🔛Token Distribution
Typical Start-up IPO
Start-up IPO Token Distribution
Here's the breakdown of how tokens (shares) are allocated during a start-up IPO:
75% for Public Sale
12.5% as an incentive for Liquidity Providers over the next 4 years
12.5% to Protocol Owned Liquidity (initial liquidity, pre-minted)
Liquidity mining program
Upon the conclusion of the public sale, we initiate deposits for the start-up's Nitro Pool. All liquidity mining rewards are distributed in the form of additional start-up shares. These newly minted shares are created during the public sale process as treasury shares.
Depositors progressively earn start-up shares in a linear manner, an incentive program that spans 4 years.
No Team Allocation
The team of the start-up does not receive any tokenized shares. Instead, team members possess non-tokenized shares that are not tradeable. This strategic decision is intended to curtail token supply on the secondary market.
In the secondary market, participation is limited to those who engaged in the primary market (or their buyers) and liquidity miners. Team members do not participate in the secondary market.
Minting of New Token
By law, a company can create new shares, if certain requirements are met (shareholders resolution, granting of subscription right to existing shareholders, certain price requirements for the newly created shares). Every existing shareholder has the right to challenge this decision (Art. 706 Swiss Code of Obligations).
If new shares are created they first need to be offered for a fair price to existing shareholders (tokenholders). If shareholders don't exercise this subscription right, then these shares can be sold to new shareholders (at a fair price).
Last updated