GMD launchpad: Onboarding new projects to GMD ecosystem and arbitrum
Introducing GMD Launchpad, a launchpad protocol built on top of GMD Protocol to help onboard projects with great potential ceiling into GMD Ecosystem and into Arbitrum Chain.
1. Context
a. Flawed Sales Model
Over the past few months, Arbitrum projects have achieved great success, with some projects raising millions and good token price movements. However, early investors have suffered losses due to the flawed fair launch model, where non-presale participants always buy at cheaper prices. For instance, $TROVE presalers have experienced a -45% loss, as many exited at a loss due to no post-launch buy pressure. The “fair launch” model is effective for developers and teams as they can extract the maximum amount of money from the market. However, since most of the demand has already been met, the token lacks buy pressure after liquidity is added. Additionally, the low allocation for liquidity also contributes to the short-term loss. Therefore, the market needs a better alternative where early investors are rewarded for taking additional risks.
b. Investors <> Projects Connection
The biggest challenge for new projects is to connect with potential investors to raise funds. On the other hand, many investors are looking for high-quality projects to invest in but lack the due diligence/connections to discover them early. GMD Launchpad aims to bridge this gap by finding, analyzing, and introducing good new projects to investors.
In this case, GMD and esGMD stakers will have priority to participate. We will also prioritize projects built on top of GMD or projects that give extra benefits to our token holders.
2. Projects on GMD launchpad: Listing process and priority criteria
a. GMD launchpad will prioritize projects based on the following criteria:
- Built on top of GMD
- Benefits for GMD ecosystem participants
- Great tokenomics , code base, and innovative product
- Strong, solid team
b. Due Diligence:
The GMD team will personally conduct due diligence on all projects that apply to be on GMD Launchpad.
Our founder, Saul Goodman, will advise them on tokenomics and the launching/managing process and ensure they have a solid plan before deployment. At the end of the process, Saul will write a review thread about the project for his degen audience.
Additionally, projects on GMD Launchpad can join a joint marketing plan, where we introduce them to GMD ecosystem participants. We will also connect them to our partners to explore possible further synergies. For example, they can partner with Trader Joe to launch a Liquidity Book market and possible LB management strategies. Or they can work with Buffer Finance to build on top of BLP. In short, if we like the project, we will support it in every way possible.
In return, the GMD team hopes to receive some form of benefits for our ecosystem, such as a fixed listing fee, seed investment allocation for the GMD treasury, token airdrop for holders, etc. These will be contingent upon discussions between GMD and the project.
3. Launchpad model
The Launchpad will have a soft cap and a max cap. After the soft cap has been reached, the token price will go up linearly based on the soft cap oversubscription amount, but it will stop when the hard cap is reached. At the end, all pre-salers will receive tokens at the same final price. This model allows for price discovery when demand exceeds the project’s need or expectation but also has a hard cap to ensure upside potential for early investors to compensate for them taking more risks (since they invest before launch).
For example, if Project A has a soft cap of 100k and a hard cap of 120k with an initial price of $1, the final price would be $1.2 if the hard cap is filled.
This will be our main model. However, we will also add dutch auctions(Bond protocol), price curve (Mugen), and overflow (Pancakeswap IFO) to meet different needs of different protocols. When you apply to launch on GMD, we will help you decide on which model is best for your protocol/ tokenomics.
4. How to participate?
There will be 2 periods during every sale that occupies the first 48 hours of a project launch:
a. Priority sale (first 24h)
Staked GMD, esGMD, xGND, and RPs(earned by staking GMD, esGMD, and xGND) will have an allocation given to them proportionally to their staked amount. For example, at 100$ per GMD allocation rate, a person who stake 100 GMD will have max 10k allocation while a person who stake 500 GMD and 400 esGMD and 100 RP (total = 1000) will have max 100k allocation.
b. Public sale (next 24h)
If the hard cap is not filled after priority sale, then the presale will be opened for the public the next day. Here, anyone can participate any amount. Likewise, if priority sale filled hard cap
That being said, to have an edge on the sale, you would have to stake GMD or esGMD.
During the launchpad event, we will temporarily disable withdrawals for the GMD/esGMD stake pool to prevent people from unstaking immediately after contributing to the sale. This is to ensure fairness for long-term GMD/esGMD stakers. Individuals can still purchase and stake GMD to participate in the sale, but they will not receive as many reward points as long-term stakers, and they will be exposed to short-term price volatility risk as they must lock their stake in the pool for a few days.
