KoiPond 101: How does KoiPond work?

Despite having raised over $5m from the community, this dev wonders if any of the KOI holders actually understand how KoiPond works.

KoiPond BRC20 Launchpad

08 Jan 2024 — 2 min read

Despite having raised over $5m from the community, this dev wonders if any of the KOI holders actually understand how KoiPond works.

So to make it easier on our poor fishes, the team has put together a Dummies Guide to KoiPond to describe exactly how KoiPond works.

The KOI token

KOI is the token which powers the entire KoiPond Launchpad. In order to participate in any BRC20 launches on KoiPond, you will have to hold and commit KOI.

Token chart: https://dexscreener.com/ethereum/0xc84c3316b65f42cfd8648cdead03bcebaa3bd9e8

2. The KoiPond Launchpad

Once you’ve figured your way around uniswap and bought KOI (woop), you can now enter the BRC20 launches!

This is the part where I have to insert a warning saying that if you’re from any sanctioned countries or any one of the restricted countries, you will not be able to participate in the launches. Sorry, go email your government official.

For those who can continue, you may now be wondering — what do all those numbers and words mean? Well, here you go.

So, how are the BRC20 tokens allocated to participants?

Participants first wrap KOI for dKOI to participate in token launches.
Participants then “commit” the amount of dKOI (wrapped KOI) they want to use in the token sale.
Note: The price of the token is pre-set before the sale and is always fixed.
If the sale is not oversubscribed (demand doesn’t exceed supply), all the dKOI that a user committed will be exchanged for the launchpad token at the fixed price.

Oversubscription

In the case the sale is oversubscribed (more demand than available tokens), the launchpad token will be allocated proportionally to the amount of dKOI committed by each person.
More committed dKOI means a larger share of the token sale.
Note: There is no maximum limit on how much dKOI a participant can commit. Participants are able to “top up” the amount of dKOI committed during a sale if they so desire.
So if you put in more dKOI, you get to buy more of the launchpad token. Add twice as much dKOI, you get to buy twice as much token!

Excess dKOI

Because the price of the launchpad token is fixed, there might be excess committed dKOI that participants were willing to use but couldn’t.
This excess dKOI is not wasted; instead, it remains available for participants to claim after the token sale concludes.

If you’re interested in reading more about how KoiPond works, check out our whitepaper: https://docs.koipond.fi/auction-mechanic/proportional-allocation-mechanism-pam