☒️IDO Rules

Tocen has a unique set of requirements as follows:

Funds Distribution

Based on the project's established vesting schedule, Tocen will only transfer funds in batches. The first batch fund will be transferred within 48 hours after the token listing event on the exchange, and the subsequent transfers will follow the vesting schedule of projects.

This will allow Tocen to hold raised amounts for refunds in a safe vault in case of rug pools or any other critical failure caused directly or indirectly by incompetent project management.

  • Details:

After TGE: 30% distributed for liquidity-adding on DEXes

Within 48 hours after TGE: 20% distributed to projects as operation funds

Based on the project's vesting schedule:

1st vesting: 12,5% distributed

2nd vesting: 12,5% distributed

3rd vesting: 25% distributed

For example:

A project raises $100,000 in an IDO on Tocen. Within first 48 hours, $30,000 will be distributed for liquidity-adding process on DEXes meanwhile $20,000 will be distributed to projects as operation funds for projects.

After that, funds distributed will be equivalent to $12,500, $12,500, $25,000 in the 1st, 2nd, 3rd vesting respectively.

Liquidity Maintenance Requirement for the project:

Projects must maintain a certain level of liquidity over time to ensure that the market remains healthy and stable. This may involve periodically adding more funds to the liquidity pool, working with market makers to provide additional liquidity or allow users to stake their tokens to earn incentives from projects.

Low liquidity levels for a specific token lead to volatility, prompting severe fluctuations in crypto’s swap rates. Conversely, high liquidity means that heavy price swings for a token are less likely. If projects maintain low liquidity or no liquidity in the pool, which leads to the high slippage or servere fluctuations, the rest of funds raised will be refunded to users.

Tocen will have daily updates with DEXes partners to double-check the maintenance of project's pool.

Refund mechanism

The Refund mechanism will apply to all Tiers if the project fails to satisfy the Liquidity Maintenance Requirement.

Last updated