Trading platform DeFi is introducing its DVF token on its own fair launch distribution mechanism, DeversiFi Launch Market (DLM).
Through the new DLM feature, two million DVF tokens will be made available at a public distribution event on July 8. The DLM combines elements of a Dutch auction and a liquidity pool (LBP).
Allow fairer auctions
Will Harborne, co-founder of DeversiFi, said that his company built the DLM mechanism because he believes that token distributions should be made available in the fairest way to everyone. He noted that, typically, the initial token distribution mechanisms at Layer 1 are constrained by gas prices and front-running. This ends up favoring those who react faster.
“All of these factors prevent potential community members who don’t have big pockets from participating and lead to a smaller community,” Harborne noted. He added that the most successful tokens so far are the ones that were launched with inclusion in mind.
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Typically, token launches tend to be associated with volatility due to incorrect market values being assigned to new tokens. By determining the market price of a new token that is not yet traded or circulated, DLMs help solve this problem. This will allow anyone to participate in the initial launch without incurring exorbitant fees.
Launch of DVF
The DVF launch by DeversiFi will take place over two days, using the initial price of the DML reverse auction, which starts high and moves steadily down over the two days. Every time someone buys DVF, the market price will go up, causing the floor price to rise. Participants can sell their DVF to the market if the price rises too high. Over time, this will cause the price of the DVF to settle around a fair market value.
Additionally, DeversiFi will launch a full governance module in July. This will allow DVF holders to stake their tokens to receive xDVF tokens. It will give them the right to vote on key governance decisions, while earning a potential share of platform commissions. DeversiFi has been able to make these two breakthroughs thanks to a recent $ 5 million funding round.
The post DeversiFi debuts token with a fair launch distribution mechanism was first seen on BeInCrypto.