Token Launch FAQ

Popcorn Token Launch Auction Details:

POP Tokens Offered: 3,750,000

Networks: Ethereum, Polygon

11/29/2021 ~8:00:00 AM UTC until 12/1/2021 ~8:00:00 PM UTC

The auction will take place on Copperlaunch.com, a site for Token Launch Auctions. All proceeds will go to the Popcorn Treasury, a smart contract entirely controlled by Popcorn token holders.

The official Popcorn Twitter account will tweet the contract address. You can track the status of the TLA event on launch.popcorn.network. Everything else should be considered a scam.

What is the purpose of this event?

This is the first opportunity for the general public to buy POP and participate in the governance of the network. The purpose of the Token Launch auction is to:

  • Distribute governance power to a broader community outside of the core team, advisors, and investors
  • Inject liquidity into the Popcorn ecosystem.
  • Allow users to operate keeper nodes in the future when contracts are deployed.
  • Initiate price discovery for POP

What is a Token Launch Auction (TLA)?

Token Launch Auctions (TLAs) are a specific configuration of Balancer’s Liquidity Bootstrapping Pools (LBPs).

Their primary use cases are to:

  1. Launch and/or distribute ERC-20 tokens
  2. Drop collections of ERC-721 NFTs represented by ERC-20 tokens

Key Features:

  • Price discovery. The price of the token starts high and drops based on a pre-configured price decay curve that can be resisted by buying pressure from auction participants. Anyone can buy into or sell out of the auction freely at any time, so price truly regulates itself.
  • Open and permissionless participation. Freely launch tokens and participate in auctions. No whitelists, hard caps, or listing requirements. There is no minimum or maximum allocation. Auction participants choose how much they want to buy.
  • Fair distribution. TLAs flip the first-come-first-serve launch model on its head and change token launches from being a race where the first bot in or the transaction with the highest gas fee wins. Get your token into the hands of as many people as possible in a fair way that disincentivizes front-runners and whales getting better rates than smaller participants.
  • Capital efficiency. The initial price of the token being auctioned can be magnified by up to 99 times relative to the collateral deposited along with it. Additionally, the collateral can be fully retrieved at the end of the auction unless the auctioned tokens already exist outside of the TLA and someone decides to sell into the auction.

What tokens do I need to have in order to participate in the Token Launch Auction?

You may participate in the Token Launch Auction using Ethereum and/or Polygon. Here's what you need for both:

Ethereum:

  • Metamask Wallet
  • ETH - this is used to pay for transaction fees
  • USDC - this is used to pay for the token

If you are participating on Ethereum, you will need to have a wallet with ETH (to pay for gas fees) and USDC to purchase POP token. See this guide for more info

Polygon:

  • Metamask Wallet
  • MATIC - this is used to pay for transaction fees
  • USDC - this is used to pay for the token

If you are participating on Polygon, you will need to have a wallet with MATIC (to pay for gas fees) and USDC to purchase POP token. See this guide for more info

Which networks will be supported?

The Token Launch Auction will be deployed on Ethereum and Polygon. To participate you will need to acquire the native token of the chain you wish to participate on (ETH and MATIC respectively) and USDC to purchase POP.

What is a Liquidity Bootstrapping Pool?

A liquidity bootstrapping pool (used by the Token Launch Auction) allows projects to create meaningful liquidity and distribution at launch, resulting in a fully customizable token distribution mechanic that gives teams and governance token holders control and flexibility for the long term.

What is Balancer and How Does It Work?

Balancer is a decentralized exchange platform with deployments on Ethereum and Polygon. It is designed to provide an open alternative to swap tokens in a permissionless environment.

Balancer’s Liquidity Bootstrapping Pool (LBP) is used for launching a token with low capital requirements, where a two-token pool with the project and collateral token are set up with weights that automatically adjust over time. Balancer pools allow projects to release a token and build deep liquidity at the same time. They apply downward price pressure on the token and disincentivize front-running, speculation, and whale buying.

During the LBP, the price of POP will start high to disincentivize bots, front-running, and speculation, then automatically decrease over time. You should only participate in the LBP if you are familiar with the risks associated with them.

