An amount of a resource assigned to a particular investor for a specific investment deal. It’s how many slices of the pie the investor gets from the whole pie. For example, let’s have an IDO for the XYZ project and 1M XYZ tokens on sale. Bob can get 100 000 XYZ token allocation worth $100 in fiat money, or 10% of the whole token sale (Hence swap rate is 1 XYZ = $0.001). The investor's allocation can be in dollars, token amounts, or percentages.
Launchpad token is a utility, access, or governance token used for accessing token sales and fundraising functionalities of the investment platform. Most commonly, launchpad investors must stake NLTs to get an allocation.
The ratio of how many shares you have in the allocation staking between token sale allocation. Simply, Multiplier = Staking Share / Allocation Share where Staking Share is Staked NLT / Total Value Locked, and Allocation Share is Allocation in Tokens / Total Token Sales in Tokens. For example, Bob can have 2M staked NLT tokens with a total value locked of 100M tokens, corresponding to a 2% share of the whole staking pool. For the allocation share, Bob can get a 1M token allocation hard cap (the maximum amount an investor can deposit) on a 25M token sale event, corresponding to 1M/25M = 4% shares of the whole investment deal. Hence, the multiplier of the investor is 2%/4% = 2: the larger the multiplier, the more capital efficiency for the investor.
It’s the discrete categorization model where launchpad investors are divided into tiers according to the staked NLTs, and each tier gets a pre-defined pool weight (pool weight: how much each tier will have from the total amount allocated for all tiers)
The first-come-first-serve model puts investors in a sequential queue with a simple policy of “whoever invests first gets the allocation until all tokens are sold.”
The lottery system is based on the luck of investors, where a lottery is drawn, and some investors are selected to be eligible for the investment deal to participate.
Entry level defines the lowest capital an investor needs to deposit before investing in the form of staking the native token of the launchpad. However, entry-level does not mean guaranteed allocation; thus, an investor can pass the entry-level to invest but still cannot be selected for investment allocation.
100% guaranteed allocation refers to the possession of 100%, not 99.9%, the guaranteed allocation for launchpad token owners in investment deals. It is the binary (either guaranteed or not, there’s no in-between) metric defined by whether the 100% guaranteed allocation is assigned to the investor who already passes entry level in the launchpad.
Insurance funds are safety nets for launchpad investors from adverse losses to protect themselves entirely or partially due to rug pulls, smart contract vulnerabilities, or extreme market volatility. Moreover, an insurance fund refers to the capital insurance reserve or pool designed by launchpad to act as a financial hedge.