Poolz New and Improved IDO Tier Structure — 23-March-2021

Taha Abbasi
Poolz
Published in
11 min readMar 23, 2021

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Poolz New and Improved IDO Tier Structure — 23-March-2021

Overview for Fast Readers

The changes will not impact the IDOs that we have already announced through 31-March-2021. These changes will affect all IDOs after the Rage Fan IDO that takes place on 31-March-2021.

  1. There are two tiers: Top 100 (Guaranteed Tier) and a Poolz Community Tier.
  2. There will be a specified IDO base allocation set for the Top 100 Tier and the lottery winners of the Poolz Community Tier.
  3. The base allocation for each tier will be split evenly amongst the IDO whitelisted winners.
  4. There will be a specified IDO bonus allocation set for the Top 100 Tier and the Poolz Community Tier.
  5. Every POOLZ token held in the Poolz Community Tier increases the likelihood of winning a base allocation in this tier.
  6. The bonus allocation will be awarded to IDO whitelisted winners in each tier, proportional to the number of POOLZ tokens they hold. Every additional POOLZ token owned will increase the bonus allocation awarded.
  7. Phase 1 will involve staking as a requirement to participate in the IDOs. Phase 2 will remove the staking as a requirement to participate in IDOs and require only the whitelist mechanism to participate in IDOs.

Intro

Today we’re ecstatic to share the upcoming changes to the Poolz IDO tier structure.

We want to start by sharing some vital information regarding the problems we hope to solve with the new structure.

Poolz current IDO Tier Structure — Poolz New and Improved IDO Model
Photo by Chris Haws on Unsplash

The Problems Plaguing Launchpads

The IDO launchpad space has created a tremendous opportunity for all kinds of investors to enjoy remarkable returns. However, the space is plagued with problems. We launched Poolz to solve the following major problems:

  1. GAS fees on most launchpads can exceed $200 on a regular basis and in some cases GAS fees may exceed over $3,000.
  2. The static tier and lottery ticket system adopted by most launchpads consistently puts small token holders at a significant disadvantage in the whitelisting process to win an allocation. Even the largest token holders on platforms like Polkastarter only stand a 0.02% chance of winning an investment allocation. For holders who have less than the highest tier requirement of token holdings, their odds of winning are closer to getting struck by lightning than winning an allocation.

Our Goal and Commitment

We started Poolz with a goal to give every member of the Poolz community a fair and equitable opportunity to participate in the IDOs launched on the Poolz platform. – Guy Oren, Co-Founder and CEO — Poolz Finance

The commitment to this goal is what drives our team to wake up every day and commit countless hours to deliver exceptional value to our Poolz community. We are committed to continuously evolving and improving in our pursuit of achieving the ideal solutions for our community.

We are confident that our new and improved tier structure brings us one step closer to accomplishing this goal.

Our Current Tier Model and Its Limitations

When we conducted our first IDO for Bot Ocean, it was through a first-come, first-serve model (FCFS). In this model, GAS fees ranged from a few hundred dollars to over a thousand for some participants. We analyzed the Bot Ocean IDO data, gathered community feedback, and took immediate action to adjust the IDO model.

On 14-February-2021, we announced our current guaranteed tier and lottery-based whitelist IDO model. Since then, we have received overwhelmingly positive feedback about implementing a whitelisting process and tiered system instead of first-come, first-serve (FCFS) IDO pools. Through the new model, the average GAS fees for IDO participants dropped by over 75%. We were able to eliminate the problem of IDO congestion-based GAS fee inflation.

The results show that the adjustments made were a big win for our entire community.

Now we would like to build on that success. Driven by our commitment to continuously improve the value we provide to our community, we once again analyzed the data from the last few IDOs and gathered community feedback. With the Poolz Governance Counsel’s help, we have identified four core problems and are now ready to announce exciting changes to the Poolz IDO model.

Poolz current IDO Tier Structure — Poolz New and Improved IDO Model
Photo by Daria Nepriakhina on Unsplash

The Problems Identified With The Current Model

  1. An insufficient incentive to participate for people who hold less than 250 POOLZ.
  2. No incentive to buy POOLZ after the staking period for IDOs is closed.
  3. Disproportionate allocation for mid to higher tier wallet holders.
  4. The requirement to stake tokens for IDO participation is not a feasible option for holders who own 50 Poolz or less due to high GAS costs.
Photo by Martin Shreder on Unsplash

The New and Improved Poolz IDO Model

We have built the new Poolz IDO model as an evolution of our current model. We are building on the benefits the current model provides while working to eliminate the limitations it introduced.

The new model accomplishes the following major goals.

