A interesting proposal about the token launch / Balancer

We at Stakely.io are early supporters of HOPR and believe in the long-term success of the project. We have been running HOPR nodes and are managing the Spanish community. Instead of going via centralized platforms and KYC, I suggest to rely on a DEX which is closer to the motivation of HOPR. The best token launch model right now is definitely Balancer LBP which allows for an efficient price finding without gas wars or unfair advantages for anyone. So I suggest to distribute the 85m HOPR tokens via an Balancer LBP starting with a very high starting price and then decreasing over 72h.

LBP needs initial capital. Since HOPR did not raise a lot of money this needs to be provided somehow. EVEN if they did enough capital, these funds would stay in the DAO, so it makes sense to not chip this USD away from runway. This idea of presale + LBP was discussed before, so maybe:

  • organize a community pre-sale for 20m HOPR at a fix price of $0.05 and capped at 7000 HOPR per account
  • all Genesis DAO members are whitelisted for this sale which runs for 48h and then the funds are forwarded into the LBP.

To prevent crazy gas prices, the presale could happen on xDAI.

8 Likes

Strongly against an initial LBP for the entire 85m HOPR as other auctions held while the markets are booming have not ended well for the participants in the past.

Maybe a pre-sale of a part of the tokens and then auction would work better.

4 Likes

Well, how about something like this: A combination of xDAI fixed price presale for 20m HOPR followed by LBP for 59m… as this could be a great combination of catering towards existing community members (kinda preferred treatment), AND also give a way for new members to join.

This should then be followed by the launch of Uniswap liquidity mining for e.g. 6m HOPR over 3 months to keep decent liquidity.

So the breakdown would be:

  • 20m HOPR presale on xDAI

  • 59m HOPR LBP on main net

  • 6m liquidity mining on Uniswap

2 Likes

Imagine, you sold 20mln for $0.05 and put this 1mln to an LBP pool with 59mln of HOPR in it.
With the standard curve from 90:10 to 30:70. The initial price will be $0.18 and the last price $0.009.
So, technically speaking, presale may get tokens for 5x from the LBP.

That is not a bad opportunity for you guys to buy on LBP, but not that good for testnet participants.

So the initial proportion between presale/LBP should be more for presale, less for LBP. Something like 55mln for presale, 25mln for LBP. And the rest for liquidity

2 Likes

I agree with @Motta @carambax @SeaInvestor and others discussing 2 stage fundraising. The question is about a breakdown. @EddyHopper and @ivangbi suggested around 20M for “presale” participants. Ivan was discussing $0.05 price ($50M valuation) with 7000 allocations. In my view valuation is pretty small and investment cap too low for testnet participants.

We have these questions to discuss:

  • Valuation of Hopr for the fixed cap testnet participants? $100M valuation sounds fair to me for this round ($0.1 token price).
  • Target funds to be raised during the testnet round. The portion of that funds could go to LBP initial liquidity bootstrap (the team doesn’t touch reserves this way)
  • Amount of tokens to be allocated for Testnet/LBP. I can’t entirely agree with 20M Hopr for testnet participants. If we assume that we have 3000 participants and $0.1 token price ($100M valuation), it’s around 6666 HOPR*$0.1= $666 allocation. I would love to see something close to $1000-2000 per address. Not everyone will fill the cap. I would go with $2000 max cap with $0.1 token price. This way it’s maximum of 20,000 HOPR per testnet address — 60 M tokens for testnet participants. I believe 40-50M will be sold this way with a total of $4-5M funds raised. $1.0-1.5M could go to LBP initial liquidity and the rest to the team.
  • The rest of the tokens 35-45M could go to LBP and liquidity mining on Balancer/Uniswap

This way team gets proper fundraising from testnet participants and has liquidity for LBP.

5 Likes

@Iuriiz just shared his thoughts a little bit later than I could read it before posting my comment. Agree with you as well on the proportion of presale/lbp. Testnet participants should not be “awarded” with small allocations and LBP valuation should not be lower than testnet sale.

