StarLaunch: Basic Training
A Commander’s Handbook
Welcome to StarLaunch Basic Training! It’s time to share with our community the mechanics of StarLaunch and what to expect next month.
Our team is pioneering a novel approach to the IDO allocation model by introducing a dual token system that features both a deflationary governance token ($STARS) as well as a secondary utility token, “Hydrazine” ($N2H4), which will be used to gain access to IDOs. We are thrilled about the StarLaunch model.
$STARS and Hydrazine
Staking the StarLaunch governance token $STARS in the Fusion Vault generates Hydrazine ($N2H4), which can be used as fuel for gaining access to vetted Solana projects launching through the platform. STARS will be instrumental in community voting, particularly once the platform launches its DAO, and becomes fully decentralized. STARS holders will also be able to vote on new functionality that will be brought to StarLaunch.
STARS staked in the Fusion Vault undergo conditional radioactive decay with a half-life of 90 days while producing Hydrazine, making STARS deflationary by design. Decay can be avoided by locking your stake which shall be explained later in this handbook.
Figuratively speaking, staking STARS produces fuel (Hydrazine) that is required to participate in an IDO. Hydrazine is a one-time-use-only utility token — Hydrazine tokens utilized to participate in the IDO are permanently burned out of circulation. IDO allocation size is directly and linearly proportional to the amount of Hydrazine applied for that given IDO, with a cap on the max amount per KYC’ed wallet that can be used.
How to use Hydrazine ($N2H4)
It benefits users to continue to hold STARS and stake earlier, as doing so will allow for greater accumulation of Hydrazine over time, which thereby gives the user more “fuel” needed to participate in more IDOs and with larger allocations. STARS holders will also be able to sell their Hydrazine on our P2P market, in the future. If, for example, a user is not interested in participating in a specific IDO, they can elect to forgo participation and continue to accumulate Hydrazine for a future IDO or sell it to users who are more interested in that particular IDO, but do not have enough Hydrazine.
The rate of Hydrazine generation is fixed per block; generated Hydrazine is distributed proportionally to users based on how many STARS they have staked at any given time vis-à-vis the total number of STARS in the Fusion Vault. There is no total supply for Hydrazine; it is continually minted through staking STARS and is episodically burned as IDOs occur.
There are two ways to stake STARS tokens:
1. Stake Only
2. Stake & Lock
Both manners of staking will accrue Hydrazine. STARS that are staked but not locked are subject to a 90 day half life and will undergo an approximately 0.77% daily decay rate in accordance with our programmed deflationary mechanics.
STARS holders can choose to stake and lock their tokens to be exempt from decay and still earn Hydrazine. Note that the current locking period is 90 days. We understand that some of our community members may need to unlock their tokens earlier. In this instance, users who unlock STARS early will be charged a fee of 50% of the prorated decay rate left in their lock period.
Here is an example of the staking and decay mechanisms:
- Alice keeps 100 STARS tokens staked but not locked. Her STARS are decaying, and she is generating Hydrazine. On day 20, Alice will have 14.28 tokens decayed, with 85.72 STARS remaining.
- Bob stakes and locks 100 tokens for 90 days. His STARS are not decaying, and he is generating Hydrazine. Bob wishes to unlock his tokens early on day 20, compared to the committed 90 day lock. He will be charged a penalty of 50% of the decay fee for the remaining 70 days. The decay for 70 days is 41.67 STARS, so the early unlock fee shall be 20.84 STARS that shall be burned.
Participating in an IDO
Hydrazine tokens are required for participating in IDOs. Hydrazine can be claimed from the Fusion Vault by staking STARS or they can be purchased from an exchange. Each participant will receive an IDO allocation proportional to the relative contribution size of their Hydrazine in the pool. For example, John uses 100 Hydrazine to participate in an IDO. The total IDO pool collects 10,000 Hydrazine contributions. John will receive 1% of the IDO allocation (100/10,000). To ensure fairness, every participating wallet will be capped at 1% of the total IDO allocation.
Note that all Hydrazine tokens used for participating in IDOs will be burned.
StarLaunch Insurance Coverage
Backing early-stage projects should be exciting. While there is always an aspect of risk in startups, users shouldn’t have to worry about their decisions. StarLaunch provides IDO participants a safety net (up to 100% coverage) in the event a project doesn’t go as planned — at no cost to the user.
Our policy covers incidence not limited to:
- Team Negligence
- Project Abandonment
StarLaunch will maintain an insurance treasury, designed to provide our community security and peace of mind. A detailed breakdown of our insurance policy will be defined in a later article.
Benefits of the model
We pride ourselves on placing the community first.
- Produces user rewards for staking its primary governance token.
- Rewards community loyalty. As the longer STARS tokens are staked, the more Hydrazine is generated, translating to greater allocation size and buying power in any given IDO.
- Incentivizes users to learn about the projects being launched through StarLaunch and choose which projects they wish to truly participate in. A “skipped” IDO simply means more Hydrazine (and greater allocation size) for the next IDO of interest. If there is significant community interest in a particular IDO, selling Hydrazine on the free market to interested speculators presents an additional option for STARS holders to earn.
- Allows a user interested in participating in a specific IDO to do so without needing to lock up their investment capital in the form of STARS.
- Insures user IDO participation, at no cost to the individual.
Our novel model for IDO allocation gives our community the freedom to choose their level of participation with the amount of Hydrazine equity they have accumulated. The whole team at StarLaunch is very excited about this never seen before mechanism. We are proud to be pioneering new strategies in the Solana ecosystem!
StarLaunch is a unique and dynamic incubator and launchpad, connecting promising Solana projects to early supporters and a network of key partners. The StarLaunch team operates by prioritizing its community first. Starlaunch brings thoroughly vetted projects to its community and protects IDO participants with an in-house insurance program.