CLNY Token Launch Auction 2022 FAQ.
When will the Token Launch Auction (TLA) take place?
It begins on 25th January, 2022 at 12.00pm UTC.
When will the TLA end?
It ends on 28th January, 2022 at 12.00pm UTC.
What are the initial parameters?
Start: Tue 25th Jan 12:00 pm UTC
End: Fri 28th Jan 12:00 pm UTC
Purchase Token: USDC
Initial CLNY: 10,000,000
Initial USDC: 1,000,000
Start Weights: CLNY 95 : USDC 5
End Weights: CLNY 50 : USDC 50
Swap Fee: 2.5%
Starting Price: $1.97
Where will the Token Launch Auction take place?
It will take place on Copper, a platform for open and transparent Token Launch Auctions which leverages Balancer’s Liquidity Bootstrapping Pools (LBPs).
Who can take part in the CLNY Token Launch Auction?
Anyone with a supported crypto wallet can take part.
Is there a pre-registration?
Is there a Know Your Customer (KYC) process?
What cryptocurrencies are accepted in the CLNY Token Launch Auction?
The TLA accepts USDC.
What crypto wallets can I use?
MetaMask, Wallet Connect, Gnosis Safe and Ledger.
Why are you holding the Token Launch Auction (TLA) on Copper?
The Token Launch Auction on Copper is held on Ethereum mainnet. This allows more people to participate in the token sale as buyers can swap their USDC stable coin for CLNY.
How will the TLA work?
In a TLA the price of the token starts high and, assuming zero demand, 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.
What’s the starting price of the auction?
$1.97. This starting price is determined by starting balances of CLNY and USDC, and the start weights.
Can I learn more about the auction model?
Yes, here is a link to a model you can use to understand the mechanism better.
Where can I learn more about how Copper and how it works?
When should I buy the tokens during the auction?
It’s up to individuals to determine when they believe the price becomes fair and they are ready to purchase. Price decreases during low demand, and increases during high demand. This means there it is extremely difficult to find the perfect time to purchase. Therefore, individuals need to balance the pros and cons of the project itself and also time their auction entry as well as possible based on the weights and anticipated demand.
Is there a limit of how many tokens I can buy?
Do I have to pay any gas fee?
Yes, you have to pay a gas fee as the auction takes place on Ethereum mainnet. There is also a swap fee of 2.5% which goes to the proceeds of the sale.
Matters relating to Wrapped CLNY (wCLNY) token holdings
I am a holder of wCLNY. Can I sell my tokens before or during the auction?
No. They will be locked until the auction has concluded.
When will the unwrapping of wCLNY take place?
Somewhere between 13:00 UTC and 18:00 UTC on 28th Jan, the interfaces to unwrap wCLNY and start pre-sale token vesting will go live.
I am a holder of wCLNY. Can I participate in this Token Launch Auction?
Yes, it is open to everyone.
I heard something about an airdrop to wCLNY holders.
Correct. As long as wCLNY is not unlocked, we will airdrop one million wCLNY to wCLNY holders:
- 500K will be divided between wCLNY holders proportional to their wCLNY holdings.
- 500K will be divided equally between all accounts holding wCLNY.
Why can’t the wCLNY be unlocked before the Token Launch Auction?
If wCLNY was unlocked, Coin Machine purchasers being able to sell into the LBP would be disastrous. It would break the initial price discovery mechanism because anyone who had previously bought at less than the starting price of the TLA would race to dump their tokens at the start in order to get the highest price for their CLNY and push the price down so they could then buy them back again at the lower price. Any unaware auction participants buying CLNY would essentially be rugged due to tokens being dumped into the auction. Furthermore, the collateral (provided by you during the Coin Machine sale) would be fully at risk as a result of the individuals dumping into the LBP.
This is crucial advice and comes directly from the Copper team. Indeed one of their primary concerns when considering a project for inclusion in the “Curated Auctions List” is whether there is already an unlocked token. If there is an unlocked token, they will not list the auction.
TL;DR: wCLNY being unlocked before the LBP is simply not an option.
General matters relating to the CLNY token
Will CLNY be listed on any exchange after the token sale?
After the TLA concludes, the proceeds and retained tokens are likely to be used in part or in whole to seed liquidity on DEXs. The most likely candidates seem to be Uniswap & Sushi on mainnet, and a DEX on Gnosis Chain TBD. We don’t have information regarding the listing on any centralized exchanges.
What are the tokenomics of CLNY?
You can read about the token supply here.
What is CLNY used for?
The CLNY token does several things, it is mainly used in the Metacolony, the future DAO of Colony, and will be required for Governance staking, Revenue Sharing, Reputation Mining and Fee Auctions. You can learn more here.
What is the circulating supply of CLNY?
Day 1 circulating supply after Public sale has completed will be approximately 27m CLNY (13.5%). You can read more about the supply here.
What's the total number of CLNY tokens?
200 million CLNY. More info can be found here.