visit:
- Website: acestarter.finance
- Twitter: https://twitter.com/ace_starter
- Twitter (CEO/Founder AceStarter LaunchPad): https://twitter.com/jasontran85
- AceStarter Global Announcements: https://t.me/AceStarter
- AceStarter Global Chat: https://t.me/AceStarterGlobal
- AceStarter Vietnamese Chat: https://t.me/AceStarterVietnam
- Youtube: https://www.youtube.com/channel/UCpBU4TU1vHpb6WDdq7WbbhA
- Fanpage: https://www.facebook.com/Acestarter.finance
- Discord: https://discord.com/invite/MQdKv7TfHu
- Reddit: https://www.reddit.com/r/AceStarter/
- LinkedIn: https://www.linkedin.com/company/acestarter/