MT Capital Insight: Fair Launch - A profound change in the way tokens are issued

TL;DR

In the past few years, the blockchain industry has undergone tremendous changes, especially in the way tokens are issued. From the initial simple ICO to the complex DeFi structure, to today’s Fair Launch and community-driven models, these changes have not only reshaped the landscape of asset allocation, but also attracted widespread attention from market participants. Next, we will delve into several representative projects, each of which has demonstrated innovation and progress in this field through its unique token issuance method.

This article provides an in-depth analysis of several key projects, from Inscription’s retail-driven model, to Blast’s incentive innovation, to ZKFair’s emphasis on fairness, to Analysoor’s innovation in distribution methods, to Binance’s use of Fair Mode to redefine the token economy. These projects not only demonstrate the diversity of the cryptocurrency ecosystem, but also reflect the market’s growing demand for transparency and fairness.

MT Capital Investment Director Ian’s perspective: “In project experiments such as #BRC20, #Blast, #ZERO, #ZKFair, etc., we have witnessed a great innovation - fair distribution for everyone. They do not rely on platform coins or investments, rather the earliest participants have completed the investment, distribution, marketing and evangelism of the project. This is similar to liquidity mining in DeFi Summer. The project’s own liquidity incentives create prosperity for the entire chain. Fair distribution has greatly enhanced community participants’ enthusiasm, which reached unprecedented heights.”

Inscription

The rise of Inscription is similar to the previous DeFi Summer, and its core lies in the concept of Fair Launch. This concept was very popular during the DeFi Summer period, and it mainly means that the project side does not retain any shares during the initial token distribution. For example, Andre Cronje, the founder of Yearn (YFI), claimed that he did not conduct pre-mining, reserve tokens, or notify insiders in advance. This approach greatly enhanced his reputation and brought huge TVL to Yearn.

However, as DeFi Summer gradually comes to an end, the market has witnessed more and more projects emerging, and the entire cryptocurrency ecosystem has become more mature. During this period, capital began to enter the market, launching a VC-driven project startup model. Under this model, projects with large financing amounts and high reputation of investment institutions are more likely to attract market attention. This has also given rise to some users who mainly rely on “free ride” for survival and ordinary retail investors who are eager for airdrops of star projects.

In this context, the emergence of inscriptions brought new changes. It is regarded by some as a “world of retail investors” because all chips are entirely cast by retail investors themselves. Although Inscription is viewed by some critics as merely having the attributes of a meme coin and lacking long-term practical application scenarios, it provides more opportunities for retail investors. As more and more Inscription projects are born and end the asset issuance stage, the Bitcoin ecosystem is expected to enter a new application construction stage.

https://geniidata.com/ordinals/index/brc20

Blast

Since its launch on November 21, Blast has quickly become the focus of the cryptocurrency market, demonstrating its innovation and attraction in the field of Layer 2 networks.

Blast is a Layer2 network launched by Blur founder Pacman. Based on Optimistic Rollups technology, Blast is compatible with Ethereum, providing developers and dApps with convenient access. The rapid growth of Blast’s TVL and number of users is quite eye-catching. Currently, Blast TVL has reached US$1 billion.

Additionally, Blast has completed a $20 million funding round with participation from Paradigm and Standard Crypto.

One of the main ways Blast attracts users and developers is through airdrops and incentives. According to the plan, an airdrop will be held in May 2024, aiming to reward early members and developers. Users can earn points by depositing assets and inviting new users to join the Blast L2 network. These points will directly affect the number of airdrops they receive. This mechanism incentivizes user participation and promotion.

The core appeal of Blast is its combination of staking mining and additional rewards. By depositing funds into Blast and using Lido to stake on the Ethereum mainnet, users can not only obtain staking benefits, but also receive additional Blast rewards. The fundamental purpose of this strategy is to increase TVL and attract more users to participate in order to obtain additional Blast rewards. Blast’s success relies on its innovative Layer2 solutions and incentives that attract users and developers.

https://dune.com/0xramen/blast-stats

ZKFair

ZKFair (ZKF) is an innovative Ethereum-based project focused on building a fair and community-driven second-layer network. As the first ZK-Rollup on Ethereum to leverage Polygon CDK and Celestia DA technologies, ZKFair’s core goal is to lower the current high entry barrier for users in the second-layer network. In the current market environment, many ZK-L2 projects are led by VCs and have high valuations, and it is difficult for ordinary users to obtain substantial returns from them. These projects also encourage users to pay high transaction fees, but the distribution of token incentives is slow and not friendly to ordinary users.