See Balancer’s Liquidity Bootstrapping Pool FAQ for more information.

Why use an LBP?

The LBP is advantageous for Popcorn because it:

  • Distributes governance tokens in a fair manner
  • Helps prevent front-running
  • Helps prevent whales
  • Makes POP open and accessible
  • Balancer pools are secure and battle-tested

Where will the proceeds go?

All proceeds will go to the Popcorn Treasury, a smart contract entirely controlled by POP token holders. Please read the White Paper on how treasury funds are allocated via governance.

What if you want to be part of the community but do not have the capital or technical expertise to participate in the LBP?

There will be other ways to acquire POP tokens in the near future, including POP rewards for network contributions and the ability to purchase POP on exchanges.

If you are going to offer liquidity mining in the future, then why should I buy a token now?

Staking rewards (on Ethereum and Polygon) will immediately follow the end of the Token Launch Auction in December. The only way to take advantage of the staking rewards and liquidity mining incentives is to have POP tokens. The POP tokenomic model specifies that the greatest amount of staking rewards emitted will be during the first several weeks of the liquidity mining incentives program, therefore the earliest users will have the greatest possible opportunity to earn more POP tokens.

What is the total supply of POP?

There is a fixed total supply of 99,999,700 POP. However, because of the way the smart contracts have been developed, this number is expected to decline over time due to token burning associated with keeper incentives.

How many tokens are in circulation?

There are 4,477,900 POP tokens in circulation, including the tokens that will become available through the TLA.

What are the specifications for the LBP?

  • Pool tokens: POP and USDC
  • POP start balance: 3,750,000
  • USDC start balance: 1,125,000
  • POP start weight: 99%
  • POP end weight: 50%
  • USDC start weight: 1%
  • USDC end weight: 50%
  • Duration: 60 hours

What tokens does the pool accept?

The pool accepts USDC to purchase POP.

How is the initial price calculated?

The price was calculated based on the amounts of tokens in the Balancer pool and their weights:

X POP and Y USDC in weights Z : W = (X*Z)/(Y*W) = 29.7 USDC per POP

How is the last price calculated?

In the scenario that there is no demand at all the last price given will be:

X POP and Y USDC with weights 50 : 50 = (X*50)/(Y*50) = 0.3 USDC per POP

You can use the simulation we created with token amounts and weights to predict the price as it is difficult to determine the last price precisely. Thank you to the Perpetual Protocol team for putting together this model!

Will the price weights change over time?

Yes, they will start with the defined weight specification Z : W and change linearly over time towards a 50%-50% split after 60 hours. The graph below visualizes the change:

Is there a minimum or maximum to how much I can contribute?

There are no restrictions on minimum and maximum contribution amounts, so you can contribute as much or as little as you want.

If there is no maximum, can someone buy all the tokens?

Yes, however it is extremely unlikely as that would spike the price due to slippage and the size of the order. You can read more on price impact here.

Who founded Popcorn?

Popcorn was founded by Anthony D. Martin and Michael Kisselgof in early 2021.

Anthony Martin is an experienced technology leader and entrepreneur having worked with several venture-backed start-ups and publicly traded companies over the past 12 years. He is the author of several open source projects and has worked in the blockchain industry since 2017.

Michael Kisselgof is a crypto veteran. His previous project tokenized IP on Ethereum to fund biotech R&D with IKU and worked on the first iterations of erc-1155.

Who are the early contributors to Popcorn?

Jump Capital, New Form Capital, Kenetic Capital, Cakebox Capital, The LAO, Impossible Finance, The Crypto Founders Network, Big Brain Holdings, Hestia Holdings, Amino Capital, Drop Ventures and angels from MakerDAO, IBM, NASA, Google and Deloitte to name a few.

How is POP allocated?

How much did Popcorn raise in previous rounds?

To date, Popcorn has raised $4,556,234.44 to support the development of the project, at an average of $0.314 per POP.

What is the token allocation and release schedule for supporters and team?

A fixed supply of 100M POP tokens have been minted at genesis and will be vested over 5 years.