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User Guide
B-Insurance
A strict custodial mechanism for the safety of your investment.
Problem
One of the risks of investing in IDO is that sometimes after a successful launch, project teams fail to make good on their promises, they no longer proceed on developing the project or adhere to the roadmap, causing a loss of confidence for investors and the market and a decrease in the token price.
Solution
By raising capital through BSClaunch, the project will lock part or all of the raised capital into the liquidation pool. After a certain period, the market will have a say in deciding whether this capital can be returned to the project team or it will be permanently locked in the liquidity pool.
The special mechanism allows projects to define flexible unlock conditions to meet the financial needs of the project.
Community Governance Insurance
So, we understand that the capital raised by the project will be locked in the pool of liquidity. This amount can only be withdrawn only when the unlocking condition is met.
The biggest question left is what unlocking condition should be used to ensure transparency for both the project and the investor?
The answer may seem obvious: the market value of the token.
Let's consider the following scenario:
Project X raises $500,000 via BSClaunch at the token price of $0.5, with a commitment to lock 80% of the raised capital in the liquidity pool for six months; the unlock condition is satisfied if the market value of the token after the six-month period is not lower than the token price at the time of IDO launch.
After six months of being listed on the exchange, if the token’s value is greater than or equal to $ 0.5, the locked capital will be automatically withdrawn from the liquidity pool and sent back to the project team. Otherwise, this amount will be permanently locked in the liquidity pool.
Benefits
For Project:
Using B-Insurance shows the project’s long-term vision, helping the project build trust from the community.
For Investors:
B-Insurance helps investors eliminate doubts about the project’s integrity while increasing the liquidity pool for the market.
Last modified 6mo ago
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