In our previous article, we talked about COMBO token’s utility as well as how COMBO holders will own Furucombo V2. In this article, we share how you can become a COMBO holder by getting some COMBO ahead of everyone else — the long waited COMBO Token Launch.
As we have emphasized in our articles many times how much the community means to us, we want to make sure to design a fair launch of COMBO token. With that in mind, we have structured a token distribution that incentivizes the community and found an ideal platform to launch the token.
Token Distribution Plan
Phase 1
We’ve allocated 4% of the total COMBO supply for the initial launch. While the COMBO tokens distributed to the team and investors will still be under the locked up period, only COMBO tokens from the initial launch will be circulated in the market. They are all in the community’s hands to decide its fair price.
Phase 2
Once the token launch finishes, we move on to phase 2. 80% of the proceeds from the token launch will be used to open a pool on AMMs with the price discovered from phase 1, while the remaining 20% will be used for development. Moreover, a finely structured transaction mining program will be launched. Sneak peek of this program, all Furucombo users will be able to easily stake and earn more COMBO through this program.
Finding a Token Launch Platform
In the search for the right platform to launch COMBO token, we focused on the following key principles:
- Allow humans to participate fairly without competing with bots;
- Prevent token price manipulation, letting the market to determine the fair value of the token;
- Be permissionless and scalable so that everyone can participate.
While there are many options in the market, after careful consideration, we find Balancer’s Liquidity Bootstrapping Pool (LBP) design best suited for our above principles. For this reason, we decided to launch COMBO token on Balancer’s LBP.
What is a Balancer’s LBP?
Balancer’s LBP is a type of smart pool that changes its weight over time to create a more fair launch mechanism. It is designed to provide fair competition between humans and bots, minimize volatility, prevent front-running, and most importantly, to provide a healthy and stable price discovery process.
The LBP’s continuous pool weight adjustment means that the price would keep declining upon the launch. (See below explainer from Balancer’s blog post)
The Benefit of LBP
With the downward price pressure, participants compete to be the first to identify when the token has reached its fair value and to place their order when this point is reached. Such design incentivizes participants to wait before they buy, rather than FOMO in, as the best price will most likely come later during the token sale, NOT in the very beginning. You can expect the advantages given by Balancer’s LBP unique design:
- Token price does not skyrocket out of control;
- no need to worry about being front-run by bots; and
- participants are free to use any token to purchase the project token.
Unlike traditional initial DEX offering, where participants are forced to use the asset paired with the project token, with Balancer’s LBP, you can use any tokens you want to purchase COMBO as long as it has liquidity on Balancer pools. Sounds exciting right? Now let’s get into the details.
Token Launch Details
- When: COMBO:USDC pool opens at 15:00 UTC on Jan 12, 2021 for 48 hours.
- Where: Balancer’s LBP (link to the pool will be provided upon launch)
- How: The Balancer LBP will be live for 48 hours. This will be the ONLY place where you can get COMBO tokens directly from the team.
- Amount: 4% of total COMBO supply is allocated for this launch
- Weight: COMBO:USDC pool weight will start at 90:10 and decline to 30:70 over ~48 hours.
A step by step guide about how to participate in the token launch has been released. Make sure to follow us on Twitter and join our Discord channel to not miss the updates.
Links
- Website: furucombo.app
- Discord: discord.furucombo.app
- Twitter: @furucombo
