Avalaunch — Not just another launchpad…
Nothing in this guide constitutes financial advice. Before investing in anything let alone crypto you should seek the advice of an investment professional.
Disclaimer: I am personally invested in Avalaunch.
Blockchain and cryptocurrency have always been attached to both decentralisation and permissionless activities, even if not every project since the creation of Bitcoin has lived up to this feature stack. The broader implications are hidden within these features of decentralisation and P2P operations — the implication that like minded individuals can come together under a common interest in the name of financial technology.
One way people like to band together is through fundraising. The act of fundraising is a means of like-minds making a call to action to achieve a goal among themselves or for others. This can take many forms — perhaps a Go-Fund me page or something similar — but this also applies directly to the area of technology startups. In crypto specifically, this focuses on projects that are ready to launch or may have gone live already, but need fundraising and would equally like members of the public to have access to their early stages of growth.
This is where Avalaunch comes into play.
In a nutshell, Avalaunch is a fundraising launchpad exclusively for projects being built and deployed on the Avalanche network and created to enable users a true and fair fundraising experience.
Synopsis of Avalaunch
Avalaunch is the first fundraising platform exclusive to the Avalanche blockchain. The project creates interoperability optimised token pools along with blockchain integrated auctions. The concept for Avalaunch is very simple — they provide a simple yet unique and eloquent fundraising experience for projects that wish to launch an Avalanche network compatible token with security and speed. For those unaware, The Avalanche network has some of the fastest and cheapest network functions which as a result make it easy to focus on innovation. Avalaunch has many features including interoperability swap pools, permissionless listings, fair distributions, vesting opportunities, contract and investor protection tools, and much more that I’ll go into next..
Additionally, Avalaunch is backed by the $XAVA token which is utilised in many different ways, with one being its incredibly attractive staking function.
In this guide I’m going to focus on:
- What makes Avalaunch unique
- What kind of value does Avalaunch bring to both AVAX and the blockchain ecosystem
- The extra elements that make Avalaunch really shine
- Its broader applications for long term growth
- The ‘tokenmomics’
- Current and future updates planned for Avalaunch
So, let’s dive in.
The Unique Value of Avalaunch
As mentioned, Avalaunch is the first protocol on the Avalanche platform that is designed to be a launchpad and fundraising hub for pre-public projects and their tokens. That being said, there is so much more to Avalaunch than this fundamental feature. If the goal was to make only a launchpad, then a project like that would by now have already been overtaken by projects of a similar ilk . You only have to look at the number of launchpads supporting platforms like Solana and Polkadot. Avalaunch knew that they needed to raise the bar quickly, not just because of potential competition, but mainly because in order to stand out, they needed to address the issues around a lack of fairness, security, and integrity from other launchpads.
Many current fundraising platforms are not quite as decentralised as you’d imagine, bringing things like favouritism in to play. Additionally, some platforms are slow, confusing and often expensive. Avalaunch has really placed these elements at the forefront of their solutions, bringing a fast and easy experience with the low fees associated with the AVAX network. Avalaunch also knows that fairness not only needs to be achieved but, prioritised so that everyone is given the same opportunity. Knowing that they are on a fast and lower cost network, Avalaunch can focus on the actual features that matter.
Avalaunch Features and Process
As great as Avalaunch already sounds, there is much more going on for both the broader application of what makes it a quality project and the operational features that attract a fair distribution of users. Avalaunch is equally built for investors, builders, and communities alike, not favouring one over the other and highlighting the strengths of each part of the fundraising process.
Here are some of the features of Avalaunch that make the platform open to all types of participants in the fundraising process:
- Fair and Equitable Fundraising: the only requirements for participating in the sales portion of the Avalaunch platform is completing registration and KYC requirements, along with verifying the correct receiving wallet you’d prefer to use. This process helps ensure that it is fair and not based on favouritism whilst making sure there are as few bad actors as possible.
- Vesting and Distribution: users of the platform can stake $XAVA (more on the Avalaunch native token shortly) in order to gain a distribution automatically by projects listed on the platform.
And soon to come…
- Interoperable Swap Pools: Avalaunch is built with the appropriate liquidity to manage both the interest and capacity of fundraising. It’s never a great thing when trying to raise money for projects and the users cannot get a fair exchange due to a lack of liquidity. Having interoperable swap pools help engage communities without this issue.
- Permissionless Listing: No fancy or challenging requirements to list the projects on the platform.
It’s this broad set of features that allows all investors, builders, and retail participants to follow through with the ethos that Avalaunch has set out for the overall lifeblood of the ecosystem, primarily that:
- $XAVA holders receive allocation for for doing due diligence in making Avalaunch a liquid platform.
- All $XAVA holders help with the overall integrity of the platform, regardless of the size of their involvement or eligibility of each project on the launchpad.
- Long term participation and community building in the $XAVA ecosystem.
- No negative contributions to the network — no tiered systems, whitelists, or minimum allocations that prevent participation or unfair benefits.
Sales on the Avalaunch platform are composed of three different rounds — a validator round, a community round, and a public round.
- Validator Round: this is open exclusively to Avalaunch validators on the platform aka the main users. This is the first sale on each project round and makes up the first 10% of available tokens that a project lists via Avalaunch.
- Community Round: this is the main round and one that takes up the most allocation of the three sales rounds. In this round, 85% of a project’s token availability is up for purchase. This is available for all users of the Avalaunch platform that have a minimum stake in $XAVA tokens.
- Public Round: this is the final round, making up 5% of tokens that are available and require users to only be community members regardless if they are staking $XAVA tokens or not.
$XAVA — The Avalaunch Token
As already mentioned, the token for Avalaunch is called XAVA, which serves as the localised utility of the Avalaunch platform. There are two major utilities for the $XAVA token:
- Allocation Staking, or Single-Sided Staking.
- Farming Application, also known as Liquidity Provision.
Each of these two utilities have a major function on the platform that help the overall operation and efficiency for proper fundraising to occur. Let’s go over both of these in some detail and highlight how they impact the user experience and overall functionality of Avalaunch.
- Allocation Staking: this style of utility takes the form of staking, where a user can hold a certain amount of XAVA tokens and gain more tokens for doing so. This is also called “single-sided” staking because there is no permanent loss associated with this type of staking. Users, by staking like this can gain rewards in a variety of ways including: allocation into IDOs (which is optional to participate in), ecosystem rewards, deposit fees, allocation fees etc.
The deposit fee is a one time fee when a user stakes $XAVA which is fixed at 2% to prevent abuse to the system. The allocation fee, also at 2%, is charged when you claim your rewards. Additionally, users can also have what’s called a “staking weight”. This means that the longer you stake $XAVA on the platform, the higher the return you will receive.
- Farming Application: otherwise known in its more common name of Liquidity Provisioning. Users of Avalaunch will be able to farm $XAVA tokens by adding them to pools that help maintain the flow of fundraising on the platform. In many ways this is similar to staking but in a much more streamlined way and with a higher emphasis on pool rewards. Users that use their $XAVA tokens directly for farming have a 66% split in the reward pools.
Avalaunch is making key strides on the Avalanche network by addressing how fundraising should work whilst engaging communities. Fundraising should be fair, easy to use, cost efficient and beneficial for the projects listed on the platform. Avalaunch has found a way to offer something much faster and cheaper than most launchpads on other blockchains, while having fair distributions along with extra benefits like staking that support the platform and its ecosystem as a whole.
Avalaunch is THE game changer for next generation blockchain based fundraising.
Likes, Claps and Shares all welcome.