Tier Structure
The benefits and framework
Last updated
The benefits and framework
Last updated
GADA aims to drive the expansion and adoption of the Cardano ecosystem by providing a secure and decentralized platform for projects seeking funding and incubation and for investors to filter the value-added projects as it’s community-driven.
The tiers are modeled to be inclusive to all investors, regardless of size, with a low barrier to entry in the first, second and third tiers. We incentivize larger token holders to stake into the upper tiers by yielding higher allocation opportunities. Lastly, it is key to understand that every tier is guaranteed to have a token allocation from GADA Pro and Light’s incoming pools!
The Tier structure will be dependent on the type of sale chosen by project owners. They can choose either to hold a private placement/whitelist sale or a first come, first served (FCFS) sale.
Let’s imagine an example project called Vista Token that is using our GADA Pro Launchpad. To simplify the math, let’s say they are selling 1,000,000 tokens in the public pool. There are 100 Tier 1 Members, 50 Tier 2 Members, 25 Tier 3 Members, 10 Tier 4 Members and 5 Tier 5 Members.
Tier 1 Members have a weight of 5, Tier 2 Members have a weight of 10, Tier 3 Members have a weight of 20, Tier 4 Members have a weight of 65 and Tier 5 a weight of 100. The combined weight of all the qualifying buyers in this example is (1005) + (5010) + (2520) + (1065) + (5*100) = 2,650
The amount of tokens allocated to each “share” is 1,000,000 / 2,650 = 377.36
The formula for the number of tokens allocated to a tier is given by:
users_in_tier * share_amount * tier_pool_weight
The amount of tokens for Tier 1 is 100 * 377.36 * 5 = 188,679
The amount of tokens for Tier 2 is 50 * 377.36 * 10 = 188,679
The amount of tokens for Tier 3 is 25 * 377.36 * 20 = 188,679
The amount of tokens for Tier 4 is 10 * 377.36 * 65 = 245,283
The amount of tokens for Tier 5 is 5 * 377.36 * 100 = 188,679
The formula for the amount of tokens a user in a tier can purchase is given by: num_tokens_in_tier/num_users_in_tier
The amount of tokens for each user in Tier 1 is 188,679/100 = 1,887
The amount of tokens for each user in Tier 2 is 188,679/50 = 3,774
The amount of tokens for each user in Tier 3 is 188,679/25 = 7,547
The amount of tokens for each user in Tier 4 is 245,283/10 = 24,528
The amount of tokens for each user in Tier 5 is 188,679/5 = 37,736
When the whitelist process is concluded and all the investors know their allocation amount, there is no minimum or maximum allocation. Either the investor claims all the allocated tokens in exchange for ADA or other chosen currency, or after 24 hours the allocated tokens will be returned to the project owners.
