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.