Introducing Minimum Guaranteed Allocations for FAS Projects

Published in

FerrumNetwork

6 min readFeb 8, 2021

Dear Ferrum Community,

We are fortunate to have developed a tremendous pipeline of incredible projects that have signed up for Ferrum Advisory Services (FAS), starting with UREEQA and continuing with another great project that we will be announcing in a matter of hours.

In addition, we are delighted to announce that we have a total of five confirmed highly attractive pre-sale opportunities that FRM / FRMx holders will get exclusive access to via Ferrum Advisory Services!

Before revealing the next pre-sale project, we want to announce some adjustments to the allocation model that the Ferrum Governance Committee has developed in order to benefit smaller holders and the Ferrum ecosystem as a whole.

Establishing a Guaranteed Minimum Allocation

As most of you know, one of the big advantages of pre-sales via our newly launched Ferrum Advisory Services (FAS) is the fact that everyone meeting the minimum holder requirements (50,000 FRM in most cases) is GUARANTEED an allocation. No lottery, no whitelist-process and no first-come-first-served… Everyone who pledges interest within a 36 hour time-window will get an allocation.

The higher your tier (see section below) the more “base allocations” you will receive. Of course, the amount of one “base allocation” always depends on how much the project does raise, how big the overall Ferrum allocation is and how many Ferrum holders pledge their interest. Let’s explore further.

$500 Minimum Base Allocation

To make sure smaller holders are also guaranteed a decent allocation amount, we are pleased to announce that going forward there will be a minimum base allocation amount of $500. This means people holding 100k FRM on UniFyre Wallet are guaranteed at least an allocation amount of $500 (people holding 50k are guaranteed at least $250).

Due to the fact that most of the future pre-sale opportunities will exclusively available via Ferrum Advisory Services — hence the available allocation is often quite substantial (despite the fact that we will be offering mostly access to projects with low initial marketcap). Therefore, in most cases, the amount will be higher than $500 per allocation. However, having this minimum guaranteed allocation in place provides security for our “smaller holders”.

In those (few) cases where there is a base allocation of $500, the remaining overall allocation will then be distributed among people qualifying for more than 1.0 allocations using our tier system (see below).

Example of the $500 Minimum Guaranteed Allocation

For those interested in the calculation behind this, here is a theoretic example how this system would work:

Let’s assume there are three holders who own 100k FRM (1 allocation), 250k FRM (2 allocations) and 500k FRM (3 allocations)
If now the overall allocation for these three FRM holders was $2,400, then by dividing this figure with the total number of allocations (=6), the resulting allocation amount would be $400 ($2,400/6). This means without the new “guaranteed minimum allocation” the 100k FRM holder would get $400
With the new “guaranteed minimum allocation” in the given example first of all the three FRM holders would each receive $500 each. The remaining allocation of $900 (=$2,400 — (3*$500)) would then be distributed among the holders with more than 100k FRM. The resulting total allocations would be:
100k FRM holder: $500 allocation
250k FRM holder: $800 allocation (=$500+$300)
500k FRM holder: $1,100 allocation (=$500+$600)

To our knowledge FAS is the only incubator that is offering guaranteed $500 minimum allocations in private sales. We think this is something worth highlighting.

The Steps Between the Tiers

As previously announced and restated on the website, we now have smaller steps between the existing tiers to qualify for pre-sale allocations. This was done to ensure that Ferrum holders have a realistic chance to “reach the next level” required to increase their individual allocations.

In most cases, the following FRM thresholds are used for awarding pre-sale allocations (new steps are written in italic):

25,000 FRM (Lottery Tier): 0.25 allocations
50,000 (Bronze): 0.5 allocations
75,000: 0.75 allocations
100,000 (Silver): 1.0 allocations
130,000: 1.2 allocations
160,000: 1.4 allocations
190,000: 1.6 allocations
220,000: 1.8 allocations
250,000 (Gold): 2.0 allocations
300,000: 2.2 allocations
350,000: 2.4 allocations
400,000: 2.6 allocations
450,000: 2.8 allocations
500,000 (Platinum): 3.0 allocations
550,000: 3.2 allocations
600,000: 3.4 allocations
650,000: 3.6 allocations
700,000: 3.8 allocations
750,000 (Diamond): 4.0 allocations

Also for FRMx going forward we will use additional bonus levels that apply to all those holding 50,000+ FRM.

The new steps will be in increments of 2 FRMx, starting from 2 FRMx through 30 FRMx. Each step will provide a bonus of 0.2 allocations, meaning every 2 FRMx you hold, you will receive a bonus of 0.2 allocations:

2 FRMx: Bonus of 0.2 allocations
4 FRMx: Bonus of 0.4 allocations
6 FRMx: Bonus of 0.6 allocations
8 FRMx: Bonus of 0.8 allocations
10 FRMx: Bonus of 1.0 allocations
(steps will continue at this pace of 2 FRMx = 0.2 allocations)
28 FRMx: Bonus of 2.8 allocations
30 FRMx: Bonus of 3.0 allocations

If we compare this to the old system, it is now far easier to obtain FRMx bonuses. This will increase utility for the FRMx token while not prejudicing those who were involved in the old system.

For easier accessibility we have added the tier requirements on the Ferrum website — you can find them here.

Strict Penalties for Splitting of Wallets

For Ferrum’s inclusive pre-sale allocation-system to work, everyone must play by the rules. If we do what is right for the wider community, then we as individuals will also benefit, without needing to cut corners.

Therefore, for all pre-sales the splitting of wallets is strictly forbidden. We have designed the model in a way that smaller holders get sizeable allocations, and we expect every community member to play by the rules and to not exploit the system.

For this reason, we have implemented a wallet tracking system whereby everyone who is found out to use more than one wallet will not be granted access to pre-sales.

Reserving the Right for Future Adjustments

While we will always strive to adhere to the foregoing structure, there may be some instances where the total allocation given to Ferrum is quite small, or the project themselves may have unique requirements we need to follow.

Therefore, it’s important to state that we reserve the right to make any adjustments or changes to the structure, for instance adding a requirement that an investor hold 1 FRMx (e.g. UREEQA) in order to participate. Of course, any adjustments will be on a case by case basis, with plenty of advanced notice, and be done with the best interests of the community in mind.

What’s Next

There are MANY things in preparation at the moment… Keep a close eye on the Ferrum announcement channel in the next days and weeks.

Very truly yours,

The Ferrum Network Team

About Ferrum Network

Ferrum Network is building a DeFi ecosystem that interoperates across chains and removes barriers to mass adoption. Founded in the 2018 bear market, it has grown into a DeFi powerhouse with four working products, over 20,000 active users, 50+ clients using its staking technology, 20+ million TVL on its staking protocol, a successful incubator/advisory arm, 8 FRM utilities, and much more. Ferrum’s forthcoming cross-chain DAG will enable the transfer of any digital asset in milliseconds for near-zero network fees. Its non-custodial UniFyre Wallet has revolutionized the way people send crypto with its “Link Drop” technology. Ferrum’s Staking-as-a-Service is used by over 50 projects and their Token Bridge is the fastest, and most secure means of moving assets between Ethereum and Binance Chain. Look for Ferrum to launch more transformative DeFi technology throughout 2021 and beyond.