Introducing Solanium Shield
Cryptocurrency is an insane yet interesting game. High risk, high reward is what attracts people to the market, but it’s also what drives many out. Regardless of whether you are an investor or a project, the market influences both.
The past few months have seen an extreme bearish market, and many people predict a crypto winter to come or it’s already here. It’s hard to say what will happen, but as we look to the future, we believe that crypto is here to stay #BULLISH. For us, we are here to build towards that future.
Last March, we announced the Solanium Governance Program, a feature that empowers the community to vote to accept or reject a project launch. Although our community makes their investment choices at their own risk, we feel their desire to be protected and secure, especially during poor market conditions.
To complement Solanium Governance Program, we’re excited to introduce Solanium Shield to our pipeline procedure, along with a refund policy. Solanium Shield aims to strengthen our due diligence process and more.
New terms in managing funds
1/ Raised funds will only be sent to the project team after the first vesting issuance.
This rule is geared toward project teams with tokenomic designs that include cliff/monthly vesting for public rounds. In these cases, Solanium will act as an escrow account to hold funds post-TGE for at least 1 month and will only release 50% of funds after the first vesting period and the other half after the second vesting period. This will enable us to reduce investment risks and ensure a profitable return on investment for IDO participants.
For projects that have a 100% unlocked public allocation at TGE, Solanium will release 100% of the funds after 2 months.
2/ Refunds will be made to investors if projects fail to maintain the token price above IDO price between TGE and the second vesting period.
The trading price of a token should reflect the strength of project development to a certain extent. To protect our investors from incompetent TGEs, if project teams fail to sustain their trading token price above the sales price prior to the second vest, we will force refunds to all investors.
This will drive projects to spare no effort to keep on building while ensuring the community with trust and loss recovery. Until the second vesting is completed, the project teams must strictly adhere to this regulation.
Unless any fraudulent activity from projects are recorded or any red flags are identified, the amount of funds collected equal to the unlocked TGE token value will always be transferred to the project team after the second vesting.
Here’s how it works:
- TGE: No refund unless bad actors from projects are found
- First vesting: From TGE to the first vesting period, a 50% refund will be made if the trading price falls below the sales price
- Second vesting: From the first vesting to the second vesting period, the remaining 50% will be refunded if the trading price falls below the sales price.
New due diligence standards
1/Project tokens needs to be on Centralised exchange in order for the launch tokens sales on Solanium unless special cases.
A successful token launch needs centralized exchange listings for exposure and liquidity. Unlike decentralized exchanges, where most projects can create permissionless liquidity pools for token swapping, top-tier centralized exchanges will evaluate the project quality through its serious due diligence before official listing. The tokens that are listed on centralized exchanges often have a market validation for healthy price discovery.
To reinforce due diligence process and to ensure successful listings, Solanium will require projects to have a listing on the TGE date with at least one of the top 10 CEXs ranked by trusted sources. However, liquidity might be a concern for project founders, hence in the event of special cases, it will be discussed case by case basis.
2/ Projects in the pipeline must meet a predetermined social and community metric before token distribution.
As an incubator, we understand the importance of quality communities for token distribution. Our launching evaluation criteria include social and community metrics, meaning that a specific index of project community will be set out for projects in the pipeline to achieve before exchange listings.
Solanium will provide projects in the pipeline with key connections, marketing support, and advisory in order to map out the best possible go-to-market strategy.
3/ We will require projects to submit a post-launch marketing plan
Marketing is essential in driving eyeballs to projects, which translates to community growth. Solanium requires launched projects to continue effective marketing campaigns to produce results.
We will be monitoring post-launch project activities to ensure marketing is done properly, and advice will be given where needed.
Even though we constructed Solanium Shield for ultimate user protection, we also guarantee that it will not compromise project confidence and benefits in launching token sales.
In the upcoming months, new standards might be added on top of Solanium Shield, but a balance of benefits should be established for both investors and project teams.
Keep on Building
As a launchpad, we have learnt and received tons of amazing feedback from the community. We will continue building for years to come and bring the best experience to our community. Potentially looking to expand to other chains as well.