A decentralized venture capital organization is overhauling its oversubscribed IDO launchpad, betting that a point system will build a fairer token sale platform.
DuckDAO’s core open-to-all approach to early-stage investing was running into a common problem stymieing initial token sales held on decentralized exchanges (DEXs): There’s such a thing as too open, at least when it comes to IDOs.
Once initial DEX offerings (IDOs) proved to be a viable and less expensive alternative to the initial exchange offerings (IEOs) run by centralized exchanges — which offer expert assistance, marketing solutions, and the credibility of trustworthy vetting in exchange for a very large fee — smaller crypto firms and would-be investors piled in.
IDO launchpads like DuckDAO’s DuckSTARTER grew out of the need to replicate some of those IEO services at a much more reasonable cost. But like other launchpads, DuckSTARTER soon found itself more overrun than oversubscribed when it came to popular IDOs. Buying limits, a first-come, first-served system, lotteries and requiring buyers to lock in its native DUCK tokens hasn’t been enough.
By the numbers
Calling the increasingly popular, retail-investor-focused IDOs the “future of fundraising,” DuckDAO co-founder Lukas Ziegler revealed that “competition has made securing an allocation challenging for investors.”
With the new point system and refundable IDO features, Lukas said, “we’re hoping to change that” by making DuckSTARTERS’ IDOs “both fairer and more forgiving.”
While it is still being fine-tuned, DuckSTARTER’s goal “to ensure that users that failed to secure a slot in one IDO, will have a greater chance of landing the next, and so on, by assigning points for each failed IDO.”
After several losses in a row, users “will eventually earn themselves a near-guaranteed slot in a later IDO,” DuckSTARTER said.
That’s important to DuckDAO, which is committed to providing…
