Evaluating Tokenization Launchpads: Key Factors to Consider for Success

Karolina

20 Jun 2023
Evaluating Tokenization Launchpads: Key Factors to Consider for Success

Blockchain technology's emergence has transformed our understanding and engagement with various sectors. A notable blockchain application is tokenization, which allows for the representation of real-world or digital assets as tokens on a blockchain. Tokenization has gained considerable momentum due to its ability to improve liquidity, enhance accessibility, and increase the efficiency of asset ownership and transfer.

Introduction

As tokenization thrives, a demand for dependable and effective platforms to launch tokenized assets has arisen. These platforms, referred to as tokenization launchpads, are critical in ensuring the successful issuance and distribution of tokens for different projects. They offer an all-encompassing infrastructure, technological assistance, and fundraising mechanisms that empower businesses and individuals to tokenize and introduce their assets securely and efficiently.

This article intends to examine the vital factors that individuals and companies should take into account when assessing tokenization launchpads. By grasping these crucial factors, potential token issuers can make well-founded decisions and enhance their likelihood of triumph in the tokenization process.

In this article, we will investigate the essential aspects of tokenization launchpads such as security and trustworthiness, technology and infrastructure, tokenomics and fundraising assistance, community and network influence, as well as track records and success stories. By evaluating these elements, individuals and companies can determine the appropriateness and dependability of tokenization launchpads, ultimately optimizing the chances of prosperous token launches.

Understanding Tokenization Launchpads

Tokenization launchpads are specialized platforms that provide a comprehensive ecosystem for token issuers to launch their projects and assets on the blockchain. These launchpads act as a bridge between project creators and investors, facilitating the tokenization process and ensuring a smooth and secure launch.

Purpose

Firstly, the purpose of tokenization launchpads is to simplify the complex process of token issuance and provide a range of services and features that streamline the entire launch process. These platforms typically offer a combination of technological infrastructure, smart contract templates, fundraising mechanisms, community support, and token distribution solutions.

Additionally, by utilizing a tokenization launchpad, project creators can leverage the existing infrastructure and expertise of the platform to tokenize their assets and raise funds through token sales. Moreover, launchpads often provide access to a pool of potential investors, thus increasing the visibility and reach of the project. Additionally, these platforms implement robust security measures to ensure the integrity of the token sale and protect participants from potential fraudulent activities.

Benefits

Tokenization launchpads offer several benefits to both token issuers and investors. For token issuers, launchpads provide a ready-to-use platform that simplifies the technical aspects of token creation, contract deployment, and distribution. They also offer various fundraising mechanisms, such as initial coin offerings (ICOs), initial DEX offerings (IDOs), and decentralized auctions, enabling project creators to raise capital efficiently and effectively.

Investors also benefit from tokenization launchpads by gaining access to a curated selection of vetted projects and investment opportunities. These launchpads often implement due diligence procedures to assess the quality, viability, and potential of the projects listed on their platform. As a result, investors can make more informed investment decisions and reduce the risks associated with participating in token sales.

Moreover, tokenization launchpads contribute to the overall growth and innovation of the blockchain ecosystem. Additionally, they foster collaboration, community engagement, and knowledge sharing among project creators, investors, and other stakeholders. By providing a platform for emerging projects, tokenization launchpads stimulate the development of new use cases, applications, and solutions built on blockchain technology.

In summary, tokenization launchpads play a pivotal role in the tokenization process by providing a comprehensive ecosystem that simplifies the issuance and distribution of tokens. These platforms offer technological infrastructure, fundraising mechanisms, community support, and security measures to ensure a successful and secure token launch. Moreover, by leveraging the services and features provided by tokenization launchpads, project creators and investors can harness the potential of blockchain-based tokenization for innovation and growth.

Key factors for evaluating tokenization launchpads

Security and Trust

Security is a critical factor to consider when evaluating tokenization launchpads. Token issuers and investors need assurance that their investments and assets are protected from potential threats and vulnerabilities. It is essential to thoroughly assess the launchpad's security measures and protocols. This includes evaluating whether the launchpad undergoes regular security audits conducted by reputable third-party firms. Audits help identify potential vulnerabilities in smart contracts and ensure the launchpad follows industry best practices for security. Additionally, examining the launchpad's code review processes, secure infrastructure, and adherence to strict security standards can further enhance confidence in the platform. Another important aspect is reputation. Researching the launchpad's track record and reputation in the industry can provide insights into its reliability and trustworthiness. Assessing user reviews and feedback, as well as the launchpad's history of successfully completed projects, can contribute to the evaluation process.