ZKFair seeks to change this by creating a fair-launched, community-driven network. Not only is this network technologically advanced, it is also powered by Lumoz RaaS. The project’s native token $ZKF follows a 100% fair launch approach, with no shares reserved for investors, pre-orderers or early miners. All tokens are planned to be airdropped to the community after the mainnet is launched. The total supply is set at 10 billion, of which 7.5 billion will be used for gas fee airdrops and the remaining 2.5 billion will be used for community users.

What makes ZKFair compelling is its unique market positioning and distribution strategy. Market analysts are generally optimistic about its opening potential, and it is expected that it may achieve a value increase of 5-10 times. It uses the stablecoin USDC as Gas, combined with a low market capitalization and a novel chip distribution model, this project provides investors with an attractive story and a fair distribution mechanism. Regarding token acquisition, the rules state that addresses that have interacted with platforms such as zkSync, Scroll, ZKSpace, Polygon EVM, Linea, etc. within a specific period of time are eligible for airdrops. In addition, the project also stipulates the detailed process and restriction rules for burning Gas to obtain ZKF tokens, as well as strategies for how to quickly consume Gas by interacting with Dapps.

L2BEAT – The state of the layer two ecosystem

Analysoor

Analysoor is the first Meta Protocol on the Solana chain, introducing an innovative approach to NFT and token creation and distribution. At its core, it uses the block hash as a random number generator to select a winner per block, effectively neutralizing the influence of bots in the minting process of $ZERO and Index ONE NFTs.

Analysoor’s fair issuance mechanism focuses on fairness and liquidity orientation, with no pre-sales, whitelists, team allocations, and no GAS fees paid for first-mover transactions. This means that every participant is on the same starting line, and differences in funding size will not affect the casting competition. Minting fees do not go to the project party or miners, but are used to increase liquidity and support the ecology and community.

Analysoor is building a strong community consensus, and its value and potential are being recognized by more and more people. Developers are also working hard to adopt more innovative methods to combat potential bot behavior and ensure the long-term maintenance of fairness, in which AI algorithms and machine learning will play an important role.

Compared to mainstream Launchpad projects on other public chains, Analysoor’s current market value may be undervalued. Considering that there is no leading Launchpad protocol in the Solana ecosystem, Analysoor has the potential to fill this role and achieve huge value growth in the future.

The market’s demand for fairness and transparency is growing, and the Fair Launch mechanism will become a trend. Especially on high-performance public chains such as Solana, 2024 may be the year Meta Protocol breaks out. As the pioneer of Fair Launch on the Solana chain, Analysoor has great potential and strong vision, and may expand into a multi-functional Launchpad in the future.

@GryphsisAcademy/analysis-0-1-innovating-fair-launch-with-random-hash-4a36ad6a0437"">https://medium.com/@GryphsisAcademy/analysis-0-1-innovating-fair-launch-with-random-hash-4a36ad6a0437

Fair Mode

Binance’s recently launched Launchpool mode “Fair Mode” represents an important innovation in the token economic system. The core of this model lies not only in the project itself, but also in the reimagining of the token economic system, aiming to promote the long-term healthy development of the project. Fair Mode has introduced a long-term development fund accounting for 27%. These tokens cannot be consumed or sold, and will not enter the market circulation, but are used for staking and participating in the ecosystem to support the continued growth of the project. In addition, the model fairly distributes up to 21% of tokens to retail investors out of 25% of its initial circulation, including Binance launchpool and airdrops, which not only increases the community’s influence in project decisions, but also inspires them to cooperate with project parties. willingness to cooperate.

By increasing the initial circulation and reducing future unlocks, Fair Mode reduces selling pressure in the market and lays the foundation for long-term stability of the token value. At the same time, by reducing the token proportion of the team and investors, this model reduces their ability to manipulate the market and helps maintain the healthy value of the token. Binance has demonstrated its deep understanding of the industry by introducing Fair Mode, which may lead a new trend in the innovation of token economic systems. This model emphasizes the rationality and fairness of token distribution and is expected to become an important factor in promoting the development of the entire blockchain technology and token economy.

https://twitter.com/heyibinance/status/1737813180141666324

Summary:

In concluding into this short Insight, we can see the significant evolution and innovation in the way tokens are issued in the blockchain field. From the initial ICO to DeFi to today’s fair issuance and community-driven models, these changes have not only redefined the way assets are distributed, but also attracted widespread attention from the market. Specific projects such as Inscription, Blast, ZKFair, Analysoor and Binance’s Fair Mode have continued to adopt a fair distribution model and have received good feedback from the market and major players. The successful attempts of these projects not only demonstrate the diversity and maturity of the cryptocurrency ecosystem, but also emphasize the importance of community participation and fair issuance in the future development of blockchain technology. As these innovations advance, the blockchain industry is expected to continue to play an important role in the global financial and technology sectors and open up new possibilities for future development.

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1. This article is reprinted from [MT Capital]. All copyrights belong to the original author [Xinwei, Ian]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
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