LTO shows a better way to protect their investors

in #aidrop5 years ago

Ever since I joined LTO, the team continued to surprise me with new innovations. They invented something called a troll bridge and its genius!

HERE IS HOW IT WORKS:

LTO Network Model for Token Vesting: Troll Bridge

Many ICO investors understand the problems with the current token vesting schedule. Most projects include some form of vesting schedules to unlock their tokens. This is meant to prevent price dumping during the first month on secondary markets. However, what actually happens are steep stair like price drops in anticipation to the approaching unlocked tokens.

The result is a higher volatility and increased pump & dumps. LTO Network came up with an innovative solution to this problem called the Troll Bridge

Private sale and seed tokens are distributed in mainnet tokens. Crowdsale is distributed in ERC-20 tokens, and they are listed (liquid). Mainnet launches at the same time as the crowdsale, and there is a bridge between the two. There is a bridge fee curve between the mainnet and ERC-20. And the sooner you exit, the more fee you pay as a private investor. If you fulfill your promise of being a strategic investor, you exit both with the bonus and the principle. Fees are burned, maintaining demand/supply and making it a perfect way to reward holders and private sale investors. This lets any private sale investor choose when they want to exit the position.

This new unlock strcuture incentivies two major aspects of a coin. Firstly it mitegates selling pressure by burining tokens of the seller, while at the same time increasing buying pressure by reducing the total token supply. In theory the Troll Bridge should create a increased token price on secondary exchanges as well as stablize it.

Its really cool and I hope more projects will adopt this strategy, so that they days of Fliping ICOs will soon be over. People should not invest in a projcet because they can flip it. If thats the only reason to invest, then there are easier ways to make moeny that are also more fun. Invest in projects because you think they provide real value for the future and also make you money. NOT becasue you think you can sell it to a great fool!

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