Technology and Infrastructure

The technology and infrastructure provided by a tokenization launchpad are crucial for the success of a token launch. Compatibility with different blockchain networks is a vital consideration. Assessing whether the launchpad supports popular blockchain platforms, such as Ethereum or Binance Smart Chain, ensures that the tokenized assets can benefit from the network's ecosystem and liquidity. Furthermore, evaluating the launchpad's ability to handle high volumes of transactions efficiently is important. Transaction speed and scalability are critical factors that impact the user experience and the ability to process a large number of token transactions. A launchpad that offers fast and scalable infrastructure ensures smooth token launches and reduces the risk of congestion or delays. Additionally, the availability of developer tools and smart contract templates can streamline the project creation process. Evaluating the launchpad's developer-friendly features, documentation, and support can provide valuable insights into the ease of building and customizing tokenized projects.

Tokenomics and Fundraising Support

Tokenomics refers to the economic model and distribution mechanisms of tokens. Evaluating the launchpad's tokenomics model is essential to understand how the token supply is structured, any token lock-up periods, and the distribution mechanism for token sales. A well-designed tokenomics model should align with the project's goals, provide incentives for token holders, and maintain a fair distribution of tokens. Furthermore, assessing the launchpad's fundraising support is crucial. This includes understanding the mechanisms available for token sales, such as initial coin offerings (ICOs), initial DEX offerings (IDOs), or decentralized auctions. The launchpad should provide clear guidelines and procedures for token sales, including KYC (Know Your Customer) requirements, compliance measures, and token sale terms. Additionally, the launchpad's ability to facilitate liquidity through features like liquidity pools or partnerships with decentralized exchanges (DEXs) can enhance the token's tradability and marketability.

What is tokenomics?

Community and Network Effect

The strength and engagement of a launchpad's community and its network effect play a significant role in the success of a token launch. A strong community can provide valuable support, feedback, and visibility for the project. Partnerships and collaborations with other projects and organizations within the blockchain ecosystem are also noteworthy. A launchpad that has established strategic alliances and ecosystem development initiatives demonstrates its ability to attract a broader network of stakeholders, including investors, developers, and influencers. Moreover, a vibrant and interconnected network can enhance the project's exposure, attract potential investors, and foster collaboration opportunities.

Track Record and Success Stories

Evaluating the launchpad's track record and success stories provides valuable insights into its past performance and the outcomes of previous token launches. Researching the launchpad's history of completed projects can shed light on the level of support and success achieved by token issuers using the platform. Factors to consider include the token price appreciation after launch, the project's performance in terms of development milestones and achievements, and the level of engagement from the launchpad's community. Additionally, analyzing feedback and reviews from past token issuers can provide insights into the launchpad's responsiveness, transparency, and overall user experience. Assessing success stories can help gauge the launchpad's ability to provide ongoing support to projects beyond the initial token sale and contribute to their long-term growth.

Careful consideration of these essential aspects enables token issuers to make thoughtfully informed decisions when choosing a suitable launchpad. Thorough research and due diligence are crucial to improve the chances of creating a positive experience for all participants in a token launch.

Nextrope Tokenization Launchpad Platform

Nextrope Launchpad Platform is a White Label solution in a Software-as-a-Service model that helps you launch your project within a month and fundraise with Initial Coin Offering (ICO) or Security Token Offering (STO).

Our platform allows you to participate in the broad financial market of digital assets. Expand your reach and find investors globally. Tokenize your project and start raising capital within a month!

Read more about Nextrope Tokenization Launchpad Platform and Contact Us!

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Aethir Tokenomics – Case Study

Kajetan Olas

22 Nov 2024
Aethir Tokenomics – Case Study

Authors of the contents are not affiliated to the reviewed project in any way and none of the information presented should be taken as financial advice.

In this article we analyze tokenomics of Aethir - a project providing on-demand cloud compute resources for the AI, Gaming, and virtualized compute sectors.
Aethir aims to aggregate enterprise-grade GPUs from multiple providers into a DePIN (Decentralized Physical Infrastructure Network). Its competitive edge comes from utlizing the GPUs for very specific use-cases, such as low-latency rendering for online games.
Due to decentralized nature of its infrastructure Aethir can meet the demands of online-gaming in any region. This is especially important for some gamer-abundant regions in Asia with underdeveloped cloud infrastructure that causes high latency ("lags").
We will analyze Aethir's tokenomics, give our opinion on what was done well, and provide specific recommendations on how to improve it.

Evaluation Summary

Aethir Tokenomics Structure

The total supply of ATH tokens is capped at 42 billion ATH. This fixed cap provides a predictable supply environment, and the complete emissions schedule is listed here. As of November 2024 there are approximately 5.2 Billion ATH in circulation. In a year from now (November 2025), the circulating supply will almost triple, and will amount to approximately 15 Billion ATH. By November 2028, today's circulating supply will be diluted by around 86%.

