Participation in IDOs

What is a project pool?

A project pool is a smart contract created specifically for IDO purposes. The project pool (smart contract) stores the tokens of projects that are raising funding through AlgoDAO and it collects payments from AlgoDAO members interested in participating in the IDO. The smart contract has pre-defined parameters such as the start and end dates of the IDO, the minimum contribution, and maximum allocation for each user, and it ultimately manages the IDO process transparently.

What is KYC?

KYC is an acronym for ‘Know Your Customer’ and it refers to the process of establishing the ‘identity’ of each person participating in funding rounds on AlgoDAO. The KYC process is geared towards ensuring that AlgoDAO members are in compliance with anti-terrorism financing and anti-money laundering requirements, in addition to being politically-exposed persons or residents of restricted jurisdictions.

How do I perform KYC?

We will soon provide a link through which you can begin the KYC process. The KYC service is provided by a 3rd party dedicated company.

Do I need to perform KYC for every IDO?

No. You will only be required to undergo the KYC process once.

Who can participate in an IDO?

AlgoDAO welcomes everyone to apply and participate in public IDOs. Once you have completed KYC and have the minimum ADAO requirements for each IDO. You will not be able to complete KYC and participate in IDOs if you are resident in certain restricted prohibited jurisdictions that include the following countries: Cambodia, Ghana, Afghanistan, Mauritius, Myanmar, Nicaragua, Pakistan, Senegal, Syrian Arab Republic, Yemen, Iran, North Korea, United States of America (except accredited investors), United States Minor Outlying Islands (except accredited investors).

What’s the difference between pre-money financing and public IDO stages?

Pre-money financing, also known as ‘private/seed sale’ is a token sale round reserved for particular members or groups of investors. Usually, it involves slightly different prices per token and a prolonged vesting schedule.

Why does the Vanguard access projects at a lower price than High Council and the Federation?

Vanguard members are able to access projects at a lower price than High Council members because the Vanguard bears more risk of early-stage participation in the seed round. High Council members also get a better access price than Federation members because High Council takes on more risk by participating in private rounds. Federation members also get a much better price than the general public because they access the projects before the tokens are listed on exchanges.

What are possible pool states?

Project Pools for IDOs on AlgoDAO can be in one of the following possible pool states once the IDO begins. In Progress The “In Progress” state means that the IDO is ongoing and open for participation

Sold Out

The “Sold Out” state means that the project received exceptional interest from the AlgoDAO community and the pool was bought in full before its expiration date. If you were able to buy into the project before it was sold out, you can claim your project tokens.

Finished

The “Finished” state means that the project reached and passed the ‘Soft Cap’ target set for the IDO and the IDO expiration date has passed. If you bought into the project, you can claim the project tokens.

Paused

The “Paused” state means that AlgoDAO detected some anomaly or suspicious activity around the project and paused the pool. Since the pool is paused, it's impossible to interact with the pool. However, this is typically an emergency situation and it doesn’t take long to resolve.

Failed

The “Failed” state means that the IDO pool failed. An IDO pool will be considered “Failed” if it is not able to meet the ‘Soft Cap’ target before the pool expiration date. An IDO pool can also be marked “Failed” if AlgoDAO cancels it in an emergency response to malicious intent or activity. When a project is marked “Failed” the AlgoDAO users will receive refunds equivalent to the funds they sent into the Project Pool.

I sent the transactions and received an error, what does this mean?

The error after sending a transaction to a project pool could either mean that the pool is no longer available; meaning it is no longer in the “In Progress” state by the time your transaction was confirmed on-chain. You could also receive a transaction error message if you didn’t include enough transaction fees when sending your funds to the pool.

What is the minimum contribution?

There is no minimum but there is a maximum per project. The max allocation is determined by your membership level or tier. Vanguard gets the biggest allocations at the lowest prices. But the prices are still lower than the listing prices.

