Instaraise Token allocation tiers

Kushagar Konark

13 Aug 2021

Instaraise is the first decentralized IDO platform for Tezos. INSTA will empower investors and allow projects creators the ability to provide token sales for upcoming DeFi crypto launches

Main Takeaways

  • All Token holders of IDO Token Allocation tiers will be Incentivised and rewarded in a way that is inclusive and with a low barrier to entry
  • IDO token allocation Tiers and corresponding pool weights

 

We have found a solution to incentivise and reward all token holders in a way that is inclusive and with a low barrier to entry.


We have found a solution to incentivise and reward all token holders in a way that is inclusive and with a low barrier to entry.

The fundamental flaws of existing launchpads is that acquiring enough tokens to participate in the ecosystem is prohibitive, and even if you do hold the tokens, you are not guaranteed an allocation spot. They are based on a first come first serve basis where automated bots can fill the whitelist spots in a matter of seconds. Instaraise is creating fair decentralized launches.

The interesting part of the Instaraise system is a two-round system that gives every tier level a guaranteed allocation. There is no luck, and no lotteries, and no bots, only fair distributed rewards for all participants.

Let’s take a look at how it will work

The Instaraise Allocation Round 1

Tiers and corresponding pool weights

*Whitelisting is required for every Tier based Allocation

Economy

Staking Requirement : 2,000 INSTA

Guaranteed Allocation : Yes

Initial Pool weight : 20

Staking Length Required : 14 days before allocation starts

Pool weight increment per 10 days of staking +2

Business

Staking Requirement : 20,000 INSTA

Guaranteed Allocation : Yes

Initial Pool weight : 100

Staking Length Required : 14 days before allocation starts

Pool weight increment per 10 days of staking +4

First Class

Staking Requirement : 50,000 INSTA

Guaranteed Allocation : Yes

Initial Pool weight : 300

Staking Length Required : 14 days before allocation starts

Pool weight increment per 10 days of staking +2

Extra Incentive : Access to Sale Token and $INSTA Airdrop

Executive First Class

Staking Requirement : 100,000 INSTA

Guaranteed Allocation : Yes

Initial Pool weight : 500

Staking Length Required : 14 days before allocation starts

Pool weight increment per 10 days of staking +2

Extra Incentive: Access to Sale Token and INSTA Airdrop

Key takeaways from the sale Tiers:

  • Every tier is guaranteed to have the opportunity to purchase tokens from the public pool
  • The more you hold the more you get the allocation for even a low staking amount.
  • As you advance in tiers, the number of tokens you can purchase will increase
  • We specifically designed the tiers to benefit the entire Instaraise ecosystem.
  • Tiers were designed to be inclusive to all traders, big and small, with a low barrier to enter into the first and second tier.
  • Large shareholders are incentivized to stake into the upper tiers yielding higher allocation opportunities and creating less price volatility for all holders.

**All tiers mentioned above will be eligible for lucky Airdrop to be distributed to 10 lucky participants after each sale.

Example for Token Breakdown

Let’s imagine an example project called XYZ Token that is using our Instaraise Launchpad. To simplify the math, let’s say they are selling 1,000,000 tokens in the public pool. There are 100 Tier-1 Members, 25 Tier-2 Members, 10 Tier-3 Members and 5 Tier-4 Members.

  • Tier-1 Members have a weight of 20, Tier-2 have a weight of 100, Tier-3 have a weight of 300, and Tier-4 have a weight of 500. The combined weight of all the qualifying buyers in this example is (100*20) + (25*100) + (10*300) + (5*500) = 10,000
  • The amount of tokens allocated to each “share” is 1,000,000 / 10000 = 100
  • The formula for the number of tokens allocated to a tier is given by :

num_users_in_tier * share_amount * tier_pool_weight

  • Amount Assisted for the tokens will be :

The amount of tokens for. Tier-1 is 100 * 100 * 20 = 200,000

The amount of tokens for Tier-2 is 25 * 100 * 100 = 250,000

The amount of tokens for Tier-3 is 10 * 100 * 300 = 300,000

The amount of tokens for Tier-4 is 5 * 100 * 500 = 250,000

  • The formula for the number of tokens a user in a Tier can purchase is given by:

The amount of tokens for each user in Tier-1 is 200,000/100 = 2,000

The amount of tokens for each user in Tier-2 is 250,000/25 = 10,000

The amount of tokens for each user in Tier-3 is 300,000/10 = 30,000

The amount of tokens for each user in Tier-4 is 250,000/5 = 50,000

*These calculations are shown to brief the users about how the allocations happen. Taking considerations like Pool weights to be the same for sets of people joining the pool with the same score. It will be done on an individual basis if for every pool weighted score we have.

Instaraise FCFS Round 2:

What will happen to the Unsold Tokens?

In round 2, the unsold tokens from the first round are made available. All tiered members can purchase an additional amount that is determined by a tier-based formula. The second round buying window opens at the same time for all members, regardless of tier level. This round is open until all tokens are sold, typically lasting for only a few minutes. After all the tokens are sold, the IDO is concluded.

We will be collecting both data and feedback on the IDO structure in order to optimize the system over time as well as taking into consideration community feedback.

Our system is a provably fair system giving our users the proper incentives to accumulate and hold tokens and support each and every project launched.

Over time, we will tweak weights, add new tiers and change other parameters as necessary to keep the system functional, competitive and rewarding for all community members.