The start of IGO at ZKFair: A Revolution in Truthful Launch

by BitriseCapital

Revealed: January 12, 2024 at 7:48 am Up to date: January 12, 2024 at 7:48 am

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In Transient

The primary EVM-compatible Layer 2 (L2) platform based mostly on Polygon’s CDK and the Celestia database, ZKFair launched a 48-hour Truthful Launch occasion.

ZKF Truthful Launch

Within the present Ethereum ecosystem, zk-rollup know-how is widely known for its important benefits in community scalability and lowering transaction prices. This know-how, by bundling a lot of transactions and processing them off-chain, vastly enhances community throughput whereas lowering transaction charges for customers, making blockchain know-how extra sensible and economical.

Towards this backdrop, the primary EVM-compatible Layer 2 (L2) platform based mostly on Polygon’s CDK and the Celestia database, ZKFair, launched a 48-hour Truthful Launch occasion on Christmas Eve 2023. The aim of this occasion was to problem its new token, ZKF. ZKFair plans to problem a complete of 10 billion ZKF tokens. Members can qualify for airdrops by transferring on the ZKF chain and consuming gasoline. This mechanism ensures the equity of token distribution, because the variety of tokens acquired is proportional to the quantity of gasoline spent. Moreover, 25% of the ZKF tokens might be airdropped to neighborhood members who’ve contributed, whereas the remaining 75% might be pretty distributed among the many individuals of this Truthful Launch occasion.。

Token Distribution

• Standard Token Issuance

Standard token issuance usually encompasses methodologies akin to personal gross sales, pre-mining, or public choices instantly executed by challenge entities to distribute tokens to buyers. This strategy could also be bereft of specific regulatory frameworks or processes, and infrequently operates with out the involvement of exchanges or different third-party platforms. It’d embody early-stage personal funding rounds, distribution of tokens to preliminary backers, growth groups, or advisory consultants. The transparency and safety related to this mode of issuance may be comparatively decrease, as it’s predominantly below the purview and management of the challenge initiators.

• Preliminary Coin Providing (ICO)

An ICO represents an early-stage token sale mechanism analogous to the Preliminary Public Providing (IPO) in standard finance. Inside an ICO, challenge initiators interact within the sale of newly minted tokens to the general public, predominantly as a fundraising enterprise for challenge growth and operational bills. The intent behind buyers’ acquisition of those tokens is commonly anchored within the anticipation of future market worth appreciation. ICOs catalyzed the bullish market pattern between 2017 and 2018, however their popularity was subsequently marred by regulatory complexities and fraudulent actions by sure challenge entities, resulting in a decline of their utilization.

• Preliminary Trade Providing (IEO)

An IEO is a token issuance format facilitated by cryptocurrency exchanges. On this framework, exchanges undertake due diligence for token initiatives and supply a platform for token gross sales. Traders are required to register accounts on these exchanges to buy new tokens. IEOs are sometimes perceived as safer in comparison with ICOs, with the involvement of exchanges offering a layer of belief and validation for buyers.

• Preliminary DEX Providing (IDO)

The IDO takes place on decentralized exchanges (DEXs), eschewing reliance on conventional centralized exchanges. As a substitute, token issuance and gross sales are carried out instantly through sensible contracts on DEXs. The IDO mannequin is characterised by enhanced transparency and decrease boundaries to entry, positioning it as a extra equitable and Web3-centric strategy to token distribution. IDOs facilitate speedy liquidity for challenge entities, as tokens change into tradeable on DEXs immediately upon launch. Nonetheless, in sensible utility, IDOs regularly function a supplementary issuance technique and don’t usually symbolize a considerable portion of whole issuance quantity.

