$GURU LBP parameters

Summary

The proposal defines overall LBP parameters.

Background

In order to achieve a fair launch and get more liquidity, the DAO decided to use LBP to conduct a public sale of $GURU, and the value of $GURU will be determined by the market.

Proposal

  • Start Date:Within a week of token economics confirmation
  • End Date:72 hours after the start of LBP
  • Starting Price:$13.09
  • Ending price:$0.71
  • Blockchain: Ethereum
  • Initial pooled: 20,000,000 GURU : 5,000 WETH(Mutable, determined by finalized token economics)
  • Starting weights: GURU 95%: WETH 5%
  • Ending weights: GURU 50%: WETH 50%

LBP Configuration

According to the LBP curve analysis of past projects, we may not reach the price of $0.71, which depends on the market’s recognition of the value of $GURU.

The following are some examples of LBP curve changes:

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1

Pros
A fair launch can be achieved and the price of $GURU is defined by the market.

Cons
Excessive shares of tokens being sold will result in more tokens in circulation in the market.

62 Likes

COW Protocol is currently trading at 20M.

Implied market cap of 71M to 1.3B with only 20% (20M of 100M) of tokens seems too much to ask imo.

3 Likes

Can you explain why the starting price is so high? What is it for? Who is going to buy at $13 if it costs less than $1 a day later?

5 Likes

Buddy you did a nice job here.
But the starting price is too high and will likely scare investors away.
Let’s look at starting price of $7-8 and arrive at $1 for the end price

2 Likes

Hi, Everything is undecided, before LBP we should determine token economics first.

Token economics guide how much shares we should use in LBP

3 Likes

This is the characteristic of LBP, because we have determined the starting weight of 95% $GURU and 5% WETH, so the system will help us calculate our starting price.
If you are familiar with LBP then I think you should know that there is nothing wrong with this, it is a game process, $GURU has a valuation in everyone’s mind, and we provide a price range large enough for the market to discover the value of $ GURU.

2 Likes

As the case I provided, it’s not a downward curve.
This is a process in which the value is discovered by the market. The end price of LBP may be $1, $5 or other prices, who knows, the market will determine its value.

1 Like

All he’s saying is that the OPs start and end price parameters for the LBP are too high.

How much ETH has the DAO available to seed the LBP? That should start the conversation off in the right direction hopefully instead of these pie in the sky numbers.

3 Likes

I think we can start talking about allocating $1 million in the equivalent of ether and 10 mil GURU. Ratio 10/90. This will give us an interval of about $1 to $0.1
This is in the current realities.
Closer to autumn, I think we can consider an interval from $2 to $0.5.
Which is more preferable to me

3 Likes

No, DAO does not have WETH, but Nick said that most likely Dev Sub-DAO will lend this initial liquidity for LBP.

Ahh… Yes, the starting price is really high, but it is determined by the initial weight, you can check other projects to learn more about LBP.
But as I said, we need to figure out the token economics first, we need to figure out what percentage goes into airdrops, how much money do we need to raise to add liquidity.

And this is all empty talk without token economics, I just providing a template for discussion, maybe someone can make some adjustments on this basis to make more DAO members satisfied.

2 Likes

If it can get the support of the majority, any weight and any price are acceptable, as long as the vote can be passed.

I’m just trying to move the process forward because a lot of people don’t know what a LBP looks like, I’m just providing a template.

2 Likes

Thank you! Try substituting my parameters above or give me a link to the configurator I’ll play with it

1 Like

https://copperlaunch.com/

For your information. Try to find the case here and set the LBP.

You can set any parameter here, but it takes thought and calculation.

5 Likes

Thanks for the great proposal and all the data, but the thing is, although you have provided some examples for not downward curves, searching through Copper Launch, we can see that most of the curves end up falling down, so I also think that the price range to large especially the starting price, it’s too high. Consider lowering it since, in the bear market, investors take fewer risks.

1 Like

I think someone who deeply understands LBP’s should make a compilation of different options about start/end price and amounts with its pros and cons. Now everything looks stuck cuz people not ready to develop LBP parameters by themselves and maybe it will push us forward if we would have just 2-3 options in voting here(on forum). Probably there would be something to discuss.

1 Like