TOKEN PRICE
Last updated
Last updated
The NEAR Genesis platform offers a dynamic pricing mechanism that responds to market demand, ensuring a fair and efficient token sale process. The price discovery mechanism is calculated by a few factors:
Base Price (set by the project team)
Softcap
Number of tokens available for sale.
The term 'Softcap' represents the minimum amount in USDT or NEAR that the project team aims to raise.
Softcap serves as a threshold that the project team considers crucial for the successful implementation or execution of their project. If the project fails to reach or exceed the Softcap, the Base Price remains unchanged from the price initially set during the registration phase.
However, if the project surpasses the Softcap and becomes oversubscribed due to increased demand, the Base Price of the token will be adjusted upwards to accommodate the higher level of interest.
Here's a slightly more visual representation of the price discovery factors:
The token Base Price is derived from this formula:
For example, if a project intends to raise $10,000 USDT and has 100,000 tokens for sale, then:
When a user starts depositing USDT into the sale, the approximate number of tokens they will receive is as follows:
Example: If a user deposits $1000 into the sale contract, the allocation would be:
However, once the softcap is reached. Price discovery starts. If more users deposit USDT, the base price will change based on the total amount raised.
Example: If the project intended to raise $10,000 USDT but the total amount raised is now $15,000 USDT:
In the event that the softcap is not reached, the base price will remain unchanged.
But this would also mean that there are unsold tokens.
Example: The project was only able to raise $8,000 USDT. At the defined base price, this would mean that 20,000 tokens remain unsold.
On NEAR Genesis, any unsold tokens are returned to the Project Owner.
