How Grizzly will launch its GHNY token and how you will be able to be the first one to purchase it.
The Community Fairlaunch is there to give community members who believe in Grizzly's long-term mission "make DeFi accessible for everyone" a stress-free way to participate in the Fairlaunch on Pancakeswap.
Those looking for the quick 3x, 5x or 20x should rather choose another project.
With over 50’000 people anticipating the Grizzly Launch to turn a possible bear market into a special opportunity, we had a tough problem to solve: How do we launch the Grizzly Honey Token so everyone gets a head start, a fair price and dont have the stress about to buy in the perfect moment but can do this in a relaxed and easy way.
What projects usually decide between is a Token Pre-Sale or a Fair Launch.
- With a classic Pre-Sale, the community gets to buy the token at a fixed valuation - below the launch price. This usually leads to a huge selloff and dump right at time of launch. Furthermore, it is hard to pre-define an appropriate valuation.
- With a classic Fairlaunch, you just launch the token at a really low valuation, and let the community pump its price in a “first come, first serve” manner thus letting the market decide the real value. A huge price spike draws the attention of new users and is somewhat free marketing. However, what usually happens with a classic Fair Launch is that Sniperbots intervene. Sniper Bots are special bots that can buy much faster than a regular user. On the first second, a sniper bot buys a large proportion of the available tokens, pumps its price and then sells the bought tokens to the community at a much higher price. So it's not only that you might lose money, you are also stressed while trying to buy at a perfect moment.
For the Grizzly Honey Token Launch we wanted to do something different. What we will do now with the GHNY token launch, is a mix between the two. We combine the best of both worlds.
The Community Fairlaunch can be pictured as a giant public sniper bot / deposit pool. Investors can deposit their BNBs in this pool in a period of three days, starting on the 4th of August.
At the end of the deposit period, the 7th of August, the proportion of the entire pool is calculated so we know exactly who invested how much (%) BNB into the pool.
At the official platform and token launch on the 8th of August, the following 3 actions are performed by the "public sniper bot" in the same transaction:
- 1.add initial Liquidity: As the first step of the sequence, Liquidity is added to PancakeSwap. Now the token has officially launched. The price now is referred to as "Listing Price".
- 2.buy GHNY: In the same transaction, BNBs from the deposit pool are used to buy GHNY on the open market (Pancakeswap), thus driving the price up instantly. The price now is referred to as "New Price".
- 3.add additional Liquidity: Lastly, the remaining BNBs in the deposit pool are used to add liquidity on pancakeswap again which decreases volatility. This liquidity is now permanently owned by the protocol. This is called "protocol owned liquidity" and ensures a constant level of liquidity and a more stable price. From now on, the token can be traded on pancakeswap.
After this sequence of events, it is calculated who in the deposit pool bought which amount of GHNYs. Everyone in this pool will have bought GHNYs at the exact same Average Price. No matter if it's a little fish or a big whale - it's the same price for everyone. Through a calculated proportion of the BNBs used to “buy GHNY” and “add additional liquidity” we ensured that the "Your Price" will be ⅓ of the “New Price”.
Those acquired GHNYs are then distributed to the investor gradually in a linear manner over the course of one month. After a day, about 3% of the tokens are distributed, after a week roughly 25%, after 2 weeks 50% and after one month 100% will have been distributed to all participants.
Because the tokens are not released all at once or in different batches, we will not have shifted the race from “who can buy the quickest” to “who can sell the quickest”. The linear distribution mechanism allows for a dynamic and natural price discovery.
- Stress-free. The deposit pool of the Community Fairlaunch is open for 3 days.
- Completely fair and equal. Everyone from the community will get the same price.
- The new price, where everyone who didnt participate in the Community Fairlaunch will be able to buy, is exactly 3x higher than the average price of the participants.
- No sniper bots can buy before the community and then dump on them.
- No need to worry about slippage, gas fees or a fast internet connection.
