Hypercent Fairlaunch
A detailed description of the why’s and how’s of our IDO
Fairness is subjective so this is a good opportunity to tell you what we think is fair and how this is reflected in our IDO process.
One sale with the same price and max cap for everyone.
Usually, projects raise money in private sales for lower prices than in the IDO and then spend most of it on marketing. In the end people who buy in the IDO have less opportunity because of this process.
Our strategy was to offer everyone the same price and max cap, and make this project such a great opportunity that people promote it just to have access to the sale, this is how the GA (guaranteed allocation) was born. This was the right call as word about our project has reached far beyond the Kadena ecosystem while our marketing cost is still 0.
Offering group owners and influencers access to our sale for themselves and some community members was a win-win situation. For them it would be a way to give value to their community, for ourselves it would be a good way to have HYPE holders in as many communities as possible. This would ensure that even after the sale ends people will keep spreading the word about our project. Usually, the IDO’s are the peak of communication for most projects and we wanted to avoid such a case.
Furthermore, we offered GA spots to our earliest or most active community members, creative members who created stickers or won meme contests. We never announced anything beforehand because it would create a situation would people would join early with multiple accounts or spam with bots to win GA. We just looked back and saw in Combot who was first, who was most active as we awarded initiative.
The most important rule for us was: nobody can own more than one GA
A lottery model that awards people who supported us from the early days.
Due to the way most sales are made people are used to rushing in as soon as possible to make sure they get to buy some tokens. We aren’t big fans of this approach and we think that as a launchpad that claims to build a lottery system, it’s only fair we use one for our own IDO as well.
Obviously due to selling HYPE in this sale, we couldn’t use it as a base for the lottery. To be fair we built a system where people who have been observing and supporting us from the early stages have more chances of participating in the sale.
Not only did they believe in us when we had less to show but they did so when there were less people in the community to get social proof from. Besides that, our growth was organic but accelerated exponentially, so the early people helped us a lot by helping new members understand better who we are and what we build. Some of these members are now our admins and they are paid for their work.
Participation in our sale is given by either GA (guaranteed allocation) or Lottery Tickets to win an allocation in one of the rounds. We have offered lottery tickets based on how early people have joined our telegram group so users could get either 8, 5, 3, 2 or 1 ticket.
More tickets mean a higher chance of participating in the sale, nobody can have more than 1 allocation in any sale. Basically, the lottery draws a list of people from 1 to 3800 (total KYC members) and lowers means better because you have a higher chance of joining a round.
Lottery and multiple sale rounds go hand in hand.
Before explaining how the rounds are different, we need to mention that the price and max allocation is equal in all rounds.
1.The FIRST ROUND is designed to offer GA to all round participants, so if you made it to round 1 there’s a 100% chance you can buy HYPE. To make sure this happens we have divided the total sale amount of 2m to the max allocation of 1500$ (worth of KDA) and the result is 1333 people.
Basically, the people from the first round have no way of closing the sale as the round wasn’t designed to be closed, but to protect the GA.
In reality not everyone will go for maximum allocation in the first round. Whatever is left from the first round will be available in the second round.
For example, if the average buy in the first round is $900, there are $800,300 worth of tokens left for the second round. This system will only work for the first round though, as if all rounds had this system, it would probably take more than 5 rounds to finish the sale.
2. The SECOND ROUND is designed to offer Projected GA
To avoid going for so many rounds we will use the data from the first round to select the correct number of people for the second round. Basically, when we calculate the participants in the second round, we look at the average buy and split what’s left in the second round.
Example: In the above example we have $800,300 left for the second round, if we were to calculate like the first round, we would divide that to 1500$ and we would get 533 people who have 100% GA. Instead, we divide that to the average buy in the first round as the second round is built to close. In this case 889 people join the second round because that's the theoretical number of people needed to close the round if the average buy equals the one in the first round.
This means that the second round is a combination between the lottery GA and a FCFS system. It is designed that everyone who participates in the round to have a 90% chance of allocation. So yes, some people might end up not getting allocation even if they join the round, but the chances are slim.
There’s still a chance that the sale isn’t closed in the second round, in this case the second-round process would repeat for the 3rd round.
To read before the IDO:
- Price: 1 $KDA =12.5 $HYPE (price of Kadena was set for $6.25)
- Min/Max allocation: 40/240 $KDA
- Before transferring $KDA to your Hypercent wallet make sure you have the mnemonic to access the wallet. The password is stored locally and we don’t store the mnemonic so you can be left out of our wallet.
- If you make it into a round you only have one chance to swap, once you swap you won't be able to participate in any other rounds. Even if you don’t swap and the round passes you still won't be able to participate in any other round.
- If you haven’t made it into round 1, wait for the round 2 lottery. Avoid engaging with people who want to sell you a GA in our IDO as this is impossible without being scammed. Even if someone gives you access to their wallet you cannot change the mnemonic so they would also have access to that wallet. If you see people promoting this, please send us proof on telegram so we can remove them from the sale and give way to fair people.
- The IDO takes place on CHAIN 1, please see this tutorial to understand how to move KDA between chains with the cross-chain function: Hypercent — Crosschain Tutorial — YouTube
- All the other details regarding tokenomics, price, team or token usecase can be found on our platform.
- Once the rounds start you will see a swap screen like the one in the article cover.
Schedule:
Round 1 :21.03.2022 (16:00 CET) -22.03.2022 (16:00 CET)
Round 2 Lottery winners: 23.03.2022 10:00 CET
Round 2: 24.03.2022 (16:00 CET) - 25.03.2022 (16:00 CET)
Round 3: TBA if necessary
TGE: 28.03.2022 you will see $HYPE in your wallet, untransferable until KADDEX Launch (Q1 2022 as per their roadmap)
Some stats about our IDO le so far:
