The new project called PILOT, developed in collaboration with Kujira, is generating great enthusiasm. Its mechanism works in a completely unique way, and those familiar with ORCA will immediately recognize the similarity.
How It Works
The launcher sets the amount of tokens, the "base" price, the range of discounts, and the percentage intervals between them. Once the sale begins, participants place bids (auctions) to purchase tokens. They specify the price at which they bid and the amount they place in the auction. After the sales window closes, bids are accepted from the highest price. If all tokens for sale are allocated, unfulfilled bids with higher discounts are not filled. Bidders cancel unsuccessful bids and withdraw tokens they have successfully bid on.
Bids must be activated by the bidder after a standard delay (to deter bots) to meet the condition. Unactivated bids are not included in the sale.
If there are not enough tokens available at a certain price level to fulfill all bids, tokens are distributed proportionally based on the size of each bid relative to the total volume of bids at that price. The order of placement of bids is not a factor.
Example Sale
In one example, $10,000 worth of $DEMO is for sale. The price is USK 2.50 per DEMO with discounts of 5% for every additional 5%, up to a maximum discount of 50% off the price, or USK 1.25 per DEMO. The auction window is open for 48 hours. Let's take a look at how the sale went for one participant:
This individual had three bids. Two were successful with discounts of 5% and 25%, as indicated by the red dots. The third bid with a 40% discount was partially successful because tokens were allocated up to that level. Our bidder could potentially buy another 280 DEMO at a very attractive 40% discount if they activated the bid. They did not, as it is marked with a black dot. They currently have purchased 954.38 DEMO at a discount of 17.32%.
The sale was oversubscribed by almost 280%. While the DEMO sale sold at an average price of USK 1.76, it did not reach its target despite having bids worth $41,000.
Benefits
Dynamic pricing. The token price moves within a predefined range, giving the launcher easier predictability of outcomes and the investor the opportunity to decide and optimize their price point. Market sentiment determines the average value of the token; the distribution of bids shows demand and interest.
Investors choose their level of risk. Develop and execute complex strategies to increase ROI or simply participate in a straightforward manner. The buyer sets their risk tolerance and comfort.