  1. Every Community Member Matters: Allows holders who hold as little as 1 POOLZ token a fair and equitable chance to win a base allocation in upcoming IDOs.
  2. Increase Your Chances of Winning With Every POOLZ token: Every POOLZ token you own adds a “Weight” to your entry in the Poolz Community Tier, increasing your likelihood of winning an allocation.
  3. Earn A Bonus For Every POOLZ token: Rewards holders who own more POOLZ with a bonus allocation amount for every 1 POOLZ token they own.
  4. Peace of Mind With A Guaranteed Allocation: Guaranteed allocations for the Top 100 Poolz holders.
  5. Save On GAS Fees: Eliminates unnecessary fees by transitioning to a whitelist and wallet snapshot-based IDO qualification model instead of long staking periods.

We’d like to take a moment to elaborate on each of the amazing benefits of the new model and its impact. If you are only interested in reading about the mechanics of how the new model works, you can skip this part and continue to the “Mechanics Of The New and Improved Poolz IDO Model” section of this article.

Got 1 Poolz (~ $20), you can win an allocation to invest in a Poolz IDO.
Photo by Jo Jo on Unsplash

Got 1 Poolz (~ $20), you can win an allocation to invest in a Poolz IDO.

Every Community Member Matters — We truly believe in fair and equitable access to investment opportunities for every member of our community. The ability to allow all Poolz holders who hold as little as 1 POOLZ token access to our upcoming IDOs excites us the most.

We understand that the high gas costs involved with the requirement to stake Poolz tokens for IDO qualification won’t make sense to token holders who hold 1 Poolz token. We are working hard to transition our system to allow wallet-snapshots of whitelisted IDO token holders with no staking requirements to resolve this issue. Over the next few weeks, we will share more information about the transition and announce the dates relating to the transition from staking-based IDO participation to wallet-snapshot and whitelist-based IDO participation.

Photo by Austin Distel on Unsplash

Already At Your Desired Tier? Why Should I Buy More Poolz?

Increase Your Chances of Winning With Every POOLZ token — Every POOLZ token you own adds a “Weight” to your entry in the Poolz Community Tier, increasing your likelihood of winning an allocation. This new lottery mechanism is a tremendous benefit to all participants of the Poolz Community Tier. Now you get rewarded for every additional token POOLZ token you hold compared to tier-based increases that de-incentivize acquiring more tokens unless you can jump to the next tier.

Earn A Bonus For Every POOLZ token — We received significant feedback from the community about the lack of incentive and reward for buying more Poolz between tiers. This is a problem that impacts almost all launchpads in the space. For example, if you own 250 POOLZ, it didn’t make sense to acquire more POOLZ unless you could make it to the next tier at 500 POOLZ. This problem is amplified for token holders who hold between 5,000 POOLZ tokens and 10,000 POOLZ tokens. With our new model, we have solved this problem. The new model rewards a bonus allocation for every POOLZ token in the wallet at the time of the snapshot. To explain the benefit of the new bonus model, let’s review two examples of token holders. Let’s assume two token holders who won an allocation to an upcoming IDO.

  1. Holder A owns 1 POOLZ token
  2. Holder B owns 49 POOLZ tokens

Both token holders (Holder A & Holder B) will get the same base allocation for their tier (the Poolz Community Tier). However, Holder B, who owns 49 POOLZ tokens, will receive a bonus allocation for the 49 tokens they hold. So the bonus allocation for Holder B will be 49 times higher than the bonus allocation for Holder A, who owns 1 POOLZ token.

This same bonus logic applies to the largest holders. This bonus reward mechanism creates an incentive for and rewards all community members for acquiring and holding more POOLZ tokens to increase their bonus allocation size for IDOs.

Guaranteed allocations for the Top 100 Poolz holders

Peace of Mind With A Guaranteed Allocation — A static system is inherently short-lived. With proper incentives, holders are encouraged to buy more tokens to qualify for larger tiers. However, once the larger tier starts filling up, the allocation size for large holders reduces due to the number of people in the tier over time.

To solve this problem, replacing our tier system with a simple 2 tier system.

  1. The Top 100 Tier (Guaranteed Tier)
  2. The Poolz Community Tier

Each tier will have a specified Base Allocation Size and a specified Bonus Allocation Size per IDO. The Base Allocation will be split evenly amongst the participants in the specific tier. The Bonus Allocation will be awarded proportionally to the number of Poolz tokens the participants hold in a given tier. The Bonus rewarded increases for every additional POOLZ token held.

The TOP 100 Tier
The Top 100 Tier will be comprised of the Top 100 largest POOLZ holders who have whitelisted for a given IDO. As of today, this includes all holders who have more than 5,000 POOLZ tokens in their wallets. Participants in this tier will get a Guaranteed Base Allocation. This tier’s total Base Allocation will be split evenly amongst all of the whitelisted participants in the Top 100 Tier. Additionally, participants will be rewarded with a Bonus Allocation for every POOLZ token they hold.

