Polygen’s Raise Types
Polygen has two raise types which projects can select from. These raise types are the mechanisms associated with the smart contracts on the Polygen platform.
Polygen wants to offer an exciting way to invest in crypto projects, with various raise types in development. We are now taking an idea from the traditional launchpad ecosystem.
We are introducing a new raise type known as the “Polygen Fixed Price.” This raise type is the standard for most traditional launchpads, and we’ve decided to adopt this raise type in our offerings. The “Polygen Fixed Price” is a raise in which the price does not fluctuate in relation to demand. (eg. 1 USDC = 1 Project Token)
Now here’s the caveat when it comes to Polygen’s fixed raise.
The “Polygen Fixed Price” implements our signature raiseToken. Unlike our FLO, where the raiseToken’s price fluctuates, our raiseToken will remain a consistent price throughout the raise.
What do to know about Polygen Fixed Price?
There are three phases within the raise process: before, during, and after the raise. Before the raise begins, the project sets all the parameters for their token sale; this can be a private or public round- including IDO. During the raise is when investors get to purchase the raiseToken. After the raise, investors can exchange their raiseToken for their rightful share of project tokens.
Before investors ever get the opportunity to partake in a projects IDO. The project must first set various parameters for their raise. These parameters are:
Raise Maximum [How many tokens can be sold] — Here, projects decide on the number of project tokens they wish to allocate for the raise.
For example, a project could set the raiseToken amount to 5,000 and offer 10,000 project tokens. This creates a raiseToken to project token ratio of 1 to 2 — meaning for every raiseToken would have a claimed power of 2 project tokens.
In the end, the raise maximum for the project tokens would be set at 10,000.
Price per raiseToken — After the project has determined the number of project tokens they wish to give to the Polygen community, they must decide on the price of the raiseToken.
Let’s continue with the example from above if the project sets the price for each raiseToken to 5 USDC. That would mean if they sell all 5,000 of their raiseTokens, they would have set the hard cap to 25,000 USDC. These raiseTokens would then be exchangeable for 10,000 project tokens.
Now taking into consideration this example has a raiseToken to project token ratio of 1 to 2 (1 raiseToken = 2 project tokens). This would put their project token value 2.5 USDC per project token while having a raiseToken price of 5 USDC.
Minimum Raise Target[ How much does a project want to raise? ] — For projects to launch successfully, we require that they set a minimum as their “Target Raise Amount” this means that if the fixed raise does not reach the “Target Raise Amount,” the raise would then be refunded back to the investors of the raise.
Max purchase amount [ How many raiseTokens can each person buy? ]- Since Polygen is striving to be a fair and accessible launchpad, we require all projects to set a max purchase amount to prevent whales from purchasing the supply of tokens.
Raise period — Projects can customize the start and end times of the raise.
KYC — The project can determine whether the raise participants must KYC. “Know Your Customer” helps projects identify their customers and ensure they are real and not bots.
During the raise, all the fun starts for both the projects and the investors. This is where all the parameters set before the raise come to fruition. It is important to note that the project tokens aren’t purchased; instead, the raiseTokens are what investors purchase.
Raise period — This part is almost self-explanatory; the raise opens and closes at a specific time and date. Within the raise period, investors can purchase the raiseTokens.
No trading — Within the raise period, the start and end, no raiseToken can be exchanged for project tokens or be traded with others. Once the investor has purchased their raiseToken, they must hold on to them till the raise period ends.
Max purchase amount — All raises using the “Polygen Fixed Price” raise type will have a purchase limit per wallet to ensure no whales purchase the entire supply.
Raise target not met — If the raise target is not met within the raise period, there are no worries unlike our FLO where users are refunded, and the project doesn’t launch. We allow projects to exchange their project tokens for the raiseTokens still.
After the raise, the party calms down, and everyone gets rewarded — this is when projects begin connecting with their investors. Investors can exchange their raiseToken for the project token in this time period.
Claim project tokens — At this time, investors will be able to claim their project tokens using their purchased raiseTokens. Depending on the parameters set before the raise, the investors receive the number of tokens submitted for the raise. For example, if a project allocated 10,000 project tokens yet sold 20,000 raiseTokens. That would mean that for every 1 raiseToken an investor owns, they can claim 0.5 project tokens.
All on-chain — Polygen knows when and how much investors invested during the raise, and projects know the same. This allows projects to interact with investors who participated in the Polygen IDO.
Extras — When investors go in to redeem their project tokens, there are possibilities that projects can reward the investors with redeemable such as NFTs, unique tokens, exclusive future whitelists, and more.
Not all projects have a predetermined token price; sometimes, projects want the market to discover the token's price organically. If that is the case, the project will choose FLO powered by Poylgen as their raise type.
Our signature raise type uses a dutch auction-like pricing mechanism; however, the price is not continuously sloping downwards; it increases in price as the demand for the token increases.