MT Capital Insight: Fair Launch - A profound change in token issuance method.

MT Capital

23-12-27 18:30

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Original author: Xinwei, Ian

TL;DR

In the past few years, the blockchain industry has undergone tremendous changes, especially in the way tokens are issued. From the initial simple ICO to complex DeFi structures, and now to the Fair Launch and community-driven models, these changes have not only reshaped the pattern of asset allocation, but also attracted widespread attention from market participants. Next, we will delve into several representative projects, each of which showcases the innovation and progress of this field through unique token issuance methods.

This article provides an in-depth analysis of several key projects in the cryptocurrency industry, ranging from the inscription's retail-driven model to Blast's incentive for innovation, ZKFair's emphasis on fairness, Analysoor's innovative distribution method, and Binance's redefinition of token economics with Fair Mode. These projects not only showcase the diversity of the cryptocurrency ecosystem but also reflect the growing demand for transparency and fairness in the market.

MT Capital's Investment Director Ian's view: "In the experiments of projects such as #BRC20, #Blast, #ZERO, #ZKFair, we have witnessed a great innovative way - fair distribution for everyone. They do not rely on platform coins or investors. The earliest participants have completed the investment, distribution, market promotion, and preaching of the project. This is similar to liquidity mining in DeFi Summer, and the project's own liquidity incentive has created prosperity for the entire chain. Fair distribution greatly enhances the enthusiasm of community participants, reaching unprecedented heights."

Inscription

The rise of inscriptions is similar to the DeFi Summer of the past, and the core concept is fair launch. This concept was very popular during the DeFi Summer period, mainly referring to the project party not reserving any shares during the initial token distribution. For example, Andre Cronje, the founder of Yearn (YFI), claimed that he did not pre-mine, reserve tokens, or notify internal personnel in advance, which greatly enhanced his reputation and brought huge TVL to Yearn.

However, as DeFi Summer gradually came to an end, the market witnessed the emergence of more and more projects, making the entire cryptocurrency ecosystem more mature. During this period, capital began to enter the market, opening up a project launch mode driven by VCs. In this mode, projects with large financing amounts and high reputation of investment institutions are more likely to attract market attention. This has also given rise to some users who rely heavily on "airdrops" for survival and ordinary retail investors who are eager for star project airdrops.

Against this backdrop, the emergence of inscriptions has brought about new changes. It is regarded by some as "the world of retail investors" because all chips are completely minted by retail investors themselves. Although inscriptions are criticized by some as having only meme coin attributes and lacking long-term practical application scenarios, they provide more opportunities for retail investors. With more and more inscription projects being born and ending the asset issuance phase, the Bitcoin ecosystem is expected to enter a new phase of application construction.

https://geniidata.com/ordinals/index/brc20

Blast

Since its launch on November 21st, Blast has quickly become the focus of the cryptocurrency market, demonstrating its innovation and attractiveness in the Layer2 network field.

Blast is a Layer2 network launched by Pacman, the founder of Blur. Based on Optimistic Rollups technology, Blast is compatible with Ethereum and provides a convenient way for developers and dApps to access. The rapid growth of Blast's TVL and user numbers is quite remarkable, with Blast TVL currently reaching $1 billion.

In addition, Blast has completed a $20 million financing round with participation from Paradigm and Standard Crypto.

Blast's main way of attracting users and developers is through airdrops and incentive mechanisms. According to the plan, an airdrop will be conducted in May 2024 to reward early members and developers. Users can earn points by depositing assets and inviting new users to join the Blast L2 network, which will directly affect the number of airdrops they receive. This mechanism incentivizes user participation and promotion.

The core attraction of Blast lies in the combination of its staking mining and additional rewards. By depositing funds into Blast and using Lido to stake on the Ethereum mainnet, users can not only earn staking rewards, but also receive additional rewards from Blast. The fundamental purpose of this strategy is to increase TVL and attract more users to participate in order to obtain additional Blast rewards. The success of Blast depends on its innovative Layer2 solution and incentive mechanism to attract users and developers.

https://dune.com/0xramen/blast-stats

ZKFair

ZKFair (ZKF) is an innovative project based on Ethereum, focusing on establishing a fair and community-driven Layer 2 network. As the first ZK-Rollup on Ethereum to utilize Polygon CDK and Celestia DA technology, ZKFair's core goal is to lower the high entry barrier for users of current Layer 2 networks. In the current market environment, many ZK-L2 projects are dominated by VCs with high valuations, making it difficult for ordinary users to obtain substantial returns. These projects also encourage users to pay high transaction fees, but token incentives are slow to be distributed, which is not user-friendly for ordinary users.

