Our commitment to the Avalanche community is to always try and take the next right step. To listen, with open ears, to the feedback about our project and how we can best serve the community. While it might not always be possible, as there are many moving parts behind the scenes, we resolve to continue to mold Avalaunch into the image of the people that use it wherever possible. This isn’t for just us, it is for you, too. Yes, this is an independent project and we have our own vision for what this should be, but that vision involves always seeking the overlap between you and us, and it’s something we won’t ever lose sight of.
Large players should not be able to dominate the sales, no matter who they are. This needs to be solved at the product level, for it to be truly impactful. When someone accumulates large amounts of XAVA on the open market, they should not have unfair advantages on the platform. This is something we have been building for.
The Avalaunch platform will feature a maximum allocation for each sale, in conjunction with a sybil resistance mechanism (in this case, account verification) to prevent any one single party from gaining large shares of the total amount available. In other words, this platform is designed to be whale-proof. In addition to these safeguards, there are planned mechanics to level the playing field in-between sales, and redistribute wealth back toward smaller players. There is likely nothing else like it in the space. We are engineering an entirely new type of launchpad from the ground up, blending some of the most potent elements of DeFi, with an ethos of fair and broad.
This is a complex product, and the specification has evolved rapidly. We are not only keeping pace with current market trends, but attempting to innovate beyond them. This means that it has been challenging to release anything but fragmented specifics, as we don’t want to pull the curtains back on the big picture too soon.
That being said, the full launchpad overview will be coming very soon, and we can’t wait to share some of what we’ve been working on.
- A maximum allocation for each sale.
- Account verification (KYC) to prevent multiple accounts or bots.
- Planned mechanics in place to reward smaller players.
- Vested tokens cannot be staked.
Incentives and Redistribution
As we begin implementing the user interface and finalize backend development, the mechanics on how incentivized rewards programs function is critical. There are numerous considerations and chief among them is the distribution of tokens into the hands of active Avalaunch users as well as additional plans to increase the visibility and utility of the XAVA token.
Incentivized liquidity pools are an excellent first step.
Our next unlock involves ecosystem tokens which is 6.4mm XAVA. This is by design and assigning tokens to bootstrap liquidity serves multiple purposes — to offer deeper support, engage the community and get users earning XAVA.
XAVA is a token with earning power — you stake XAVA and earn XAVA, which has market value and powers sales allocations. Staking also serves to mobilize tokens and signal support for given projects. It is innate to our tokenomics and as the platform matures, it is yet another avenue through which the ecosystem tokens are dispensed.
As we move closer to Avalaunch sales, this is integral to our analytics and distribution.
While the Avalaunch platform is resilient against large holders dominating the system, there are some extra measures we’d like to take to ensure that community is at the center of the sales. The sales we host are for the future community of the projects launching on Avalaunch platform — plain and simple.
As we examined the ongoing distribution of the XAVA tokens, it became apparent that in order to optimize our offering, holistically, some additional measures needed to be taken. We will of course continue to iterate on this and course correct as needed.
To detail this information and put a clear focus on the re-weighting of the ecosystem and what it means for XAVA holders.
1. Team and advisory tokens (19% of the total supply) are prohibited from participating in sales or rewards programs.*
2. All seed tokens (14% of the total supply) will be vested for an additional six months.
3. To begin incentivizing the community, we will dedicate 1 million XAVA (a current market value of ~2mm USD) to our upcoming series of rewards programs.
*Once sold in the open market, these tokens will realize full utility.
We’d personally like to thank the seed investors and our advisors for being so flexible and willing to do whatever best serves the project. As we move forward, we are considering publishing transparency reports to illustrate how our distribution model is coming along and to demonstrate the efficacy through the increased participation of the publicly staked tokens.
- Team & Advisory tokens are prohibited from sale participation and rewards
- All vested tokens are ineligible for sales and rewards
- Seed vesting has been extended for 6 months
- Ecosystem rewards to begin next week
- Single-sided Staking — Stake XAVA to earn XAVA
- Incentivized liquidity pools (farming)
Supply and Unlocks
Currently, 76.86% of tokens eligible for rewards and sale participation are publicly owned. As unlocks continue and tokens are claimed, we will monitor and apprise in order to ensure that all parties are fairly and equitably represented.
Potential Circulating supply: 10.8m*
*On Coingecko, our API shows the current circulating supply. Tokens residing in the vesting contracts are considered locked until claimed hence the word “potential.”
