Mar 22, 2021
CardStarter Tiered Membership Structure and Fair Distribution Model
CardStarter rewards loyal community members with guaranteed allocations to projects launching through the platform. Similar to our raise structure, projects that launch through us will host a wide distribution model, while sporting relatively low contribution caps per individual. Our design is built to maintain both foundational and proven economic structures shown to provide the highest opportunity for organic growth, while presenting a larger distribution to (potentially) risk averse contributors. Along with our native insurance policy, CardStarter has made sure to implement user experience and protection as top priorities.
Tiers
As of now, there are 3 tier levels which our users qualify for. The requirements for each tier are detailed below:
Much consideration has gone into designing the tier requirements in a way that provides accessibility to early adopters, while limiting the number of community members who can qualify for placement. As with any limited asset, tier positions should be expected to price out smaller players; for this reason, tier requirements are subject to governance. They may be restructured or reformatted to a model which allows the community to grow, and/or to make the tiers more accessible.
Staking
Projects launching through CardStarter will each have their own designated staking pool. CARDS holders that wish to participate in the sale will be required to stake a minimum number of CARDS in the respective pool for 7 days prior to a project’s sale to be guaranteed allocation for that project.
Pool Weight Example
Here’s an example of how tiers and pool weight would allow us to calculate allocation for a sale:
In our example scenario, a project launching through CardStarter (Project A) wants to sell 1,000,000 tokens in their initial raise. 100 CARDS holders have staked their required amount to gain allocation to the sale of Project A.
- 60 Bronze Members have staked their required 10,000 CARDS each for 7 days
(Pool Weight 1X*60=60 Pool Shares) - 30 Silver Members have staked their required 30,000 CARDS each for 7 days
(Pool Weight 2X*30=60 Pool Shares) - 10 Gold Members have staked their required 90,000 CARDS each for 7 days
(Pool Weight 3X*10=30 Pool Shares) - The total number of pool shares for all tier members is (60+60+30=150). Therefor, the 1,000,000 tokens available in Project A’s sale would be divided by 150 (1,000,000/150=6,666.6) Each share of pool weight equals 6,666.6 tokens, meaning that Bronze Members (Pool Weight 1X) would have the ability to buy 6,666 tokens, Silver Members (Pool Weight 2X) would be able to buy 13,333 tokens, and Gold Members (Pool Weight 3X) would have a 19,999 tokens in Project A’s sale.
Considerations
Vesting, soft/hard caps for projects will be determined on a case-by-case basis to meet the requirements of our launchpad partners.
Although a CARDS member may stake and be qualified for allocation in a project’s sale, it’s possible that not all community members will fulfill their allocation. If a project’s first sale round closes, and they haven’t achieved their hard cap, the remaining tokens will be released in a second round. The tokens will be available in this round on a first come first serve basis (FCFS), and are accessible to both CARDS community members and non CARDS members, alike.
The Bronze Pool Weight Allocation that was calculated the first round will carry over to round two, establishing the new maximum cap per individual.
Continued Staking and Insurance Policy
CARDS community backers who participate in project sales are eligible for coverage under CardStarter’s insurance policy. This feature was built to provide community members a sense of financial protection in the case of a project that failing to deploy. To be eligible for insurance coverage, a CARDS backer must keep their CARDS staked in a project’s designated staking pool following the completion of a sale.
Terms, conditions, and requirements for CardStarter’s Insurance Policy will be expressed further in a subsequent article.
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