Initial Decentralized Offerings (IDOs)
HeadStarter has developed and audited a variety of Initial DEX Offering (IDO) pool configurations along with features for each pool. These configurations support multiple scenarios to ensure secure and transparent token distribution while accommodating different project needs and regulatory requirements.
Introduction
Initial DEX Offerings (IDOs) are a decentralized and efficient way for web3 projects to leverage crowdfunding against an utility token distribution event. Unlike traditional fundraising methods, IDOs leverage the power of decentralized exchanges to offer immediate liquidity, lower costs, and broader access.
What are IDOs and How Do They Work?
An Initial Decentralized Offering (IDO) is a type of token sale that takes plane on DEX or on specialized Launchpads. In an IDO, a project launches a new token and sells it directly to investors in exchange for cryptocurrencies like HBAR. This process is facilitated through smart contracts that manage the sale, distribution, and vesting of tokens.
Key Features of IDOs:
Immediate Liquidity: Tokens are immediately tradable on the DEX once the sale is complete, providing instant liquidity.
Lower Costs: IDOs typically have lower listing and transaction fees compared to centralized exchanges.
Accessibility: Open to a global audience, allowing for broad participation.
Transparency: The use of smart contracts ensures a transparent and secure process.
Supported IDO Pool Configurations
1. Standard IDO Pool:
Whitelisted IDO: Allows immediate token redemption following pre-configured working dates (start, end, and redemption).
Vested IDO: Configurable percentage-based access to bought tokens, consisting of an initial cliff and subsequent linear, regular claimable time steps. Used for HeadStarter's HST token releases.
2. Exotic IDO Pool:
Merkle-Based Pools: Designed for high-volume whitelisted pools to mitigate Hedera's state-storage limitations. Note: This type of pool may be phased out due to continuous network updates and increased state limits.
3. Multi-Party Withdrawal IDO Pool:
Allows the owner to set a list of addresses with allocated percentages at contract deployment. Withdrawals distribute gathered HBARs according to these allocations.
Key Features of IDO Pools:
Token Exchange: All pool configurations allow for exchanging HBARs (Hedera's native coin) for the offered tokens based on a set release schedule.
Role-Based Access: Separates concerns around pool management. Roles include administrator, pool owner, and planner, each with specific permissions.
Dynamic Date Management: Pool dates (start, end, redeem) can be adjusted until the pool starts accepting contributions. After the start date, these dates cannot be changed.
Whitelist and KYC: Pools can be whitelisted, and participants must complete KYC to join. If an address is whitelisted but KYC is incomplete, the process can be finalized while the pool is active.
HeadStarter Dual-Pool System for IDOs:
HST Holders Pool: Allocates approximately 66% of token allocations.
Non-HST Pool: Open to all who register interest, ensuring broad accessibility.
Technical Infrastructure:
Smart Contracts: Utilizes Hedera Token Service (HTS) and Hedera Smart Contract Service (HSCS) through secure smart contracts audited by Hacken.
Development SDK: Built on an in-house developed, open-source Hedera Hashgraph development SDK, called Strato JS.
Core Principles:
Innovation: Constantly evolving to incorporate cutting-edge technologies and methodologies.
Transparency: Ensures open and honest communication with the community and stakeholders.
Regulatory Savviness: Adheres to regulatory requirements to provide a compliant and secure platform.
Technical Details:
Once deployed, the pool allows for date changes up-until the moment the start date. Once a pool starts accepting claims, these dates can no longer be changed.
Any unsold token can be withdrawn by the owner after the redeem start date has been hit.
A role based access system has also been implemented to separate concerns around pool management. The account that creates the pool automatically becomes an administrator, a pool owner and a planner. This means he/she can add or revoke other roles to other accounts (including the admin role itself).
Thus, a planner can set the pool dates (start/end/redeem values) and can adjust the token details (maximum amount of claimable token and price per token). A owner can deposit tokens, withdraw unsold tokens (as previously stated) and can withdraw the native tokens (hbars) collected by the pool.
In case a pool is open and an address has been whitelisted (or if it's a free-for-all pool, aka "no kyc required") yet the account owner did not finalize the kyc process, we do allow it to be done while the pool is active so that, upon successfully completing it, the whitelisted account owner can still be able to join the pool.
Conclusion
By leveraging these configurations and principles, HeadStarter aims to offer a seamless and efficient platform for blockchain projects to conduct their token sales, ensuring success and growth within the Hedera ecosystem.
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