OpenPad has a multi-stage project vetting policy, promoting a more decentralized and independent project selection for financing. It’s a layered due diligence framework starting with OpenPad Lab's vetting, followed by an Investment Committee governance. IC is an independent, aligned, professional council hosting due diligence officers, venture capitalists, financial researchers, and auditors. This framework promotes a more independent, transparent, censorship-resistant, decentralized financing process. The finalized governance scheme is under work; however, the initial governance will require an 80% quorum. The voting power will be 50% weight on OpenPad Labs and 50% IC. Every 5 members of the IC will have 10% weight. 3 out of 5 IC members will need to vote yes to onboard projects. The governance is off-chain and doesn’t depend on the tokens. The economic model of IC is taking a token allocation of OPN and also depends on the project tokens. IC will have only 1 week to vet projects with a written report elaborating on their decision-making process. OpenPad Labs will prepare a detailed DD report involving at least 12 areas and forward the IC for their analysis: community (engagement levels etc.), business (innovation level, competitive market, GTM, and sales strategy), operations (team, work division, track record), legal (team background check, company verification, utility token verification, legal opinion, KYC & AML (shareholders > 25%), project legitimacy check, KYB), product (MVP, testnet, mainnet, etc.), economics (token economics, death spiral checks, token utility verification, etc. ), technical (technical concept understanding, algorithmic checks), marketing (social presence, marketing power, and content checks), key partner check (VC, launchpad, MM, CEX/DEX, audit, marketing agency, etc. checks), future plan check (liquidity to marketing to product roadmap check), market (market trends and conditions check), and security (smart contracts audit checks, open/closed source checks).
OpenPad Labs IDO Policies
Even though deal terms can change over time due to economic conditions and upgrades, OpenPad expects strict and binding requirements from projects.
- 14 days is the maximum amount of time between listing/liquidation and IDO. The funds will be 100% locked until the liquidation and market-creation process.
- Projects need to lock enough liquidity as long as the deal’s vesting terms by the verified smart contract, either from a verified third party or projects. The liquidity amount will be written in legal docs after the mutual agreement between OpenPad Labs and the project.
- IDO tokens must be sent at least 24 hours prior to the launch, and all tokens must be distributed by OpenPad. OpenPad’s official dApp will serve as the central place for investment and token management.
- A security audit from a reputable third party is needed for onboarding.
- Legal Opinion letter stating that the token is not considered a security from UK, US, or Singapore-based law firms is needed for onboarding.
- The project founders who have more than 25% equity in the company should pass the legal checks, KYC/KYB, and AML. OpenPad will pay the necessary costs for verifications.
- The IMC and initial liquidity should be approximately 1:1. If there is an outlier, we expect a strong market maker that can provide enough liquidity for capital efficient trading.
- Off-chain tokenomics should 100% follow the on-chain tokenomics. Any other case or neglect will be counted as malicious intent.