I bought tokens from the pool and the transaction was successful, but I don't have any tokens in my wallet. Is that correct?

You need to execute a separate smart contract call by claiming the tokens from the pool, only then you will receive the tokens in your wallet. Please note that you will only be able to claim the IDO tokens during the "Distribution Stage" after the IDO is successfully completed.

I bought some tokens in a pool and then changed my mind. Can I return my funds back?

No, purchased tokens cannot be sent back to the pool nor can they be refunded.

Can I buy project tokens via multiple transactions?

Yes. You can buy project tokens using multiple transactions. However, you can only do so from a single whitelisted wallet address. Also, you need to ensure that the total amount of all the transactions does not exceed the maximum allocation for your membership tier.

How do I claim tokens I purchased and what is the time limit for doing so?

You can claim your tokens using the ‘Claim’ button once the pool time closes. The pool time will close either when the pool is fully subscribed or when the time fundraising has ended. This “Claim” button will become functional after some ~30 minutes have elapsed since pool completion, to enable the project teams to set up secondary market liquidity pools. Please note that you can claim your tokens at any time, and indefinitely once the pool has closed. There is no deadline and the smart contracts will be ready to release your tokens to you whenever you are ready to claim them.

How do I verify token ownership?

Once the transaction is confirmed on the Algorand blockchain, the IDO is completed, and you have claimed your tokens, you should be able to see the respective amount of the project tokens in your wallet. If for some reason that is not the case, make sure that the transaction was successful and you have added the token, from the token list to your wallet.

What is ‘whitelisting’?

Whitelisting is the process of reserving a place for participation in an IDO.

What is ‘guaranteed allocation’ and will the AlgoDAO Launchpad have guaranteed whitelisting?

Most IDO projects distribute only a portion of their token supply to early investors before launching on the secondary market, in order to participate users need to stake ADAO tokens to gain access to a guaranteed allocation. This way the IDO tokens will be reserved and one can easily buy them without having to rush or wait for a token launch. AlgoDAO has 5 IDO tiers, only members with Tier 1 membership (Fleet Commanders) have guaranteed whitelisting.

How many ADAO would need to be staked in order to access the launchpad?

There are no minimum staking requirements to access the launchpad. However, there is a maximum allocation.

What is ‘maximum allocation’?

The max allocation is determined by your membership level. Vanguard gets the biggest allocations at the lowest prices. But the prices are still lower than the eventual listing prices of the projects.

How long do I need to wait for KYC approval?

Typically 24 hours after completing the KYC excluding the weekends

How do I know if I passed the KYC process?

Your KYC status is displayed in your wallet management modal on https://app.algodao.fi/ as well as email notifications from our KYC provider.

Who Decides if IDO Projects are Delayed?

Projects themselves decide when to launch and whether they find the conditions for their project launch appropriate or not.

Do you require KYC for AlgoDAO’s IDO?

No, since $ADAO is a utility token, KYC is not required.

Do you offer the $ADAO token in the U.S.?

For regulatory caution, the IDO is not available in the U.S., i.e. the $ADAO token is not offered in the U.S. Similarly, it is also not available, i.e. not offered various jurisdictions which are subject to sanctions.

AlgoDAO's IDO

AlgoDAO's new IDO parameters are a product of careful thought on the way to incorporate much of the community feedback in the IDO planning while still ensuring that the AlgoDAO delivers on the short, medium, and long-term expectations of the community.

IDO size: $ADAO 400,000

Maximum allocation: US$1000

If you are participating in the IDO, you'll be pleased to know that the total IDO size is now set at $ADAO 400,000 with a maximum allocation of US$1,000 per participant. We expect to have only 300 community members participating in the IDO on a first-come, first-served basis. i.e to buy $ADAO tokens described below.

