Lock $HYPE and create your own tier
Allocations, Rounds and Token Lock explained
The main goal of this system is to spread IDO allocations fairly between both $HYPE holders and WL winners.
It’s a temporary substitute for the Stardust system but also serves as an MVP game theory wise. More importantly, it is built to be: Accessible, Anti-whale, Easy to Use and Fun.
Allocations explained
To access IDO’s on Hypercent users must lock $HYPE tokens or win whitelist spots from project owners. The allocation size is relative to the number of tokens locked. To be able to differentiate between allocation sizes we are splitting the maximum allocation into smaller allocations awarded based on locked $HYPE amount.
Accessible.
To allow smaller players to join IDO’s we are also letting them buy chances of getting allocations through lottery tickets. So, they can’t afford enough $HYPE for a full allocation but they can afford less for the chance of getting one or multiple allocations.
Fun.
To make things more fun we’re letting people try their luck to get multiple allocations (or none) for the price of one guaranteed allocation. We’ve seen how well our lottery works during our IDO where even people with just 1 ticket won the right to participate. Basically, people can opt any combination of guaranteed allocations and lottery ticket to a maximum of 5 allocations and 7 tickets.
Anti-whale
Unfortunately, on most launchpads everything is controlled by 30–40 big players who make things very expensive for the rest. A good launchpad community has a strong and numerous middleclass and this is exactly how we want to do things.
Therefore, we have made each extra allocation and lottery ticket more expensive to avoid granting big players too much pie while keeping the maximum lockable $HYPE relatively low. Users can lock 9970 $HYPE for a total of 7 lottery tickets and 5 allocations.
Lottery tickets: 200/230/265/305/350/405/465
Allocations: 1000/1220/1490/1820/2220
Easy to use
We’ve built the $HYPE locking experience to be as close as possible to the cart/checkout flow you see on ecommerce marketplaces giving the user a familiar UX to feel comfortable.
The process looks like this:
- Registration opens
- Users join whitelist locking $HYPE for allocations and tickets.
- Registration closed
- We measure the number of allocations and tickets from the whitelist and calculate allocation size
For example, let’s take this project:
Total Raise: 850,000 USD
Total allocations after whitelist closed: 2000 (including wl spots offered by project owner)
Allocation size before lottery adjustment: 850,000/2000= 425$
This means that if there were no lottery each allocation would be worth 425$, However there is a lottery and considering 1 allocation costs exactly as much as 4 lottery tickets we can leave 25% of total amount for the lottery thus increasing the total number of allocations and decreasing the single allocation size.
One thing we need to mention is that WL winners from projects will have one allocation (won in contests) but can also opt to lock $HYPE for extra allocations.
The locked $Hype begins to unlock the second day after the sale ends. It unlocks 10% per day for a total of 10 days.
Rounds explained
The main goal when designing the rounds is to avoid a situation where there are unsold tokens left and people that want to buy them are unable to. Secondary, considering there is a lottery system the rounds should make sure that as many people as possible have a chance to participate.
1st Round Guaranteed Allocations: People who got allocations have access in the round. The round is designed like the 1st round in our IDO, it’s impossible for people to be left out as the round only closes if 100% of the people fully commit to their max allocations.
You will enter the first-round if:
- You won an allocation from the project owner
- You locked $HYPE to get allocations
- You locked $HYPE for lottery tickets and have atleast one winning ticket.
2d Round (Lucky Losers Round): whatever is left from first round is divided equally between losing tickets. So, if after the first round there are 100,000 USD left unsold and there are 1000 tickets who didn’t win the lottery, they will have equal allocations up to $100. This will make sure that people are not left with 0 tokens and will also encourage lottery participation for smaller holders and thus help our fairness system.
So, a user who had a ticket and didn’t win in the first round will have an allocation worth $100 while somebody with 4 losing tickets will have a $400 allocation. On the other hand, since the first round is designed to sell out, there’s no guarantee of how much is left for the second round so users need to balance things accordingly when choosing GA or Tickets.
3rd Round FCFS: Whatever is left after the 2nd round is accessible to anyone who registered to the sale and passed KYC.
We are Hypercent. This is our vision. This is the way.
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