The basic process for Polygen is:

  1. The trust and pools are established with a freshly minted project/event token and some starting capital for trading.

  2. The liquidity bootstrapping pool is used to distribute the freshly minted tokens.

  3. The pool is closed Some of the raised funds are forwarded to the minted token contract.

  4. The creator receives the bulk of the raised funds Some fees are distributed to other stakeholders.

  5. Any undistributed tokens are burned and all distributed tokens are frozen.

  6. The creator creates and distributes rewards over time in many ways:

    1. Creating claimable NFTs and other perks that require claimants to hold a minimum balance of the distributed token.

    2. Sending erc20 tokens to the distributed token contract that require claimants to burn their tokens to redeem.

    3. Hosting real world exclusive events etc. that require claimants to hold a minimum balance of the distributed token to participate.

    4. The process requires a high degree of trust between the creator and their fans as there is no on-chain mechanism to enforce delivery of any perks.

    5. The token minting, distribution, burning is all trustless as the deployed Trust contract handles construction and ownership of the other contracts.

    6. As each Trust is dedicated to a specific project or event there are no admin or upgrade functions.

    7. Future versions of Trust will simply be picked up by new projects and events as they arise.

    8. The Trust has native integration with the Tier membership system included as a git submodule.

    9. Any account that does not have a minimum membership status cannot receive the distributed token and so cannot participate.

    10. This allows additional requirements to be placed on the participants by the deployer of the trust.

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