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Community Fairlaunch
How Canvaisland will launch its CANVA token and how you will be able to be the first one to purchase it.
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The Community Fairlaunch is there to give community members who believe in Canvaisland long-term mission "make GameFi accessible for everyone" a stress-free way to participate in the Fairlaunch.
With over 10’000 people anticipating the Canvaisland Launch to turn a possible bear GameFi market into a special opportunity, we had a tough problem to solve: How do we launch the $CANVA 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
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For CANVA Token Launch we wanted to do something different. What we will do now with the CANVA 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 ETH in this pool in a period of three days, starting on the 28th of July.
At the end of the deposit period, the 31th of July, the proportion of the entire pool is calculated so we know exactly who invested how much (%) ETH into the pool.
At the official platform and token launch on the 1st of August on Uniswap, 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 Uniswap. Now the token has officially launched. The price now is referred to as "Listing Price".
- 2.buy CANVA: In the same transaction, ETH from the deposit pool are used to buy CANVA on the open market (Uniswap), thus driving the price up instantly. The price now is referred to as "New Price".
- 3.add additional Liquidity: Lastly, the remaining ETH in the deposit pool are used to add liquidity on Uniswap 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 Uniswap.
After this sequence of events, it is calculated who in the deposit pool bought which amount of CANVA. Everyone in this pool will have bought CANVA 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 ETH used to “buy CANVA” and “add additional liquidity” we ensured that the "Your Price" will be ½ of the “New Price”.
Community Fairlaunch
Those acquired CANVAs are then distributed to the investor gradually in a linear manner over the course of one month. Claim will be available the day after Uniswap listings (2nd of August) linear 3% every day.
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 2x 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.
You have to claim it on the Claim Page of canvaisland.com or on etherscan. Because you have to pay gas fees every time you “claim”, we don’t recommend claiming your rewards multiple times a day.
The CANVA tokens will be distributed 3% every day and will be available to claim.
No Financial Advice. You can of course sell them right away or you can be a smart Canva holder and stake them in the Canva staking pool and mulitply your CANVA Tokens. The first Months after launch is called the “Distribution Phase”. Because of high staking APRs it is easy to accumulate many CANVA tokens . After that phase, minting of new CANVA will be greatly decreased and CANVA 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 ETH 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 ETH to buy CANVA, the price jumps to the "New Price". On decentralized exchanges Uniswap the price is calculated by the "Constant Product Formula".