Suggestion for LBP parameters

Summary

The proposal defines overall LBP parameters.

Background

LBP has a vital role to reach fair launch for humans and better price discovery. In order to set up LBP launch, LBP parameters must be set by GuruDAO and it will play an important role on GURU token price.

Proposal

Based previous discussions and document of Copper platform, I offer these parameters:

  • Duration: 45 days

  • Starting Price: 8.13$

  • Ending price: 1.43$

  • Minimum purchase amount: 60,000 GURU per day

  • Blockchain: Ethereum

  • Initial pooled: 20,000,000 GURU and worth 8,500,000$ WETH

  • Starting weights: GURU 95%: WETH 5%

  • Ending weights: GURU 50%: WETH 50%

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Pros

  • Fair launch for humans.

  • Better price discovery.

  • Permission less and scalable

57 Likes

Thanks, much appreciated that you want to step in and start brainstorming LBP parameters!

Any reasons why this should take so long? Usually, LBP lasts for 3 days or less.

That’s interesting do you want to share some thoughts behind these numbers? We probably want to build conviction around the valuation model.

17 Likes

Dear Nick I suppose that a significant part of DAO do not have clear idea about LBP therefore, I started this discussion and my aim is starting discussion to find the best parameters together. These parameters are just my primary suggestion and I think a part of them need to change.

I checked several LBPs today and I agree to change duration to 3 days.

About starting price, I checked ParaSwap and realize the initial fully diluted market cap was more than 3 billions dollars and now it is just 132 millions dollars therefore, I set our initial fully diluted market cap to lower than one-third of ParaSwap to reach more reasonable price at beginning.

I beg every DAO member to share their opinion to improve this parameters :pray:.

7 Likes

Because parameters are effect each others and the duration will change to 3 days, I suggest minimum purchase amount increase to 500,000 GURU per day. It will help to ending price to increase.

3 Likes

45 days looks like eternity… Checked recent LBP’s on Copperlaunch and they are all 2-4 days. Wont say this is best cuz im not very familiar with LBP, but looks like 3 days is good base point that suits the majority of projects. If we want something else we need to analyze simulations with different duration

3 Likes

Good suggestion, I fully agree with it. I hope this will not happen for 45 days but only 3. I hope we will see this offer on snapshot soon

3 Likes

Great offer, I think we need to increase the minimum purchase amount to 120,000 Guru per day, we really like the initial pool

Thank you very much for your discussion.
I changed the parameters and simulated the price of GURU as following:
• Duration: 3 days
• Starting Price: 6.22$
• Ending price: 0.49$
• Minimum purchase amount: 500,000 GURU per day
• Blockchain: Ethereum
• Initial pooled: 20,000,000 GURU and worth 6,500,000$ WETH
• Starting weights: GURU 95%: WETH 5%
• Ending weights: GURU 50%: WETH 50%

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Could you please share your new comments about new parameters :pray: :pray:.

1 Like

Thanks dear Guruuser45 for your comment. If we set minimum purchase amount 120,000, the ending price will fall significantly so if you are agree I changed it to 500,0000 in the modified version.

1 Like

We probably should put more thoughts on what we want to achieve with LBP, how much we want to raise, what valuation make sense etc, etc. Also, 20M probably could be adjusted as well if we don’t want to sell this amount on LBP.

Explainer on LBP, and FAQ here:

4 Likes

I agree with your opinion. These parameters will have significant impact on future of GURU, therefore taking a decision needs stronger discussion and more thought.
With a lower percentage of GURU (below 20%), we can increase starting price and decreasing amount of WETH pool.

We have not decided on token allocation yet, so we can’t specifically determine the amount of initial pooled, Thats why I think we should discuss the token allocation first.
Otherwise all we can do is just set it as TBD.

Before deciding on amounts pooled, we need to determine what we aim for. $3-5M? $10M? $100M? How much money do we need for the DAO treasury? How to value the tokens we want to sell?

11 Likes

Dear Nick
You previously said that the main team (which is a sub DAO now) do not need budget for next 6 months. Therefore, I think DAO do not need a vast money for next 6 months and about 1M$ is enough.

1 Like

Yes $3-5M certainly makes more sense, especially now that investors are waiting for a more conducive market of course.

2 Likes

Hi dear DAO members. At first I appreciate all DAO member who shared their opinion on the ((Suggestion for LBP parameters)). After several days of discussion, I want to change initial LBP parameters as following :
• Duration: 3 days
• Starting Price: 6.41$
• Ending price: 0.52$
• Minimum purchase amount: 250,000 GURU per day
• Blockchain: Ethereum
• Initial pooled: 9,000,000 GURU and worth 3,000,000$ WETH
• Starting weights: GURU 95%: WETH 5%
• Ending weights: GURU 50%: WETH 50%
Please share your opinion on the new parameters.

5 Likes

Whats your reasoning and evalution why 1million is enough very curious. if the money was used for the betterment of dexguru we shouldnt have an issue with giving them more funds

1 Like

hm… I’m not sure that everyone is on the same page right now. We aren’t talking about funding any development work. “Them” is a DAO, and we didn’t spend anything yet. We are talking about filling DAO treasury and bootstrapping token liquidity after TGE: [Discussion] LBP Details and Parameters

5 Likes

Can you please clarify, what these DAO funds raised via LBP could be used for? It looks like they won’t be used to pay for development work? Or did I not understand correctly?

Wonder what DAO funds will / won’t be used for.

For what DAO wants them to be used for as long as it fits and is aligned with DAO goals outlined in previous proposals.

1 Like