At the time of this writing, there are 6.7m XAVA in circulation. To work with this dynamic figure before moving to the potential amount, here is the distribution as of today:
- 5.15m tokens from initial liquidity and the sale airdrop
- 1.55m tokens claimed from seed and private round distribution
Again, 76.86% of XAVA are publicly held while 23.14% come from seed and private round distributions. We expect this gap to close, although not entirely, as we always represented to our supporters that Avalaunch is a long-term hold. We encouraged them to “set and forget” their contributions and reiterated this point upon launch. We anticipate that any number of tokens will remain dormant for some time. Nonetheless, to look ahead and consider a fully claimed environment:
- 4.8m released from seed and private rounds
- 6m provided for liquidity and first distribution of public airdrop
This represents a more even split where 55.5% would be publicly held and 44.5% from pre-sale distributions. As we eye our first sale in June, we will continue to track this number.
The next unlock is from Ecosystem totaling 6.4M XAVA. This was done by design as these tokens are earmarked entirely for expansion of the XAVA offering and will be seeded strategically. These are allocated to anything that helps our users and supporters — from exchange listings to incentivized rewards programs to community airdrops, etc. This will be instrumental in the distribution of sale weight within our ecosystem.
As the ecosystem supply is released, a notable shift in earning power ensues. Further consider that ecosystem tokens are able to be earned by supporting our initiative. By disqualifying these tokens, the earning power of XAVA increases appreciably.
Stated earlier, ecosystem rewards make up a full 32% of the total supply and are earmarked for those that participate and support XAVA and the greater Avalanche ecosystem — staking, farming, incentives, rewards, contests, exchange liquidity, delegators, validators etc. Essentially, initiatives that increase the distribution and visibility of the XAVA token. Thus far, we have committed 2% of the supply to validators and delegators of Avalanche. It is significant and naturally, a fair amount of these tokens will be earned via liquidity provisions and any incentivized programs we may offer.
The equity increase given to active participants creates a supply that rewards more loyal users and is bolstered by the fact that these tokens are rewarded/earned but not purchased. In addition to allocations, users who interact with XAVA by staking and/or incentive programs can effectively lower the adjusted cost basis of their token purchases.
- Currently, allocations and rewards are heavily weighted in favor of the community (76.86%). This, combined with maximum allocations for each sale, should ensure fair participation.
- We expect this gap to close as tokens are claimed
- Ecosystem (6.4m unlocking May 28th) to jump-start rewards/incentives
On Our Pangolin Listing
After our listing on Pangolin saw unprecedented demand, there was, understandably, some frustration around bot activity that took place in the first minutes of the sale. While extremely frustrating, this is also, unfortunately, extremely common.
Ironically enough, this is a big part of why Avaluanch is here in the first place. To create a better experience for teams and communities so they can focus on what matters: building their product. Projects shouldn’t have to navigate the endless maze of constantly-evolving threats simply to get their token into the hands of the community. It’s a severe distraction at best and many teams simply don’t have the resources to manage it successfully at what is often the earliest stages of their evolution. Having now been through this ourselves, we believe our experience in this area provides a unique motivation to carve a different path.
When it comes to a decentralized application like Pangolin and bots specifically, one of the developers working on Pangolin summarizes his thoughts on the issue in this thread:
Should we ban bots on Pangolin?
After the XAVA token sale, community members have had enough of bots pushing out human traders. Many have suggested we add a captcha to our website and only allow real people to take part.
Here's why that won't work.
— Connor Daly 🐈(4x)🔺 (@das_connor) May 15, 2021
In summary, most “solutions” to the problems present an entirely new set of problems, so they aren’t really solutions at all. Additionally, if you value the decentralized principles Pangolin is built on, you really wouldn’t want them to work, anyway. Ultimately, it’s a nuanced discussion that traverses very subjective topics mired in semantics. Rather than circle the drain on this forever, we are going to turn our attention back toward building what we feel is a product better suited for launches. Avalanche desperately needs a launch-specific platform more resilient to bots and whales, and that’s what we intend to deliver.
Vesting Contract Parameter
One last point of transparency is regarding our token vesting contract for seed investors specifically, and an incorrect parameter that was discovered after the contract’s deployment.
The contract address is: 0xB53E0fa6898C97A477F9c05733bdc10B78e10d6A
Our developer mistakenly set that time between vesting portions to 1 minute, (60 seconds) instead of 1 week (604800 seconds). The incorrect parameter was used for testing the contract and was unintentionally left in place.
This resulted in an accelerated vesting schedule, causing the tokens to be fully unlocked by Monday, June 14, 2021 at 00:35:00 GMT+0000.
All seed investors, who contractually bound to the vesting terms have been notified of the issue, and will immediately move their unlocked tokens to a new vesting contract with the correct vesting schedule on June 14, 2021.
Furthermore, the updated vesting schedule will include the extended 6-month lock-up.
The wallets affected are:
As we move into the next few weeks, we are excited to start introducing some utility to the XAVA token and offering ways to start earning it, allowing for larger allocations in Avalaunch sales. Look out next week for a full platform overview and more details about how the platform works!