4. Setting up a Token sale
Participants have multiple options to conduct a token sale. Once the sale is completed the SAFU minter will automatically mint tokens.
Types of token sales:
Standard ICO:
Standard ICO uses the standard model that was first proposed by vitalik in 2016. Owners define a softcap (minimum raise) and a hardcap (maximum raise). If total contributions do not exceed the softcap then the funds are automatically returned to the contributors. Once the hardcap is reached the sale will close.
Fusion Token Sale:
A fusion sale is a sale in which the owner defines the maximum and minimum cap. Participants can contribute to the sale until the time is over. If the maximum cap is reached the sale will not close but continue to fill, however once the sale is finished all excess funds are returned to the contributors and allocations are cut proportionally to all participants.
Whitelist offerings:
A whitelist offering allows the project owner to whitelist the contribution participants to the sale. Only the wallet owners that are on the whitelist can contribute to the sale.
Fair Launch Offering:
In a Fair Launch every contribution increases the price of the token just like a DEX. The difference is that people cannot sell their tokens until the token is listed. The project owner can set a softcap that needs to be reached for the token sale to go through and a sale duration period. See more Setting up the Token Sale
Token Offering Metrics:
Price Per Token: Price that the token will be sold to on SAFU.io Launchpad. If the creator chooses Fair launch then the token price will increase with every new purchase.
Listing Price:
Price that the token will be listed on DEXs. The listing price is a a product of liquidity collateral and token collateral. If the creator selects price equal to its listing price then the protocol will mint 70% additional tokens to cover the 70% liquidity collateral, resulting in a price of 1x.
At a listing price of 1x the maximum loss for the last person to sell their tokens is -73%, representing the worst case scenario in which nobody buys the tokens and all participants sell the token.
Example:
Listing Price: 0.1 BUSD
Offering Price: 0.1 BUSD
Total Raise: 100,000 BUSD
Total Purchased tokens = 1.000,000 SAMPL
SAFU protocol will mint additional 700,000 SAMPL as token collateral and pair these with 70,000 BUSD and automatically lock them into SAFU DEX.
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