ZKFair is attempting to change this situation by creating a fair launch, community-driven network. This network is not only technologically advanced, but also has the support of Lumoz RaaS. The project's native token $ZKF has been launched in a 100% fair manner, with no shares reserved for investors, bookers, or early miners. All tokens are planned to be airdropped to the community after the mainnet goes live, with a total supply of 10 billion, of which 7.5 billion will be used for gas fee airdrops and the remaining 2.5 billion will be used for community users.

ZKFair is notable for its unique market positioning and distribution strategy. Market analysis is generally optimistic about its opening potential, with expected appreciation of 5-10 times. The project uses stablecoin USDC as Gas, combined with low market value and innovative chip distribution model, providing investors with an attractive story and fair distribution mechanism. Regarding token acquisition, the rules stipulate that addresses that have interacted with platforms such as zkSync, Scroll, ZKSpace, Polygon EVM, and Linea during a specific period of time are eligible for airdrops. In addition, the project also specifies the detailed process and restriction rules for burning Gas to obtain ZKF tokens, as well as strategies for quickly consuming Gas through interaction with Dapps.

Analysoor

Analysoor is the first Meta Protocol on the Solana chain, introducing an innovative method for creating and distributing NFTs and tokens. Its core uses block hash values as a random number generator, selecting a winner for each block and effectively countering the influence of bots in the $ZERO and Index ONE NFT minting process.

Analysoor's fair distribution mechanism focuses on fairness and liquidity orientation, without pre-sale, whitelist, team allocation, or GAS fees paid for early trading. This means that every participant starts at the same starting line, and differences in funding size do not affect the casting competition. The casting fee does not flow to the project party or miners, but is used to increase liquidity, support ecology and community.

Analysoor is building a strong community consensus, and its value and potential are being recognized by more and more people. Developers are also working hard to adopt more innovative methods to combat potential robot behavior and ensure long-term fairness, where AI algorithms and machine learning will play an important role.

Compared to other mainstream Launchpad projects on other public chains, the current market value of Analysoor may be underestimated. Considering that there is no leading Launchpad protocol in the Solana ecosystem, Analysoor has the potential to become this role and achieve significant value growth in the future.

The market's demand for fairness and transparency is increasing, and the Fair Launch mechanism will become a trend. Especially on high-performance public chains such as Solana, 2024 may be the year of the Meta Protocol's explosion. As a pioneer of Solana's on-chain Fair Launch, Analysoor has great potential and a strong vision, and may expand into a multi-functional Launchpad in the future.

https://medium.com/@GryphsisAcademy/analysis-0-1-innovating-fair-launch-with-random-hash-4a36ad6a0437

Fair Mode

Binance's recently launched Launchpool "Fair Mode" represents an important innovation in the token economy system. The core of this model is not only the project itself, but also the rethinking of the token economy system, aiming to promote the long-term benign development of the project. Fair Mode introduces a 27% long-term development fund, which cannot be consumed or sold, will not enter the market circulation, but will be used for staking and participating in the ecosystem to support the project's continuous growth. In addition, the model has fairly distributed up to 21% of the tokens to retail investors in its initial circulation of 25%, including Binance Launchpool and airdrops. This not only increases the community's influence in project decision-making, but also stimulates their willingness to cooperate with the project team.

By increasing the initial circulation and reducing the future unlocking amount, Fair Mode reduces selling pressure in the market and lays the foundation for the long-term stability of token value. At the same time, by reducing the proportion of tokens held by the team and investors, this model reduces their ability to manipulate the market and helps maintain the healthy value of the token. Binance has demonstrated its deep understanding of the industry by introducing Fair Mode, which may lead the innovation of token economic systems. This model emphasizes the rationality and fairness of token distribution and is expected to become an important factor in driving the development of the entire blockchain technology and token economy.

https://twitter.com/heyibinance/status/1737813180141666324

Summary:

When summarizing this short Insight, we can see the significant evolution and innovation in the token issuance methods in the blockchain industry. From the initial ICO to DeFi, and now to the fair distribution and community-driven models, these changes have not only redefined the way assets are allocated but also attracted widespread attention from the market. Specific projects such as Inscription, Blast, ZKFair, Analysoor, and Binance's Fair Mode, which continue to adopt fair distribution models, have received positive feedback from the market and the mainstream. The successful attempts of these projects not only demonstrate the diversity and maturity of the cryptocurrency ecosystem but also emphasize the importance of community participation and fair distribution in the future development of blockchain technology. With the advancement of these innovations, the blockchain industry is expected to continue to play an important role in the global financial and technological fields and open up new possibilities for future development.