IGO (Preliminary Fuel Providing）

This newest Truthful Launch by ZKFair might be thought of a revolution in token distribution. Its format doesn’t conform to any conventional fashions. Members obtain token airdrops proportionate to the gasoline burnt by their on-chain switch actions; the issuer, in flip, counts the gasoline paid by individuals as income from this token issuance. This represents innovation each within the guidelines of the airdrop and the fundraising format. After inner discussions, Bitrise Capital means that this new type of token issuance might be termed an Preliminary Fuel Providing (IGO), with the first traits of IGO summarized as follows:

The Truthful Launch of ZKFair demonstrates equity in its token issuance mechanism. The crux lies within the non-discriminatory nature of the mechanism: regardless of whether or not individuals are massive establishments or particular person buyers, so long as they carry out corresponding operations on the ZKFair chain throughout the occasion, they robotically qualify for the ZKF airdrop. Furthermore, the issuance course of for ZKF doesn’t set up a whitelist or pre-sale part, guaranteeing equal participation alternatives. Of the full 10 billion tokens, other than the two.5 billion allotted to neighborhood contributors, the remaining 7.5 billion are pretty distributed to all individuals through airdrop. Your complete issuance occasion is split into 4 phases, every lasting 12 hours, with the issuer setting a complete gasoline expenditure cap of three million USDC and a mean distribution of 1.875 billion ZKF, price 750,000 USDC, for every stage. If gasoline consumption exceeds the set quota of 750,000 USDC in any stage, the issuer calculates the airdrop quantity based mostly on the participant’s proportion of gasoline burnt in that stage. For the surplus gasoline spent, the issuer commits to a proportional refund post-event.

For instance, if a complete of 1 million USDC in gasoline is consumed within the first stage, participant A, who has spent 10,000 USDC on gasoline, would obtain roughly 18.75 million ZKF within the airdrop on the finish of the occasion, plus a 2,500 USDC refund. This mechanism ensures that common individuals should not edged out by massive capital gamers competing fiercely. On the similar time, by refunding the proportion of extra gasoline prices, this mechanism additionally addresses the difficulty of pointless gasoline burning in such airdrop actions. The design of the rule not solely displays considerate consideration for equity in gross sales but additionally demonstrates ZKFair’s dedication to fairness in motion.

Below the Preliminary Fuel Providing (IGO) framework, the position and motivation of individuals are distinct from conventional token issuance fashions. This modern issuance mechanism isn’t based mostly on direct monetary funding however on lively participation and contribution to the ecosystem. On this framework, individuals earn airdrop eligibility by their interactions and transaction actions on the ZKFair chain, which incorporates utilizing varied functions on the chain and thus consuming gasoline. This type of participation is nearer to client conduct, with customers actively participating by utilizing companies and functions throughout the ecosystem and, in return, receiving token airdrops as an extra reward.

This mannequin may be likened to conventional promotional enterprise actions. As an example, throughout a shopping center’s anniversary celebration, customers who spend a specific amount can obtain further presents. Right here, the mall (akin to the ZKFair ecosystem) affords an array of products and companies for customers to select from, with the presents akin to token airdrops acquired by customers for collaborating in ecosystem actions. This mannequin not solely encourages deeper involvement within the ecosystem however might also mitigate a few of the authorized dangers related to conventional token issuances, because it emphasizes participation and consumption over direct monetary funding.

Moreover, the design of the IGO mannequin additionally displays the blockchain and cryptocurrency sectors’ emphasis on person participation, underscoring the event of a extra inclusive and dynamic ecosystem. This mannequin encourages customers to expertise and assist blockchain initiatives by precise use of functions and companies, thus selling the adoption and innovation of the know-how. In the long term, the IGO mannequin couldn’t solely present initiatives with a broader person base but additionally contribute to a extra lively and wholesome blockchain ecosystem.

Market Prosepct of IGO

Inscriptionhas performed an important position within the present bull market, with its success stemming not simply from successfully addressing asset issuance within the BTC ecosystem, however extra so from its adoption of the “honest mint” precept, which has change into a key narrative for its success. The essence of this precept lies in creating a good and open market surroundings, pushed by a variety of retail buyers, guaranteeing participation alternatives for everybody. The openness and inclusivity of this market surroundings is among the principal causes for the excessive market recognition of the Inscription.

Constructing on this, the emergence of the Preliminary Fuel Providing (IGO) is profitable adaptation of the core ideas of the Inscription challenge. The IGO emphasizes openness within the early phases of the challenge, permitting a broader vary of odd buyers to take part. This not solely enhances the challenge’s attraction and visibility but additionally successfully meets the funding wants of the challenge initiators whereas delivering substantial returns to actively collaborating customers. The design of IGO balances flexibility and common applicability, making it extensively relevant to numerous Layer 1 (L1) and Layer 2 (L2) blockchain networks.

