How BlockPad Aims to Establish Confidence Among Investors
As the blockchain industry is still emerging, investors are provided less security on their investment. In such cases, here’s how BlockPad aims to establish confidence among investors.
Well, blockchain has an immense potential to disrupt almost every sector. From 2021, we are witnessing a major shift from traditional finance by exponential growth of decentralized finance. Various DeFi protocols handle TVL greater than a country’s entire economy.
A variety of dApps built for boosting adoption of DeFi have enabled investors of any size for investment, lending, borrowing, trading etc. — ultimately providing far better returns on investment than CeFi. As a result, blockchain space is aggressively growing its loyal and active investor base.
However, we are not seeing commendable changes in the investment process led by incubators or teams. Projects with problem-solving ideas are raising capital from investors in the name of seed and private rounds while gathering public funds through IDOs. Launchpads have enhanced their investors’ security indeed by actually handling vesting by themselves but what about private and seed round investors?
And that’s not where it ends. Let’s have a look at some perturbing questions from an investor point of view.
1. How are investors assured of receiving vested tokens?
Projects usually handle early-stage investment rounds — seed and private — by themselves. As it is being done manually through SAFT and/or KYC, projects just maintain books involving allocated tokens against invested amounts. Based on a particular vesting schedule, they basically airdrop tokens to investors on weekly, biweekly, monthly or quarterly basis.
That sounds alluring but, in such cases, investors can do nothing if teams stop distributing tokens after a couple of vesting shots. What’s the guarantee? How can we prevent such possible situations? What’s the security of investments?
2. How is the team handling vesting schedules for tokenomics?
In some cases, private investors’ vesting schedules are being handled by launchpads which is good for investors. But mere 20–35% of tokens out of total token supply will have been allocated to investors. So, what happens to the remaining huge numbers of tokens? According to the vesting plan, tokens allocated to team, advisor, marketing, ecosystem etc. must have a release plan but how will the team establish such vesting?
If they are creating vesting schedule themselves, how do investors know if they have deployed vesting? Are those vesting contracts properly audited? Do investors actually consider providing their token custody to teams a good idea, considering the number of surrounding scams?
3. What is being done to LP tokens generated by DEXes?
Decentralized exchanges have eliminated complex procedures, healthy finance and time consumed by centralized exchanges for token listings. Due to decentralized nature, anyone can list any kind of tokens minted on supported blockchain over DEXes. Upon listing on such DEXes, it generates LP tokens to liquidity providers which could also be sold to redeem entire liquidity, dragging token price to ashes.
Therefore, how are investors assured that such LP tokens won’t be sold? They must have locked for a certain period. Now again, what kind of guarantee do investors have that they are actually locked? If locked, is the contract audited so that no one can redeem them?
Well, that’s how BlockPad establishes trust among communities around the globe by not just answering but also solving each one of the above-mentioned queries. It offers BlockPad Vault, an escrow platform for highly customizable tokenomics integrated with four leading blockchains — ETH, BSC, Polygon and KCC.
BlockPad Vesting offers individuals and teams a complete user interface using which they can deploy a highly customizable vesting schedule for tokens allocated to investors, team, advisors, marketing etc. Similarly, projects can also lock their DEXes-generated LP tokens by themselves.
BlockPad does not interfere with vested tokens in any matter while actually showcase all of them via an easy-to-understand interface. It also offers token owners security by audited smart contracts and establishing an infrastructure so that no one can claim unlocked tokens except owners.
Wondering how to utilize BlockPad Vault? Follow this illustrative guide: https://theblockpad.medium.com/launching-blockpad-vault-on-multichain-mainnets-50adf9862145
About BlockPad
The BlockPad is a multichain network of decentralized applications that acts as a gateway to the Web 3.0 ecosystem. It predominantly solves the issue of investor confidence in Decentralized Finance (DeFi) by providing a suite of decentralized and intuitive products with compatibility of multiple blockchains.
It offers a decentralized way to safeguards investors from a range of projects that might pull out the liquidity or sell off vested tokens. On the other hand, projects can leverage its ecosystem from raising funds to support tokens by staking and liquidity mining applications.
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