Presale Strategy and Vesting
Objective:
Objective is to raise working capitol to add to and continue development of the World of Aetherion. starting with a presale by selling 10% of the total supply (4,200,000 GEN tokens) at $0.20 each token. During the presale event a hard cap of 100% of the tokens sold will be the objective and a soft cap of 50%. If only soft cap is reached this will only change the initial matched locked tokens and launch liquidity pairs. Analysis: This sets a foundational valuation and capital base. The price point aims to attract early investors, with the potential for appreciation at the launch price of $0.25.
Presale Token Release Vesting Strategy:
At launch Immediate presale token holders must claim 20% of their presale tokens. If not within a certain time frame will be staked/locked on their behalf. The other 80% will be vested for a 12 and 24 month period and added as initial liquidity. The 80% vested tokens will be offered as differentiated APRs (20% APR initially for the first year, increasing up to 40% APR after the first year of release, if opted) these staked presale tokens will lock in their tokens, reducing market pressure. In addition, the first release of 50% of the remaining vested presale tokens will be released after 12 months. If opted not to claim first release, they will be folded into the last release @40% APR. A total of 4,200,000 tokens will at the end of the 24 month period be in total circulation as well as the additional initial token release of the 12,600,000 community/staking and rewards allotment. (see Pie Chart)
Launch Price:
Setting the launch price at $0.25, higher than the presale price, aims to offer immediate gains to presale participants if they choose. The success of maintaining this price level depends on market demand and sentiment post-launch. The added lock on 80% vested/staked tokens will prevent a sell off and allow early purchasers to have a fair launch purchase price and healthy increase in token value.
Liquidity Provision on Uni-swap:
Allocating 20% of presale tokens for liquidity ensures market depth, facilitating price discovery and trading activity. A 20% initial offering of the Community, Staking, and Rewards Allotment of (12,600,000 tokens): This will support community engagement, while the remaining portion is reserved for ongoing rewards and staking incentives and incremental token release. The decision to stagger the release of the community tokens will help manage supply and support token value over time. Staggered release rate will be at 20% of the remaining 80% every 90 days and the final remaining 20% will be allotted for staking, rewards and reserve for any unexpected changes, burns or expenses.
Post-Launch Staking:
Also, a regular staking mechanism will be offered at some point, at a variable APR rate between 10-30% depending on market fluctuation.
Implementing a variable APR of between 10-30% that adjusts based on the token's value aims to sustain participation while managing inflationary pressures from staking rewards. Staking is available for all holders after launch.
Deflationary Aspect and Holder Rewards 5% Sell Fee:
This serves dual purposes. Burning 50% of the 5% sell fee counteracts inflation by reducing total supply, potentially increasing scarcity and value over time. Distributing the remaining 50% back to token holders incentivizes holding, creating a passive income stream and fostering a loyal community. Reflection Period: Reflecting rewards back to holders every 7 days. and holding reflection is adjusted variably. This ensures regular incentives for holders, contributing to a sense of ongoing engagement and reward for participation in the ecosystem. Approximately 80% of the total supply should be in circulation by the end of the 2nd year, and the game should be well under way by the end-term of the 2nd year.
Considerations and Implications Market Dynamics:
Balancing the immediate release of tokens with long-term value retention strategies is crucial. The initial price appreciation strategy must be managed carefully to avoid volatility and ensure sustainable growth.
Staking Incentives vs. Inflation:
High APRs can be attractive but need to be sustainable. The project must ensure that staking rewards do not lead to excessive inflation, diluting value. Deflationary Mechanism: Regularly burning a portion of tokens can help maintain or increase value, but the effectiveness of this strategy depends on transaction volume and market participation.
Community and Holder Engagement:
Regular reward distributions and a structured approach to staking and community rewards can build a strong holder base. Transparency and communication about these mechanisms are key to maintaining trust and engagement.
Locked Liquidity: Also a locked liquidity of 4,200,000 of supply for 1 year, insures a stable growth and surety of a balanced token economy. After the 2 year ends, the tokens will be released into the community over a period of time to insure stabile coin value.
Team and Marketing Vesting:
Gradual Release Schedule: a gradual vesting schedule over an extended period, for a total of 2 years, with regular release intervals (e.g., monthly or quarterly). This gradual release schedule prevents token dumping and ensures that team members remain incentivized to contribute to the project's long-term success. Each release portion will be locked in individual locked and timed wallets.
Cliff Period for Team: Includes a cliff period at the beginning of the vesting schedule, during which no tokens are released for the first 90 days and future release depends on the project's timeline and milestones. The cliff period ensures that team members are committed to the project for a significant duration before receiving any tokens. Projected team release is 5-10% of the 10% team supply every 6-12 months.
Marketing tokens, will release 10% of the 15% total supply, gradually over the first 30 days, to ensure increased investors and engagement to the project. Marketing will then release a similar amount as the team allotment, 5-10% of the 15% every 60-90 days. This ensures regular marketing for the game and Genesis token.
Lock-up Period: A lock-up period during which released tokens cannot be sold or transferred. This lock-up period helps prevent immediate selling pressure on the token's price and provides investors with confidence that team members are committed to the project's long-term success.
Token Escrow or Smart Contracts: Token escrow or smart contracts to automate the vesting and release process, ensuring transparency and security. Smart contracts can enforce the vesting schedule and lock-up periods, releasing tokens automatically according to predefined conditions.
Communication and Transparency: All token transactions will be made available and open and public via the website. Communication with the community regarding the team, marketing and other vesting and schedules will be made public. Providing regular updates on the project's progress, achievements, and milestones will build trust and confidence among the projects investors and stakeholders.
Token Allocation Limits: A 10% allocation for team vesting is relatively standard in the industry.
Last updated
Was this helpful?