Tier Structure

The benefits and framework

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.

Benefits

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.

Framework

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.