Tiers are probably the most discussed argument in Launchpads
We see projects trying to solve Tiers dilemma by adding more and more variables to Tiers levels, instead of doing this we will address the problem by simplifying things.
We will try to be as clear as possible, avoiding using a lot of math formulas.
So, let’s start with a very simple example.
Project “X” is a famous Launchpad with 4 different tiers:
- Bronze 500 tokens
- Silver 1,500 tokens
- Gold 4,500 tokens
- Platinum 9,000 tokens
If you’re smart you will easily understand that actually there is something wrong with this and other Tier systems in general, for example:
- I own 10,000 tokens and I’m qualified for Platinum:
Why should I keep the 1,000 extra tokens in my wallet if there aren’t benefits?
Why should I not sell them on the market?
- I own 4,500 tokens and I’m qualified for Gold, I don’t have enough money to double my allocation and qualify for the Platinum tier:
Why there isn’t any incentive to make me buy more tokens?
These are just some of the many questions that come naturally when looking at actual tier systems.
Also, we will not mention not guaranteed allocations, different phases, disproportionate pool weights and such, otherwise, we would have to write a separate article just to talk about these things that favor someone to the detriment of others.
From all this, comes our idea of a fair and proportional Tiers-free guaranteed allocation.
How it’s possible to achieve all these things together?
- Fair and proportional
- Guaranteed allocation
It’s simpler than you think.
- Fair and proportional
In this way, every single token matter.
Let’s make a very simple example:
This means that for every CROSS that you stake, in this example you will be able to purchase 0.2 tokens.
If you want to know the exact amount of tokens that you can buy, you can use this formula:
In the example, since CROSS held are 25,000 this is the purchasable amount of tokens:
In this way we disrupted the concept of tiers by giving the possibility to everyone to be eligible for a guaranteed allocation, no matter how many tokens are held.
This way, we incentivize the purchase of our tokens, because every single $CROSS you add on your wallet will impact your personal allocation and you don’t need to reach a specific threshold to be able to increase it.
*there will be a small amount of tokens required to be eligible, which will be announced after the tokenomics.
With this innovative system everyone will have a guaranteed allocation. In the following formulas we describe how the system works.
The guaranteed allocation for every user during the first 24hrs of the IDO will be calculate as following:
- ‘a’ is the project’s token allocated for IDO.
- ‘b’ is CROSS circulating supply.
- ‘c’ is CROSS that you’re holding.
If the IDO hard cap is not reached during the first 24hrs, all the eligible users will double their initial guaranteed allocation, allowing them to buy 2 times more the tokens they bought during the first 24hrs. This means that if your initial guaranteed allocation was 50 tokens, after 24hrs you can buy 100 more tokens, after 48hrs 200 more, after 72hrs 400 more, as described in the following formulas, until hard cap is reached.
Anyways, since after 24hrs the IDO will be FCFS, it is very unlikely that the hard cap won’t be reached during the 2nd day.
This chart describes the progress of the tokens purchasable during the various phases of the IDO.
You can see how rapidly it increases, that’s why we are pretty confident that on day 2 there will be almost 100% probability of reaching hard cap.