From an investor standpoint the rational decision would be to stake their tokens and hope for rewards that will balance the inflation. Currently the estimated APR for 3-year staking is 195% and for 4-year staking APR is 261%. The rewards are paid out weekly. Furthermore, stakers can expect to get additional rewards from partnered AI projects.

Staking Incentives

Rewards are calculated based on the staking duration and staked amount. These factors are equally important and they linearly influence weekly rewards. This means that someone who stakes 100 ATH for 2 weeks will have the same weekly rewards as someone who stakes 200 ATH for 1 week. This mechanism greatly emphasizes long-term holding. That's because holding a token makes sense only if you go for long-term staking. E.g. a whale staking $200k with 1 week lockup. will have the same weekly rewards as person staking $1k with 4 year lockup. Furthermore the ATH staking rewards are fixed and divided among stakers. Therefore Increase of user base is likely to come with decrease in rewards.
We believe the main weak-point of Aethirs staking is the lack of equivalency between rewards paid out to the users and value generated for the protocol as a result of staking.

Token Distribution

The token distribution of $ATH is well designed and comes with long vesting time-frames. 18-month cliff and 36-moths subsequent linear vesting is applied to team's allocation. This is higher than industry standard and is a sign of long-term commitment.

  • Checkers and Compute Providers: 50%
  • Ecosystem: 15%
  • Team: 12.5%
  • Investors: 11.5%
  • Airdrop: 6%
  • Advisors: 5%

Aethir's airdrop is divided into 3 phases to ensure that only loyal users get rewarded. This mechanism is very-well thought and we rate it highly. It fosters high community engagement within the first months of the project and sets the ground for potentially giving more-control to the DAO.

Governance and Community-Led Development

Aethir’s governance model promotes community-led decision-making in a very practical way. Instead of rushing with creation of a DAO for PR and marketing purposes Aethir is trying to make it the right way. They support projects building on their infrastructure and regularly share updates with their community in the most professional manner.

We believe Aethir would benefit from implementing reputation boosted voting. An example of such system is described here. The core assumption is to abandon the simplistic: 1 token = 1 vote and go towards: Votes = tokens * reputation_based_multiplication_factor.

In the attached example, reputation_based_multiplication_factor rises exponentially with the number of standard deviations above norm, with regard to user's rating. For compute compute providers at Aethir, user's rating could be replaced by provider's uptime.

Perspectives for the future

While it's important to analyze aspects such as supply-side tokenomics, or governance, we must keep in mind that 95% of project's success depends on demand-side. In this regard the outlook for Aethir may be very bright. The project declares $36M annual reccuring revenue. Revenue like this is very rare in the web3 space. Many projects are not able to generate any revenue after succesfull ICO event, due to lack fo product-market-fit.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

Nextrope Partners with Hacken to Enhance Blockchain Security

Miłosz

21 Nov 2024
Nextrope Partners with Hacken to Enhance Blockchain Security

Nextrope announces a strategic partnership with Hacken, a renowned blockchain security auditor. It marks a significant step in delivering reliable decentralized solutions. After several successful collaborations resulting in flawless smart contract audits, the alliance solidifies the synergy between Nextrope's innovative blockchain development and Hacken's top-tier security auditing services. Together, we aim to set new benchmarks, ensuring that security is an integral part of blockchain technology.

Strengthening Blockchain Security

The partnership aims to fortify the security protocols within blockchain ecosystems. By integrating Hacken's comprehensive security audits with Nextrope's cutting-edge blockchain solutions, we are poised to offer unparalleled security features in our projects.

"Blockchain security should never be an afterthought"

"Our partnership with Hacken underscores our dedication to embedding security at the core of our blockchain solutions. Together, we're building a safer future for the industry."

said Mateusz Mach, CEO of Nextrope

About Nextrope

Nextrope is a forward-thinking blockchain development house specializing in creating innovative solutions for businesses worldwide. With a team of experienced developers and blockchain experts, Nextrope delivers high-quality, scalable, and secure blockchain applications tailored to meet the unique needs of each client.

About Hacken

Hacken is a leading blockchain security auditor known for its rigorous smart contract audits and security assessments. With a mission to make the industry safer, Hacken provides complex security services that help companies identify and mitigate vulnerabilities in their applications.

Looking Ahead

As a joint mission, both Nextrope and Hacken are committed to continuous innovation. We look forward to the exciting opportunities this partnership will bring and are eager to implement a more secure blockchain environment for all.

For more information, please contact:

Nextrope

Hacken

Join us on our journey to deliver top-notch blockchain tech and a safer future for the industry!