5. Minting Process

All purchased tokens are collateralised for 6 months

SAFU Protocol

The collector contract opens a new offering on the SAFU Launchpad. Once the offering reaches its softcap, hardcap, or exceeds its funding timeline, the collector contract sends a signal to the minter. SAFU Protocol ensures that all tokens are collateralized to provide downside protection and liquidity to all token-sold tokens.

Token Minting Process

If the token creator defines a price of $0.1 BUSD per token and raises 100,000 BUSD then the minter will mint 1,000,000 tokens for distribution and up to 2,300,000 additional tokens for staking campaigns and DAO Treasury. These additional tokens cannot be sold into the market, as soon as they are minted these tokens are locked into the staking contracts and DAO treasury contracts.

Pre-minted Tokens:

Purchased Tokens

These are the tokens that users buy on the SAFU Launchpad. The protocol will only mint tokens that have been purchased. If the soft cap of a project is 100,000 BUSD and the offering collects 95,000 BUSD then all funds will be refunded and the token will not be minted.

If the offering collects 110,000 BUSD with an offering price of $1 per token then the minter will mint 110,000 SAMPL Tokens. If the hard cap of 200,000 BUSD was reached then the minter will create 200,000 SAMPL tokens.

Liquidity Collateral Tokens

Extending the example above, if the creator enters the same price for listing and offering then the minting contract will mint 140,000 additional SAMPL tokens. These 140,000 are then paired with 140,000 BUSD and placed into a liquidity lock.

Incentive Tokens

Creators can mint tokens for single asset staking and liquidity farm incentives. They can at most create 100% additional tokens of the softcap. Meaning if the offering softcap is 100,000 BUSD then the minter can at most create 100,000 additional tokens for the staking farm and 100,000 additional tokens for single asset staking.

These tokens are automatically locked into staking contracts and can only be unlocked via staking. The minimum staking time for a staking campaign is 60 days.

DAO Treasury Token

The DAO can have up to 30% of the soft cap token pre-minted at TGE. Extending the example from above would therefore mean that the DAO can have 30,000 SAMPL tokens or less.

No further tokens are created.