Tier 1 (Fleet Commander): $ADAO 25,000

Tier 2 (Flagship Commander): $ADAO 12,000

Tier 3 (Vice Admiral): $ADAO 4000

Tier 4 (Lieutenant): $ADAO 1000

Tier 5 (Ensign): $ADAO 60

Early Stake Booster: $ADAO 300,000

In addition to the $ADAO 400, 000 released during the IDO, the Early State Booster program is designed to release another $ADAO 300,000 to the community. Participation in the Early Stake Booster pool will be open for all community members but VCs and team members will be EXCLUDED from the program.

The maximum accruable tokens from the Early State Booster program will be capped at $ADAO 12,000 per participant to ensure that as many community members as possible acquire $ADAO tokens through the program. Please note that the information about participants in the Early State Booster program will be verifiable through a transparency report for the community to confirm that no VCs or team members participated in the program.

Fleet Elite NFT holders: $ADAO 66,610

We’ve also incorporated NFTs into the $ADAO allocation mechanism to ensure that the most engaged community members are rewarded with $ADAO allocations.

Our current NFT holders allocation

Hamster NFT : $1000 USDC - 1333 $ADAO

Ape NFT : $666 USDC - 888 $ADAO

Rooster: $333 USDC - 444 $ADAO

SIGMA farming: $ADAO 233,390

Lastly, you will be able to acquire additional $ADAO tokens through SIGMA farming. SIGMA farming is open to all AlgoDAO users and there is fair access to the SIGMA farming for all users.

If you are not familiar with how SIGMA farming works, make sure to check out our Introduction to SIGMA to better understand how you can earn more $ADAO tokens from the SIGMA pool.

Membership Tiers and IDOs

What is the Pool Weight Multiplier?

Everybody participating in IDOs will receive an allocation limit in the IDO according to the weight multiplier of their tier. For example, the Fleet Commander (Tier 1) membership has a pool weight multiplier of 3, which means people with Tier 1 membership will receive 3 times higher allocation than the people in Ensign Tier, which has a multiplier of 1.

However, the finalized allocation limit in USDC depends on the IDO size and amount of registered participants and it is defined after the whitelisting procedure is done.

What is Participation Odds Multiple?

Participation Odd Multiplies refers to users' chance to ‘win’ the ability to participate in an IDO on AlgoDAO.

Except for Tier 1 members, AlgoDAO members in any other tiers, have their stake weighted for participation multiples. Simply put, each user that is not a Fleet Commander (Tier 1) member, must pass this random draw system. This system works 100% using random modules.

• This means a Flagship Commander Tier 2 member with 12,000 ADAO staked receives x400 ‘participation odds multiple’ — which is the maximum number of tickets a user can have.

• A Vice Admiral Tier 3 member with 4,000 ADAO staked receives x100 ‘participation odds multiple’.

• A Lieutenant Tier 4 member with 1,000 ADAO receives x20 ‘participation odds multiple’.

• An Ensign Tier 5 member with 1,000 ADAO has x1 ‘participation odds multiple’.

What is The Required Stake?

In order to be eligible for a membership tier, users should buy ADAO here and stake it here.

Why Would I Want to Upgrade My Membership?

Tier Upgrading your tier gives you much better chances for participation and higher allocation. Participation chances are represented by the Participation Odds Multiple.

For example, an Ensign tier user stakes 60 ADAO per participation ticket and gets a relatively smaller allocation. In contrast, a Flagship Commander stakes only 30 ADAO per participation ticket and receives a higher allocation.

Do I Have to Maintain My Stake to Participate in the IDO?

For seamless participation in an IDO, a user has to maintain the stake until the distribution stage of the IDO.

Can I Unstake and Stake Again During the IDO? When Can I Increase My Tier During the IDO Timeline?

Users can stake and unstake ADAO tokens at any time. However, a user will be able to register for an IDO only if they have a staking tier. A user’s final participation tier for an IDO is defined at the pre-launch stage, meaning that tiers will not be updated after that. This means that every user can increase their tier before the pre-launch stage starts.