Pozzlenaut NFTs — Changing how Protocols Launch
NFTs for Protocol launches: Pozzle Planet’s innovations with fundraising and protocol launch
Throughout the history of protocol launches there has always been difficulties with solving a few aspects of the token launch, from distribution to pricing, lockups and vesting. At Pozzle Planet we were looking for solutions. Not only to care for the community, but to also care for those early investors that can help us in the beginning. For this, the Pozzlenaut NFT launch was born. In this article, we will break down how the launch will work and why this changes how launches can work in the future.
First stage: The launch of ‘Pozzlenaut NFTs’:
Information one how to participate in this phase can be found here.
Our focus today will be on how this fundraising strategy changes ICOs and protocol launches. In summary, the first stage of funding consists of 22 NFT auctions. The earlier you participate the better conditions you receive, however, given that this is an auction process there can be 2 outcomes: 1) you participate in an early auction and you get a great deal, or 2) you outbid someone else, and again get a better deal.
In the below image we can see a breakdown of how price increases with every completed auction, but also on how your APR returns are higher the earlier you participate in the auction process.
The Pozzlenaut NFT sales come with the following terms:
Buyers of a Pozzlenaut NFT receive a ‘$POZ Power Pack’, which is an amount of $POZ tokens based on the purchase price of the Pozzlenaut NFT in ETH.
- $POZ ‘Power Pack’: Receive $POZ at an initial price of 1 ETH = 1000 $POZ for the first Pozzlenaut NFT sale
- Pricing: ETH to $POZ conversion price increases 1.5% for each Pozzlenaut NFT sale thereafter
- Vesting: Receive $POZ via smart contract with 24 months linear vesting + 3 month cliff
- Staking: $POZ is auto-staked
- Yield: Exclusive pre-protocol APR%
- Utility: Additional utility of the NFT
But what if I want liquidity, how can I get my money if my investment is locked?
We got you, we know in crypto there are many unknown unknowns and with that you might be looking for sudden liquidity. For that reason, we have made the Pozzlenaut NFTs liquid.
Your $POZ tokens are tied to your Pozzlenaut NFTs for the duration of the lock, and even though you cannot sell your $POZ (or a fraction of it) at market, you can sell your Pozzlenaut and with it the $POZ tied to it from the initial investment that was made.
So let’s address the common fears many investors have when approaching a new protocol launch and how we’ve worked on solving these problems.
Distribution & Lockups
Below we can see how the distribution is highly focused on the community, but even beyond that high focus on fair distribution, we also care for the early investors by limiting dilution through our special “mining” of the tokens. In short, Tokens are not minted (mined) unless there is participation from the community. This means distribution is highly correlated to the demand for the token. If there is little demand in the beginning, then there will be very little dilution.
Let’s take an example scenario:
Assuming a conservative user growth for the mobile-app to 100k MAU/30k DAU (Monthly/Daily Active Users) in the first 12 months, then the amount of $POZ mined during that 12 months might only be in the range of around 275k $POZ*. This is less than half of the 600k $POZ allocation for Pozzlenaut NFT Pre-sales. The aforementioned 275k is also then distributed into buckets, where 55% will go to the Treasury and can be potentially accessed by investors through limited Bonding releases. (*Example only: Protocol mining is still in development and final mining rates could change up to the point of GO LIVE).
Then looking further along as the mobile-app continues on an exponential user growth curve, the amount of $POZ mined increases in strong correlation. Once the protocol achieves its goal of 15million users onboarded to the mobile-app by the end of 2024, the amount of $POZ mined could be up to 47m $POZ, out of which the “Miners” (mobile-app users earning $POZ through ‘impact-2-earn’) would have taken their slice of around 14m $POZ (30% of mined POZ).
The total amount of $POZ tokens that will ever exist is 1 billion, however, the distribution schedule will depend highly on the adoption of the app.
Furthermore, the Founding Team and Fundraising sections are locked and vested as we can see below:
This ensures that by the time those initial tokens are unlocked, the community will most likely have controlling power. That said, the protocol will look to have a Bootswap event where funds will go directly to the Protocol Owned Liquidity pools to guarantee liquidity in the trading pairs for the future.
Now that we understand the distribution and lockups, it is important to highlight the importance of the Pozzlenaut NFTs in this process as they represent a large part of the fundraising split. Pozzlenaut NFTs are in a sense, liquid forms representing your initial investment. If you so choose to sell your Pozzlenaut before the lockup ends, then your $POZ tokens that are tied to that Pozzlenaut will move to the new owner of the Pozzlenaut. This represents a new solution not only for early investments but for NFT use cases in the crypto space.
In an attempt to change how ICOs have hurt investors and how token unlocks have hurt communities, Pozzle Planet has devised a plan to cater to everyone in the best way possible. These launching mechanics not only limit how much whales can gain ahead of the community, but also provide ways for these big players to have liquidity before their tokens unlock.
As the protocol moves into the fundraising rounds it is also important to highlight how much of the funding is actually going towards protocol-owned liquidity, to ensure liquidity and not require mercenary money to incentivise the pools, as well as how the treasury will look to take over liquidity pools for impact tokens that exist: Firstly with the proposed bonds for BCT LPs and NCT LPs. (More info on how the Treasury works here.)
If you have any questions please join the Discord so we can help answer them in the best way possible.