DxLaunch — The First-Ever Fully Decentralized IDO Launchpad With Consensus protocol
DxLaunch is a governance-based cross chain project-listing platform built on the DeFi ecosystem.
What is our Goal?
We aim to eliminate the risks and lack of equal opportunity often associated with DeFi & crypto-based project fundraising. With innovative features like automated liquidity locking, vesting periods, Launchpools, scores, and live polls, DxLaunch will empower both DeFi projects and retail investors to raise funds and safely invest in a truly democratic, decentralized, and transparent fashion.
Ok… So What’s a Rug Pull?
Scams abound in the world of DeFi and crypto project fundraising. One of the most common forms of crypto-finance exploits is known as a rug pull. While there are countless variations of this issue, a “rug pull” typically refers to a situation in which a so-called “backer” hypes up a project or coin to attract more investors and inflate the token value. They then liquidate their holdings at the peak of profitability, leaving the average retail investor holding the bag.
We’ve all seen this before and we’ll all see it again and again. Fortunately, DxLaunch is combatting this issue with automated and trustless liquidity locking systems using their innovative smart contracts. This eliminates the ability for bad actors to liquidate their holdings until a predetermined time, effectively removing the option to “pull the rug”.
Automatic Liquidity Lock
The automatic liquidity lock refers to mechanisms that force an investor to hold their funds for a predetermined amount of time. These days, most DeFi and crypto projects attempt to assure their investors that they’ve “locked” their internal tokens until a specific date. This helps alleviate fears that the project creators or other bad actors won’t just take the money and run once the public offering launches.
The problem is, those are usually manually-placed “locks” that can be easily disregarded by the developers or influential people close to the project. DxLaunch solves this issue by using custom-built Smart Contracts to automate the liquidity locking process, making it as transparent, efficient, and decentralized as possible. That means every investor and user can see when the liquidity lock is set to release and they can feel secure knowing that there’s no way for those holders to craft an early exit.
The Importance of the Vesting Period
But what is vesting? And why is it so prevalent across the Crypto sphere? In traditional markets, a company might offer you equity as part of an employment deal. However, your stock will have to go through a vesting period first. This means you will have to wait a certain amount of time before you get access to the shares. This encourages you to stay involved in the company longer. Essentially, vesting is the process of delaying an owner’s access to an asset.
Vesting in crypto is similar although it is implemented in a broader fashion. Vesting is the process of locking and releasing tokens after a given time. Usually, vested tokens belong to team members, advisors, partners, others who contributed to the development of the project, but also investors who purchased tokens before they went on general sale. It is very common for tokens to be released gradually over the vesting period, sometimes once a month, once a week, or even daily as the project progresses.
Just like in traditional finance, vesting in the crypto world is often used to ensure long-term commitment to a project from team members. It ensures that a team has a financial interest in continuing to develop the project which, in turn, establishes faith in the project for would-be investors.
Live Polls
DxLaunch also solves the problem of project selection. As with all platforms, not every project building on DeFi will be a success. Likewise, spotting the difference between a dud and a potential unicorn isn’t always simple when examining projects at their earliest stages of development.
Fortunately, DxLaunch is backed by a veteran team and a demanding community that has a wealth of experience in scouting strong projects backed by proven innovators. The community in DxLaunch is the one who manages and decides who deserves to launch in DxLaunch. For this, we have created the Live Polls prior to granting a launch date to the projects.
So how do the Live polls work? The live polls are the previous process where the community does its research. Here they get to know the project proposal and decide based on that whether or not they deserve to offer your product to the community. The live polls last a whole week.
We always recommend knowing what is being proposed and voting with knowledge. This will generate that only the projects that bring innovations and improvements to the ecosystem will be the ones that are launched.
Road to launch
Conclusion:
Crypto is the Wild West.
It is the most innovative technological space that has ever existed, but innovation permissionless comes at a cost. New tokens flood the market by the minute and it is becoming increasingly difficult to separate innovation from low-quality products.
Market Discovery and Community consensus
Using the Live polls voting-based, rolling consensus system, users are encouraged to carry out their research in a series of collaborations focused on their knowledge and the proposal that the project brings. The Pitch and what improvement does the project has to offer have to be clear to convince the community.
This is designed to facilitate the generation of market alpha and the discovery of up-and-coming tokens from the most viable projects. DxLaunch is the system that via meritocracy and democracy rewards projects that deserve it. The community and the projects will benefit from the success.
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