Agree. 55m/25m for testnet/LBP sounds fair.

1 Like

I added my proposal with the calculation to the DAO - " Community presale on xDAI + LBP + Uniswap liquidity mining V2".

So that community may choose

2 Likes

I would vote for the @Iuriiz proposal and made mine as well:
https://snapshot.page/#/genesis-dao.hopr.eth/proposal/QmbLvRxbdtExd4JSo4rQ87BhHgcU9iQvDYDiSx1S8Qb6Hv
Vote if you like it

Hi all, I’d like to share some of my thoughts about the Token launch.

The project definitely needs to accept Pre-sale for Genesis DAO + LBP + trading incentives structure. The whole question there is in the proportion between these 3 activities. Being an active participant of the HOPR testnet I suggest that Testnet participants should receive LESS tokens than Balancer Pool. Here are the main advantages for the HOPR project at all, as well as for its early contributors (Genesis DAO participants):

  1. smoother price discovery mechanism via LBP
  2. attention from the crypto community
  3. more incentives from the Investor’s side (those who’ll buy during the LBP). There is no interest from the investor’s side to buy a token when you know that testnet participants are ready to dump on you whatever the price is + have more tokens than the whole LBP event. By incentivizing the investor side, the token price will be much higher than on the situation when testnet participants just dump on the LBP investors.

Testnet participants should temper their greed and act for the good of the protocol. So, the final distributions should be following:

Community pre-sale: 30.14M tokens. Each testnet participant can buy 10,000 tokens at $0.05 for each token (50 mln valuation, much space to grow). There are 3014 participants, so 30mln of tokens would be sold via Community pre-sale. The community sale lasts 2 days. All unsold tokens are distributed to the trading incentives part.

LBP: 44.86M tokens. all collected stablecoins via the Community pre-sale round (let’s assume that we use USDC for the simplicity) are taken into the 80(USDC) : 20(HOPR) pool that acts in the same way as the PERP LBP (30/70 at the end)Thus, the initial price for HOPR will be around $0.267 (267 mln valuation). This starting valuation leaves the opportunity for the fair price discovery movement during the LBP event.

Trading incentives: 10M tokens. These tokens are used as rewards for LP providers on Uniswap (the duration of this phase is the subject of another proposal).

This kind of token distribution would be favorable for all HOPR community participants including the project itself (wide token distribution via LBP, the incentivized community who participated in the testnet), testnet participants (receive their rewards), and investors who would like to participate in LBP event.

1 Like
  1. It can be not that smooth, just check the gtable from this proposal:
    Snapshot
  2. Attention already here
  3. Project doesn’t need just investors incentives, people who participated in the testnet would not dump the price as they know what Hopr is all about. And it’s not that fair to invest $330 after all work done.

I’m on the testnet side here, sorry.

3 Likes

I agree with you
:+1:

after long discussions in the Hopr Russian group, majority of Russian members will support this proposal, i think.

#QmbLvRx 50m-30m-5m with ~800$ allocation for early adopters)

1 Like

I like @ivangbi’s proposal of community sale + LBP, but the community sale allocation proposal of equal distribution to all the 3k+ genesis DAO folks could be altered a bit to be more rewarding to the early supporters who participated in more testnets.

1 Like

We can also modify suggestion to more balance:

25m for 3000 early adopters, 0.3$
55m for LBP. starting price 0.3$ and fall to 0.005 if nobody buy.

Seems fairly and the only advantage of early adopters is the guaranteed right to participate.

#QmQ6Ab9

strongly against…see what is happening with Hydradx right now…inspite of gradually decreasing…it has been gradually going up and up due to FOMO.Balancer LBP is for best price discovery not suitable for Hopr

Greetings! Your development model is very interesting. I have a question, since I’m quite new here, how do testnet participants get tokens. Please tell me how to participate in the project and be useful to the community. Can anyone help me?