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Problems & Solutions
Today's launchpad investors suffer from several back-breaking problems.
- Ever-Growing Barrier to Access: Top-10 launchpads have an average entry requirement of $300 to access token sales. Moreover, they have a token price-backed entry barrier, meaning if the price goes up by 2x, so does the barrier, leaving small investors out of the game*.
- High-Entry for Guaranteed Allocation: Top-5 launchpads have an average entry requirement of $40,000 for guaranteed allocation, eliminating more than 85% of the market.*
- Complex Allocation Policies: Multi-level tiers, whitelisting, first-come-first-serve wars, and lotteries put most investors out of the game.
- Lack of Insurance: Top 50 launchpads have no insurance reserves to protect investors from extreme conditions. There are no insurance reserves or products in the market to protect investors from extreme conditions. Moreover, poor vetting of Web3 projects leads to capital loss the investors.
- No way to fundraise after ICO: Currently, ICO/IDOs are the final stages Web3 companies can raise capital with tokens. Hence, there is no way to fundraise with tokens after ICO/IDOs in the market for Web3 projects -- dApps, DeFi protocols, and DAOs. Most Web3 project inevitably relies on selling native utility and governance tokens in the market to find liquidity and capital.
- Insufficient Due Diligence: Poorly-vetted launchpad platforms leads to capital loss of the investors.
- Staking at Pre-Sale & Unstaking at Post-Sale: Since there is no time-dependent allocation model, investors are motivated to stake native launchpad tokens just before the sale begins, and unstakes just after the sale ends, creating an unsustainable price model.
- The lack of incentives for Extra Capital Contribution: refers to the incentive scheme of depositing/allocating extra capital into investment deals on top of existing investments, measured by how much your allocation will be increased with respect to the increase in your staked native launchpad tokens. In tiered systems, since investors are discretized and categorized according to the staked token levels (how many tokens they staked) unless they jump from the current tier to the next-high tier, there is no value, reason, and incentive to stake more launchpad tokens.
- Unfair Allocation Economics: The accumulation of allocations by the crypto whales is a superheated topic among crypto-asset enthusiasts since whales can cause more gigantic waves in crypto markets, especially in lower liquidity and higher volatility markets, creating unfair allocation economics.
- Unsustainable Tokenomics: Short-term business and token models cause either hyper-inflationary or no-value economic models, operating based on the newcomers to the economy.
OpenPad offers breakthrough and all-powerful solutions to existing problems.
- Fixed $1 Entry: Anyone with $1 worth of $OPN gets access to the Web3 investment deals.
- 100% Guaranteed Allocation: Every $OPN staker is 100% guaranteed to get an allocation in token sales.
- Simple Allocation Policy: The more and longer the stake $OPN, the larger the allocation.
- Fractional Insurance Funds (FIF): Qualifying investors are guaranteed a partial or full refund, de-risking the early-stage investment deals.
- Follow-on Token Offerings: Crypto-native bonds for secondary token offerings. FTO is a secondary token and liquidity offering based on crypto bonds to finance vetted Web3 startups after their initial token offerings. Built by OpenPad to fundraise Web3.
- Multi-stage Due Diligence: OpenPad is a deeply-vetted platform, enabling only first-class Web3 projects that pass a thorough due diligence process, followed by analysis from an expert investment committee.
- Time-based Staking Incentives: OpenPad's allocation policy incentivizes investors to stake $OPN earlier and longer, as both time and the capital amount has a compound effect on the allocation, creating an economic-layer bi-directional incentive scheme to stake.
- Incentives for extra capital contribution: OpenPad's allocation policy creates incentive schemes to stake more $OPNs to be eligible for depositing extra capital on top of existing investments.
- Fairer Allocation Economics: OpenPad's allocation policy favors long-term $OPN stakers and low-to-middle-size investors via increasing staking-to-allocation ratios. Moreover, hyper-centralization of allocations is avoided through
- Anti-whale protection: OpenPad creates a tamper-proof algorithmic solution for the accumulation of tokens in single hands in the economics layer. Hyper-centralized accumulation of tokens is extremely disincentived through the newly-developed Compounded Tokenized Incentive Allocation model.
- Bot protection: As every investor needs to complete their KYC and has a personal investment cap in the both staking and public rounds, any programming bot won't increase the allocation or yield.
- Flash Loan allocation protection: Since allocations are calculated as time-weighted, the flash loan attacks can not benefit from any token sale.
- Sustainable tokenomics: OpenPad partners with marketing-leading tokenomics engineers to optimize the long-term sustainability of the token economic models.