This new dynamic tier system solves a few critical problems and ensures longevity.

  1. Solves the problem of reduced allocation sizes as more people acquire higher amounts of POOLZ tokens.
  2. Incentivizes and creates a virtually eternal reward for Poolz holders to acquire and hold more POOLZ tokens.
  3. The new Bonus program will provide a fair and equitable Bonus reward to participants who own as little as 1 POOLZ token and even participants who hold over 10,000 POOLZ tokens. Every POOLZ token counts towards an additional Bonus Allocation Reward.

The Poolz Community Tier
The Poolz Community Tier will include all participants who hold more than 1 POOLZ token but less than the last participant in the Top 100 Poolz tier.

The same principles regarding Base Allocation and Bonus Allocation apply to the Poolz Community Tier. This tier gives a fair and equitable chance to win an IDO allocation to participants who own as little as 1 POOLZ token.

Photo by Jp Valery on Unsplash

Staking Free IDO Participation — Coming Soon in Phase 2

Save On GAS Fees — While staking has its benefits and plays a critical role in crypto, we believe our current use case of staking needs to be adjusted. We understand that the high gas costs involved with the requirement to stake Poolz tokens for IDO qualification won’t make sense to token holders who hold 1 Poolz token. Since we want to open the amazing world of IDOs to as many people as possible, we are working hard to transition our system to allow wallet-snapshots of whitelisted IDO token holders with no staking requirements to resolve this issue.

Over the next few weeks, we will share more information about the transition and announce the dates relating to the transition from staking-based IDO participation to wallet-snapshot and whitelist-based IDO participation.

Staking For Rewards — Our various staking options for APY rewards will continue as announced. This change will only apply to the requirement of Staking tokens as it relates to IDO participation.

Mechanics Of The New and Improved Poolz IDO Model

There is beauty in simplicity. While creating the new and improved Poolz IDO model, we focused on ensuring simplified logic and mechanics. Simple to understand, simple to implement, and simple to participate in.

Photo by Kelly Sikkema on Unsplash

Here Is The Breakdown of The New and Improved Poolz IDO Model

  1. There are two tiers: Top 100 (Guaranteed Tier) and a Poolz Community Tier.
  2. There will be a specified IDO base allocation set for the Top 100 Tier and the lottery winners of the Poolz Community Tier.
  3. The base allocation for each tier will be split evenly amongst the IDO whitelisted winners.
  4. There will be a specified IDO bonus allocation set for the Top 100 Tier and the Poolz Community Tier.
  5. Every POOLZ token held in the Poolz Community Tier increases the likelihood of winning a base allocation in this tier.
  6. The bonus allocation will be awarded to IDO whitelisted winners in each tier, proportional to the number of POOLZ tokens they hold. Every additional POOLZ token owned will increase the bonus allocation awarded.
  7. Phase 1 will involve staking as a requirement to participate in the IDOs. Phase 2 will remove the staking as a requirement to participate in IDOs and require only the whitelist mechanism to participate in IDOs.
Photo by Kyrie kim on Unsplash

When Will The New Model Be Implemented

The changes will not impact the IDOs that we have already announced through 31-March-2021. These changes will affect all IDOs after the Rage Fan IDO that takes place on 31-March-2021.

We wanted to share this exciting announcement to allow our amazing Poolz community and the crypto community as a whole ample time to position their holdings so they can take advantage of the new and improved Poolz IDO tier Structure.

Upcoming IDOs — The Current Model Still Applies

FM Gallery | 22-Mar-2021
Deeper Network | TBD
MerchDAO | 27-Mar-2021
Cook Protocol | 30-Mar-2021
Rage Fan | 31-Mar-2021

IDOs That Will Utilize The New and Improved Poolz IDO Model

To be announced soon — Includes all IDOs after 31-March-2021

Got Questions? Join our AMA on Wednesday, 25-March-2021

To share more information about these exciting changes and answer our community’s questions, we will hold an AMA on Wednesday, 25-March-2021.

We will share the link to join the AMA and announce the time in the Poolz Official Telegram announcement channels. In the meantime, if you have questions about the model, feel free to share them in the Poolz Official Telegram channel. Our admins will compile the list of questions so we can address them in the AMA.

In the meantime, stay tuned and keep supporting Poolz.

Truly yours,
The Poolz Team.

Follow the latest updates on Poolz and Poolz IDOs here:

Telegram: https://t.me/PoolzOfficialCommunity

Telegram Announcements: https://t.me/Poolz_Announcements

Twitter: https://twitter.com/Poolz__

Website: https://www.poolz.finance/

Github: https://github.com/The-Poolz

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