How to set fair IDO token pricing and caps?

  • dinastafi
    Participant
    Posts: 9

    Fair token pricing requires valuation modelling. Determine pre-money valuation by projecting token use (fees, staking), APY, and total market cap—usually at ~$3–10M for strong IDO marketing projects. Set price per token by dividing target raise (e.g., $500k) by number of IDO tokens. Include minimum/maximum caps to prevent whales or sybil wallets from dominating—e.g., $500–$5,000 per wallet. Introduce tiered allotment based on investor level or vesting participation. Consider dynamic pricing—Dutch auction mechanism enables market‑based fair price discovery. Ensure vesting periods to prevent immediate dumps. Pre‑IDO audit and manual KYC aids fairness. Publish tokenomics and cap tables ahead of time. Post‑IDO, retain LP in AMM protocol with locking to signal commitment. Use market comparables in same vertical or traction stage to justify your price. Ultimately transparency and balanced distribution breeds long‑term trust.

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