Yes, your tokens are vested in the beginning and gradually released over the course of one month. After a day, about 3% of the tokens are distributed, after a week roughly 25%, after 2 weeks 50% and after one month 100% will have been distributed to all participants.
No Financial Advice. You can of course sell them right away or you can be a smart Grizzly and stake them in the Honeypot and mulitply your Honey Tokens. The first Months after launch is called the “Distribution Phase”. Because of high staking APRs it is easy to accumulate many GHNYs . After that phase, minting of new GHNYs will be greatly decreased and GHNY will become much more scarce while the use-cases and revenue-share machanisms increase. You will have to decide on your own if you are in this project short or long-term.
No it is not.
An initial coin offering (ICO) is the cryptocurrency industry’s equivalent of an initial public offering (IPO). A company seeking to raise money to create a new coin, app, or service can launch an ICO as a way to raise funds. Interested investors can buy into an initial coin offering to receive a new cryptocurrency token issued by the company. To do an ICO you need to do a KYC.
The key difference is that with an ICO, a sum of tokens are sold at a fixed valuation. The Community Fairlaunch is just a way to buy tokens on a decentralized exchange (pancakeswap). The tokens are bought from a so called “liquidity pool” - calculated with the Constant Product Formula. With more money in the Community Fairlaunch, the decentralized smart contract buys more tokens at a higher price (constant product formula). Furthermore, the BNBs raised stay in the protocol, while an ICO, as described above, is a way to raise funds.
Everybody in the Community Fairlaunch gets the same "Average Price" which is calculated the following:
Average Price = "Invested Sum" / "Number of bought tokens"
After the deposit pool has used its BNBs to buy GHNY, the price jumps to the "New Price". On decentralized exchanges like pancakeswap the price is calculated by the "Constant Product Formula".
For a high investment sum of 10 Million Dollar in BNB, the GHNY price would skyrocket from $0,50 to $840,50. The Average Price would be $20,50. It wouldn't be a 3x but a 41x. Down below in the chapter "Protocol Owned Liquidity" it is explained why it would not be smart to let the token skyrocket this much but why it makes sense to cap it to a 3x.
No it is not guaranteed.
For the "New Price" to be 3x higher than the "Average Price", at least $500.000 worth of BNB would need to be collected in the deposit pool of the Community Fairlaunch. Furthermore, some short term oriented people will sell their GHNYs as soon as they can which could put the price below the 3x. Therefore the 3x is not guaranteed but just an expression that starting from a investment sum of $500k the "New Price" will start 3x higher than the "Average Price".
Why is some of the BNBs in the deposit pool used to add more liquidity instead of buying GHNY?
Let us address this with an example of $10.000.000 in the deposit pool. If we would use 100% of this money to buy GHNY after the initial liquidity of $250.000 (in BNB) <> 500.000 GHNY is added, the New Price would spike up to $840 with the Average Price being $20.
This would make the token extremely pricey and volatile. If 10% of the GHNYs acquired by the community would be sold again, the token would drop by 96% to $34.
In order to make the token more stable in price and ensure liquidity until eternity, we made a sophisticated calculation that determines how much BNB is used to “buy GHNY” and how much to “add additional Liquidity”.
With the same $10.000.000 in the deposit pool and our calculation, 29.22% would be used to buy the token while 70.78% would be used to buy add additional Liquidity. The New Price would "only" be $81 instead of $840 and the Average Price would be $27 (⅓ of the New Price).
Calculation: With Added Liquidity
The price decrease in a 10% selloff, has been reduced from 96% to 40%. This is still not little but it is has decreased volatility by a lot.
Why does a 10% selloff dump the price by 40% (or 96%) and not by just 10%?
Because the price volatility increases exponentially. Every token costs more than the previously bought one. If you want to learn more about how most decentralized Exchanges determine the price, we recommend searching for "Constant Product Formula".
You have more questions about the Community Fairlaunch or the Tokenomics? Text Leon on Telegram: https://t.me/grizzlyfi