Each the Inscription and IGO replicate the present cryptocurrency market’s excessive regard for innovation and equity. They provide new alternatives for individuals and drive the wholesome growth of your entire blockchain ecosystem. With the applying and growth of those fashions, we’ve purpose to imagine that they may proceed to have a profound impression within the cryptocurrency subject, stimulating market vitality and fostering extra consideration and exercise in public blockchains. Simply because the Inscription challenge has introduced important breakthroughs to the BTC ecosystem, IGO can also be poised to spark a collection of recent improvements and tendencies within the crypto.

Establishment Feedback

iZUMI Jimmy：

“ZKFair is the primary Ethereum Layer 2 modular blockchain to launch with a good IGO mannequin. In our collaboration with ZKFair, we worth the crew’s long-term technical power and, extra importantly, their dedication to a community-centric, user-friendly strategy with low valuation, and a clear and honest modern token distribution mannequin. As a multi-chain protocol and one in all ZKFair’s earliest ecosystem supporters, iZUMi seems to be ahead to extra public chain companions drawing on ZKFair’s profitable expertise. In 2023, iZUMi additionally launched the iZUMi Layer2 Fund to supply ample on-chain liquidity for our collaborating public chains.”

Bitrise Capital Kevin：

“ZKFair is a latest challenge that has been very profitable and attracted a variety of consideration. I contemplate its case to be of textbook caliber. I see it as an innovation and try to outline this new token issuance methodology as IGO. From this challenge, we observe that innovation in Web3 can stem from self-driven, grassroots neighborhood initiatives. It jogs my memory of the time period ‘self-financing.’ In ZKFair’s case, we see breakthroughs not simply in enterprise fashions but additionally a powerful emphasis on de-financialization. The IGO mannequin presents a brand new manner of launching initiatives, firming down the monetary side. It’s like procuring at a grocery store; you pay for and obtain primary companies, after which the grocery store rewards you with coupon. For a challenge’s chilly begin, this not solely attracts customers but additionally solves early-stage funding points. After all, ZKFair’s financial mannequin nonetheless has room for enchancment, however I’m very optimistic concerning the ZKFair crew’s skill to self-iterate, particularly in shortly adjusting to market adjustments throughout challenge launch.”

Lumoz Alvaro：

“Lumoz is devoted to creating and selling superior functions of blockchain know-how. Our collaboration with ZKFair, a Layer-2 answer based mostly on ZK-Rollup know-how, integrates Polygon’s Widespread Improvement Package (CDK) and Celestia’s Knowledge Availability Layer (DA), aiming to boost transaction processing effectivity whereas sustaining full compatibility with the Ethereum Digital Machine (EVM). ZKFair has chosen the USDC stablecoin for transaction payment funds to scale back community congestion and enhance transaction velocity. Moreover, ZKFair’s architectural design helps a decentralized community of provers, reflecting our dedication to community autonomy and sustainable growth. This decentralized construction is meant to extend community participation and obtain extra clear and honest operations by a neighborhood governance mannequin.

The launch of Truthful-L2 LaunchBase marks a major step by Lumoz in supporting rising ZK-L2 initiatives. This platform is designed to supply essential technical assist for upcoming new initiatives, facilitating their clean launch. Our collaboration with Polygon additionally leverages the advantages of ZK-Rollup to boost transaction effectivity and community safety.”

About Bitrise Capital

Bitrise Capital is a enterprise capital agency specializing within the blockchain sector, primarily investing in digital foreign money infrastructure (infra) and mining (depin) associated fields, having invested in over 100 blockchain initiatives up to now. Bitrise Capital goals to supply safe and dependable decentralized monetary companies, providing asset administration and connecting to numerous scorching trade tracks akin to DeFi ecology, NFT ecology, and Web3 gaming ecology. It serves over 50 establishments throughout a number of nations, managing an collected whole of over $100 million in mainstream encrypted digital property. At Bitrise Capital, shoppers can expertise quite a lot of major asset buying and selling methods and delve into a number of massive DeFi initiatives, providing companies like liquidity mining for asset appreciation, thus safeguarding the consumer expertise in decentralized monetary initiatives. With years of deep trade involvement, Bitrise Capital has amassed intensive sensible expertise within the blockchain trade and mining (depin) sector.

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