🔓Staking

To set the scene of why we are working on this model. We have seen issues with the scalability and fairer distribution of allocations with most launchpad models.

The first part is scalability:

Most launchpads only have a single utility for their token with these old models. Which is to earn allocation positions in pre-sales. This is often laid out in a tiered structure depending on how many tokens you have staked. The higher tiers having a higher chance of allocation as well as a larger allocation amount in general.

The issue is; as the value of the token rises (as well as the market cap), these tiers can start getting fairly expensive (some entry IDO tiers in the bull market were 20k for the chance at a 100 dollar allocation). This may work in a parabolic bull market where everything is going 100x, but in slower markets and in general it is not sustainable or scalable.

Early users eventually want to take profit, new users can’t afford to get in, and when project launches slow down due to market conditions, combined with token emissions starting to unlock, it all unravels fairly quickly.

As a platform, a significant amount of tokens staked is ideal. In most other types of platforms involving staking, you would increase your customer base/number of stakers and that dollar per staker value would not need to be as high.

But on an IDO platform, if you increase the base number of stakers, then the chances of a user getting into an IDO drops as well. Many platforms struggle to get above 500 mill market cap at most because new users cannot easily come in after a certain point and everything gets top heavy.

You could increase the size of the funding rounds as well as the number of allocated spots to combat this, and this likely has to be done anyway as your customer base grows. But it does not always work in practice, as the funding amount depends on the launching project demands and market conditions.

Certain platforms such as Trust Swap have released Token amount x time locked models to factor in users with smaller amounts of tokens who are willing to commit long term for more chances of getting into rounds, as well as receiving a higher weighting of the yield.

This by itself is not the full solution to this dilemma.

The model below is how we have approached this issue and will expand in more details now that context has been provided.

Eclipse's overarching solutions to these issues are:

• Build out a launch ecosystem where the token has multiple utilities across various platforms/products, as well as network effects in the future from a dapp ecosystem.

• Add the time lock x staking model with 5 term options, but allow for earlier exits through penalties so users have options to be more liquid. Users who lock will earn 100% of their Essence upfront as well as daily ECLIP rewards.

• Give users an option to stake with no lock period to earn Essence each day, with the ability to Un-Stake at any time with no penalties.

• The Eclipse staking calculator helps users decide what combination of staking and locking strategies is best for them.

• Originally yield will come from emissions, but Eclipse has a model to allow real yield to scale as the platform expands and more projects are launched.

• Improved allocation distribution model for IDO's so users get more of a fair chance and don’t feel they are missing every IDO. This enables the continual expansion of the Eclipse user base (we will break down the modelling behind this).

• There are several other exciting utilities that will be released soon, but these documents will only focus on the core utility.

Keep in mind this modelling is complex on the back end, but the front end has been simplified to enable for a greater UX experience, and be more friendly to novice users.