Understanding Fair Launch on Bunicorn Exchange

Dear BUNIans,

BUR Fair Launch is coming in five days on August 29. And it is the very first fair launch hosted on the Bunicorn DEX ever. Therefore, we are providing you with some key points that should be taken into consideration for an effortless experience throughout the event.

What is a Fair Launch?

A fair launch is a token distribution model with a long length of issuance for the sake of price discovery, and price equality - where there’s no discount. That’s to say, no Private sale, no VC, no staking to get IDO tickets, meaning no-one has a better price than you. Almost all projects that adopt the distribution model of Fair Launch share one main goal: to allow all participants to join the game following the same rules. In our case, everyone can buy BUR at a price they think it deserves other than fighting to buy it in a fake pump after an IDO listing of other tokens.

What is an Initial Liquidity Offering?

It means the main purpose of the token distribution is to raise the initial liquidity for the token. All of the liquidity raised during the event will be added to the AMM pool in Bunicorn Exchange right after the launch. The initial price of this new pool will be the last price determined by the fair launch’s price discovery phase.

If there is any tokens left after this phase, it will be burnt immediately and Bunicorn team will revoke our own permission to mint more token by ourselves. The only way BUR will be minted afterwards is via in-game reward payout.

What is Bunicorn Liquidity Bootstrapping Pool?

Liquidity Bootstrapping Pools (LBPs) — an approach introduced by Balancer on Ethereum to distribute a token while building deep liquidity. Bunicorn is among the first ones to adopt this model to Binance Smart Chain to help token teams have a better alternative to distribute their bep20 tokens to the community upon launching. To learn more about Bunicorn’s LBP, please deep dive into this article.

In a regular pool, two assets are matched in value 50:50. LBP is a special type of liquidity pool that adjusts pool weights over time to create constant downward pressure on the price. It enables teams to release a project token with high capital efficiency while at the same time building deep liquidity and eliminating the concern over unfair token distribution.

There are two competing forces for the price of the token in a LBP. The changing of the weights of the tokens will naturally push the price of the token down, since the weights start out with the token being worth the majority of the pool’s value, and end up at a much lower level. The other force is trading of the token. As people purchase the token, the price of the token increases. If a front-running bot immediately gets tokens when the pool is live, the price on Bunicorn will soon slump, holding less value than the acquisition price that the bot has paid after the weight change. Large buyers are incentivized to split their trades into a series of smaller tranches over a longer period of time to avoid driving the price up, making it easier for everybody else to participate.

What you will see is a gradual drop in token price, matched by periodic ‘bumps’ where the token goes back up. In theory, the price should eventually find some value that the overall market finds to be an accurate value for the token

Key Takeaways For The Sale

  • Do Your Own Research: Nothing in this document should be taken as financial advice. It only describes the mechanisms and parameters of the LBP.
  • No FOMO: The declining price mechanism of the LBP allows interested users to wait until they are comfortable with the price before acquiring tokens. No need to rush.
  • Bots aren’t incentivized: Front-running or sniping transactions do not work due to the nature of the pool.
  • Price discovery: Similar to a Dutch auction, users will have a long time window to acquire tokens at a price they find attractive. Market forces will determine what the final valuation will be.

The graph above shows the price of a token compared to the starting price (as a percentage) in a situation where no purchases are made. This is to illustrate the downwards pressure on the spot price.

The graph above shows the price of a token compared to the starting price (as a percentage) in a situation where random purchases are made throughout the sale. This is to illustrate how purchases bump the price.

:pushpin: NOTE: This does not represent the actual price or direction of the token during the sale and is used for illustrative purposes only.

If you have any questions regarding the Fair Launch, kindly drop us a quick message on the Bunicorn Global Telegram Chat.

About Bunicorn

Bunicorn is an intense DEFI Game platform that elevates DEFI and blockchain gaming experience to the next level.

Within Bunicorn Ecosystem
— The Bunicorn RPG game is designed as a “Play to earn” model, while teleporting users to a magical “Bunicorn” world with exquisite NFT collectibles.
— Bunicorn exchange is a high-performance AMM DEX that offers investors yield-earning opportunities through liquidity pools and liquidity mining, with unique time-locked rewards wrapped into tradable NFTs.

Learn more about Bunicorn:

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