Initial DEX offers (IDOs) have lately emerged as the preferred crowdfunding model for Web3 projects, allowing startups to launch their native token on decentralized exchanges and AMMs to seek funds in a method judged more reliable and transparent than prior iterations of crypto crowdfunding.
An initial DEX offering is when a project introduces a token via a decentralized liquidity exchange. A blockchain project uses an IDO to launch a coin on a DEX for the first time to attract funding from retail investors.
Platforms utilized for launching new project tokens are known as IDO launchpads. DAO Maker is one such launchpad having one of the most credible project listings.
This blog will restrict its discussion to DAO Maker, its terms and conditions, and all you need to launch your token at the DAO pad.
Table of Contents
What is DAO Maker?
DAO maker, created on the Ethereum network, is regarded as one of the most reliable IDO launchpads due to its endurance and excellent standards.
The platform was among the first to begin democratizing access to new projects through IDO-like incentives.
DAO Maker builds and invests in growth technologies, as well as sponsoring ecosystems that research solutions to decrease the risks of investing in crypto.
How does DAO Maker work?
The necessary condition for users to participate in a new project is to have a fixed number of DAO tokens in their accounts. Users must stake 500 DAO or more in the vaults of DAO Maker. For every DAO stake, users will gain one DAO power.
DAO power determines the user’s participation in the initial token sale, SEED sales, or dynamic coin offerings. Users that bid on DAO-USDC Uniswap LP tokens can treble their DAO power. Users can earn money by bidding on DAOs through the project’s token.
Users assign their DAO power depending on the sale they want to engage in. Consequently, they are then eligible to win an allotment in a lottery. A user’s odds of winning increase with the amount of DAO power they devote to a given sale. Users are divided into trenches depending on how much DAO they spend.
Per the official criteria, tranches are as follows:
- Tranche 1- 500–999 DAO Power
- Tranche 2- 1,000–1,999 DAO Power
- Tranche 3- 2,000–3,999 DAO Power
- Tranche 4- 4,000–9,999 DAO Power
- Tranche 5- >10,000 DAO Power
Every increase in level brings in a greater chance of winning for the participant.
If a person wins a participation slot, their DAO power will be locked for ten days until it resets, and their allotment will be automatically financed by their USD Coin (USDC) balance. Unsuccessful users will have immediate access to their DAO power.
Now, we know how an IDO works on a DAO Maker. Let’s get on to the launching of a new IDO.
Additional Resource: How Does Dao work?
How to launch an IDO on DAO Maker?
Heading on to the featuring topic of the blog, we will here discuss all the requirements a project needs to possess to put its IDO on DAO maker.
Step by Step instructions for an IDO launch on DAO Maker:
Note: Do not get confused between IDO and SHO; DAO Maker uses the term SHO(Strong holder offering) for a new token launch on its platform.
Here we will discuss every step involved in the onboarding process for DAO Maker’s SHO clients.
- Go to DAOmaker.com/launchpad and scroll down on the home page itself and apply for the launchpad.
- The following screen will appear, Click on Apply.
- Due Diligence: On applying you will be redirected to the DAO Maker’s questionnaire for a verified onboarding of clients.
- After you have filled out the questionnaire, DAO Maker’s team review begins, and the applications are reviewed on a weekly basis.
- Post review, the team reaches out to the companies that passed the initial screening process.
- Project founders will get on a call with DAO Maker’s lead analysts to examine if the project has a long-term intention to safeguard platform users.
- Crossing scrutinization via call will lead you to Token metrics evaluation, inflation model, and project’s fiscal planning. The team can recommend some changes to enhance the project’s sustainability.
- Upon reaching an agreement on the token metrics, the project gets an official acceptance to an SHO on DAO Maker.
Once your idea has been approved by the team, the next phase of launching an SHO is the contract process
- To maintain their credibility, DAO Maker asks the projects for the following documents.
- Legal opinion letters from the US, UK, or Singapore-based law firms indicate that the coin is not recognized as a security.
- The KYC & AML onboarding procedure for the company’s majority owners (>25%) is outlined in the legal opinion letter.
- Certificate of incorporation, Association’s articles, share and director’s registers of coin holding companies, filed no more than three months before submission.
- CEO, CFO, or COO signature on SHO contract.
- Private Sale SAFT for DAO Maker, to be a part of the project’s private sale, to safeguard the user’s interest.
- DAO Maker’s farms, to determine the duration of the marketing campaign via the number of client’s tokens deployed on the DAO platform(minimum 100,000 USD bimonthly).
- A mandatory token audit for the project’s token smart contract.
Getting on to the marketing phase of your project’s SHO, post-completion of all legal formalities.
- The most important document to cater to your customer base will be your research page on the DAO pad, which includes your project details, token metrics, token utility, a comprehensive infographic, and others.
- Post this comes the cap table optimization and confirmation of token metrics.
- DAO Maker requires its clients to have a certain market reach through social media states, influencers, etc.
- Based on the project’s awareness level and marketing power, pre-announcement marketing may take 1-3 weeks.
Finally comes liquidity planning, listings on exchanges, and public sale execution.
- DAO Maker offers a few chargeable services, including trading marketing, liquidity-mining consultancy, treasury management, management of the price-opening on exchanges, exchange mediation, and more.
- Smart contracts, known as vesting contracts, distribute tokens automatically in accordance with a specified vesting schedule. As a result, there won’t be any market-making issues or FUD from users fearing the team is dumping tokens. All tokens must be entered into vesting contracts before being listed on exchanges.
- Also, the platform offers a few additional services, including exchange introduction and management, campaign management, setting up liquidity pools on various other platforms, managing open volume liquidation, treasury management guidance, and others.
Additional Resource: Top 10 IDO Launchpad Projects on Web 3
DAO Maker is regarded as the premier platform of its sort. It is well-designed and utilizes user-friendly tools. High project completion rates on DAO Maker serve as confirmation of this. Moreover, there is a mandatory web3 audit requirement, which enhances investors’ trust in the projects.
Also, unlike other token launchpads, DAO Maker helps many of the projects it hosts increase their chances of success by offering a wide range of additional services(as discussed in the blog above(points: 14 and 16).
This article’s information is provided purely for educational purposes and is not intended to be financial advice. We suggest you get the advice of a financial expert if you decide to invest in the crypto market because they carry a high risk of loss. Do not forget that you invest at your own risk.