Ignition’s Token & Incentive Mechanism
Ignition, PAID Network’s Initial DEX Offering (IDO) platform allows PAID token holders the opportunity to participate in curated and novel private and public token swaps, you can read about here. When conceiving Ignition, we have placed great emphasis on how we create a loyal community that best serves both projects and purchasers over the long term. As previously promised, we are excited to be able to share details as to how we are achieving this, and solving what we term the ‘incentive problem’.
What is the incentive problem?
We understand that much of our community are interested in exciting new technologies and wish to participate in new token sales because, put simply, they are almost impossible to get into. But that is not the only thing that has become apparent from talking to community members in recent months.
Token purchasers not only want to be able to be a part of innovative, disruptive technologies, but they also want to have a fair and transparent process that rewards those who act in the ‘right’ way. Furthermore, they want to feel like they have a voice that is heard, rather than being treated like they should be grateful to be able to participate.
Put simply, users want to be able to participate, but they want to do so in a more accessible and user-friendly way.
We also have the interests of project teams to keep in mind. Without project teams, Ignition has no projects to launch. Therefore, meeting their needs is also important. At PAID Network, we have been through the process of launching a new project, and we understand what founders are looking for when choosing a platform to launch on.
Founders want to be assured that they are launching on a platform that can not only execute a successful and oversubscribed sale, but one with a community that is in it for the long run; they want purchasers who are committed to the project.
How does Ignition solve this?
There are many ways we could solve this problem. The challenge is to do so in the simplest manner that does not burden either purchaser or project.
We believe we have come up with a solution that engineers the fundraising process to attract these long term believers. We do this by creating a fair process that rewards purchasers who not only support the project at launch, but do so throughout the lifecycle of the project by holding or utilizing the token.
Through this, we reduce price volatility of new listings, while simultaneously making it more attractive to those in it for the long term and the true future users of the platform. By engineering a community with a longer-term focus, we align the interests of purchasers and project teams.
This is important, because with technology, it is often the earliest adopters who are also the biggest supporters for the product, and act as evangelists who spread the word to friends, family, and across online communities. Projects such as Chainlink and Doge are good examples of communities with passionate supporters who have held for the long run, and who have helped make the projects the successes they have become.
At present, there is no reward for being a ‘good’ supporter such as this, but these are the people who typically hold the longest and help communities expand. Worse, not only do they not receive any reward, but because sales are often over-subscribed and difficult to get into, projects risk losing their biggest supporters before they have even launched if the sale is not run correctly with everyone’s interests at heart.
The incentive mechanism
Our IDO platform will evolve over time to achieve the aims outlined above. This will include a more complex mechanism that rewards long-term holders not only of PAID, but of IDOs launched through Ignition.
We are incredibly excited to be launching our first IDO shortly. This will reward PAID holders through a simple lottery process that aims to reward purchasers proportional to their PAID holdings.
Those who have held or staked their PAID tokens will be eligible to enter one of 3 tiers, dependent upon the size of their holding. These are:
- Moon: Any wallet with at least 1,000 $PAID tokens will receive one lottery entry for every 1,000 $PAID tokens.
- GALAXY: A wallet with 75,000+ $PAID tokens is guaranteed one public allocation in addition to the one lottery entry for every 1,000 $PAID held, for additional chances to win!
- COSMOS: A wallet with 150,000+ $PAID tokens is guaranteed one public allocation and one pre-sale allocation, in addition to the one lottery ticket for every 1,000 $PAID held.
This mechanism will then be refined following the first sale, as it will take into account not only people’s holdings of PAID, but also that of the first project who launches on Ignition. Through this, we will create a new fundraising process and make Ignition the go-to platform for purchasers and project teams alike. Please stay tuned, we will announce our first project to list in the coming days!
For any questions, please feel free to reach out to us on:
Website: https://paidnetwork.com/
Telegram: https://t.me/paidnetwork
Twitter: https://twitter.com/paid_network
Medium: https://medium.com/@Paidnetwork
