Initial Farm Offering (IFO) on BecoSwap
BecoSwappers and BECO holders, today we are proud to give you a sneak peek of our new Initial Farm Offering (IFO) format on KardiaChain!
(TLDR — New IFOs is coming. The token sale format includes 2 sessions: Basic (max $100 contribution per person) and Unlimited (no max contribution, participation fee). IFOs will burn more BECO than ever before.)
1. You’ll need a KardiaChain wallet, with BECO-KAI LP token, in order to participate the sale.
2. There will now be two ways to participate, rather than only one: Basic and Unlimited.
Want to participate in the IFO and get the most bang for your buck? This is for you.
In the “Basic” session, each person can contribute a MAXIMUM of $100 equivalent in BECO-KAI LP tokens.
The amount of tokens available in this format will typically represent around 30% of the total sale.
Note that the final allocation you receive will still be subject to the total amount raised in this session, but the good news is you’re not battling any whales.
As the name suggests, the “Unlimited” session has no limits on the amount each person can contribute. However, this comes at the cost of a participation fee.
The number of tokens available in this format will typically account for 70% of the total sale.
As an example, the fee cliff might look like this:
How much is the participation fee?
The participation fee will start at 1%, which is only applied to your contribution to the “Unlimited” session.
The 1% participation fee decreases in cliffs, based on the percentage of overflow from the “Unlimited” portion of the sale.
Note that both the fee and scale are not fixed and will be customized for each IFO.
Where does the participation fee go?
The participation fee collected will go straight to be burnt. The BECO-KAI LP tokens from the participation fee will be decomposed, then we will use the KAI portion to market buy the BECO equivalent, then finally throw all of the BECO in for the weekly burn.
Yes, on top of the BECO from the IFO sale itself.
Yes, that means as a result, we will likely burn way more BECO, in addition to recurring buy pressure from IFOs post sale.
Will the participation process still be the same?
Yes, the only real difference is that there are now two ways you can participate, instead of one.
Can I participate in both sessions of the sale?
Yes, you can do both, one or neither, but only if you have KardiaChain wallets already created with BECO-KAI LP tokens.
Why did we opt for this method?
While we can’t please everyone, we heard the feedback from the community loud and clear. So we opted to go for a bit of both, with the added objective of burning more BECO than ever before.
The “Basic” session will ensure people get a much larger allocation for a much smaller commitment ($100 equivalent) than they would have in the previous method. Also, at the bottom of the participation fee scale, it is likely that people will end up paying almost twice the USD equivalent per token as people that participate in the “Basic” session. This is due to the fact that the cost of their allocation may be equivalent to the participation fee.
In addition, the above would also help create an artificial price floor for the project since the initial cost of participating in the sale has essentially doubled to those in the “Unlimited” Session, without inflating their market cap.
There is also some interesting game theory in place with the whales that would previously create BECO-KAI LPs at the very last minute to participate in the IFO. If there’s less participation now with the fee, then the people that do participate get a higher allocation, and vice versa.
To sum up this section — Whales or those participating in the “Unlimited” session will pay more for their tokens than those that participate in the “Basic” session.
If you have any other questions at all, feel free to throw them at us on Twitter using the hashtag #BecoSwapIFO and we will answer as many as we can.
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