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Fair Token Launch: LightLink's LBP Strategy

Discover LightLink's fair approach to token distribution through the Liquidity Bootstrapping Pool (LBP) on Fjord Foundry. Our LBP strategy promises a fairer distribution and efficient price discovery for the upcoming LL token launch from April 21 to April 23, 2024.

LightLink
LightLink3 min read
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We are adopting a Liquidity Bootstrapping Pool (LBP) on the Fjord Foundry platform for the upcoming public offering of LL tokens. Our $LL LBP will commence from April 21 to April 23, 2024.

This decision leverages the LBP's innovative approach to token distribution, aligning with our commitment to ensuring a fair and efficient discovery process for the token's market value.

Why Choose LBP for LL Token Launch

LBP is a specialised type of DeFi mechanism designed to facilitate the initial distribution and price discovery of new tokens in a more democratic and efficient manner. LBPs are particularly useful for projects seeking to launch their tokens while avoiding the pitfalls of traditional fixed-price sales or auctions.

Unlike traditional token sales where the price is set in advance, LBPs allow for dynamic pricing. The price of the token in an LBP adjusts automatically based on supply and demand dynamics. If demand for the token increases, the price goes up. If demand decreases, the price falls. This mechanism helps in discovering the true market value of a token in a gradual and more natural way.

There are two key reasons as to why we have selected the LBP as our preferred launch method:

  1. Fairer Distribution. By utilizing a unique price decay mechanism that adjusts to actual market demand, LBPs can enable a wider range of investors to participate in the token launch. This contrasts with fixed-price sales, which can favor those with early access or larger capital, leading to a concentration of token ownership.
  2. Efficient Price Discovery. The dynamic pricing of LBPs helps in more accurately discovering the token's market value, as it adjusts in real-time based on buying and selling activity.

The design of the LBP we will offer has been carefully considered, ensuring that an adequate supply is available for all willing participants and graduating the decline of price so that volatility is limited.

LightLink's Liquidity Bootstrapping Pool will have the following parameters:

The initial price for the sale will progressively decrease in accordance with the specified weight adjustments.

The sale will take place on the Ethereum network, and LL tokens will be available at conclusion of the LBP. LL tokens can be bridged to the LightLink network following the sale.

How Does LBP Work: A General Guide

This section is designed to introduce potential participants to the LBP process. We recommend staying informed through the official Fjord Foundry platform for the most current updates and official announcements.

When you access the LBP platform, the interface you encounter will differ based on the phase of the LBP—whether it is pre-launch, active, or has concluded. Below is a step-by-step guide to navigate through this process.

Understanding Buying Strategy

Fjord Foundry's LBP employs a unique price decay model to ensure a fair distribution of tokens.

Initially, tokens have a high price to deter bots and large investors from monopolizing supply. The price then gradually lowers to a more realistic level, allowing participants to enter at a price they find fair.

This strategy requires participants to be cautious and make informed decisions about when to buy, as the initial high prices eventually adjust based on market response and the token's weighted setup in the LBP.

Making a Purchase and Redeeming Tokens

Based on all of the factors you have taken into consideration and the price is at a point where you feel it is fair market value, you can begin your purchase.

Looking Ahead

As we advance towards the LL token launch through an LBP, our focus remains on ensuring a transparent, fair, and efficient process for all involved. We invite you to stay connected for upcoming details on the launch timeline and preparations for participation on our social media.

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