Concerns about $CLOUD LFG launch vesting

Jupiter DAO LFG Updates
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I want to raise concerns about the way Sanctum LFG is going to happen.

The initial idea of LFG was to create an alternative to CEX launches where LFG provides liquidity and a mechanism for price discovery to happen.

Sanctum corrupts this idea with vesting shenanigans with the only goal of PREVENTING PRICE DISCOVERY.

25% of circulation will be in the LFG pool and this is the only not vested part (if bought).

While 75% of the circulation will have vesting of some sort.
25% from the Alpha vault vest over 6 months.
25% from Earnestnesst vest over 6 months (or claim early and lose half).
25% from capital vest over 14 days (or claim early and lose half).

This is not healthy. This prevents price discovery and has the only goal: keep the price artificially higher for some time. This means that anyone who buys during this period gets an immediate -EV and most likely gets rekt in the end.

They call it “Dynamic Airdrops” which are “pioneered by Drift and Zeta”.

But wait a minute.

Drift indeed did it first, but their rationale was: “Historically, airdrop claims have caused network congestion, resulting in a suboptimal user experience as tens of thousands of users and bots rush to claim their airdrop. To provide the best experience and further recognize loyal Drifters, a unique bonus mechanism has been implemented.”

Drift’s vesting was only 6 hours which aligns with the rationale.

What is the rationale for 7 days for Zeta and 14 days for Sanctum?

There isn’t any other than interfering with the price discovery.

Anybody who bought Zeta tokens during their 7 days vesting got destroyed.

The same would happen with Sanctum’s $CLOUD buyers.

This is not healthy.

LFG should seek to improve price discovery, not interfere with it.

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im not a fan of their wording as a 14 day vesting “bonus” bc lets be real, its not a bonus, its like telling you, you either get your ordinary airdrop or half of it.

Its like being told. by your boss at your minimum wage job “Ill pay you half you wage now or you can choose to have the rest of it later”

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The entire launch is designed a certain framing.

Are you Sanctum-Aligned, or Sanctum-Curious.

The vesting you speak of, is so that everyone makes a choice of buying on the market (curious) or the vault (aligned). If the goal was to artificially inflate the price, the solution would be lockup + vesting. instead, it went for bonus airdrop.

If the price pumps, you have the ability to claim your tokens and sell. for example, if the price is up 500% on day 7, you can claim 75% of your max allocation and sell that on the inflated price.

This is contrasted to full lockup, where you are locked in and can’t access the token until the 14th day.

The long bonus duration (14days and 180days) ensures that buyers on the market has sufficient time to trade the token before people sell. In contrast, there was 0 incentive to buy drift in the first 6 hours because the 6 hours window was too short.

We know that LFG is a battletested platform who survived the 900K airdrop for JUP, we’re not worried about network congestion. Instead, we leveraged the same idea to compensate for being long-term orientated.

Ultimately, the goal here is to ensure that:

  • Long term minded people are rewarded
  • curious folks are not locked up against their will, and are able to claim and leave at anytime. (while receiving a reasonable bonus based on how long)

On the price discovery front:
Instead of a normal LFG curve which is X - Y, sanctum did $1M to $500M. Theyve ensured fair price discovery between $1m and $500m, in the first 3 days (where they can’t withdraw), which is more than past projects (including JUP) has done.

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Thanks for sharing this perspective :call_me_hand:

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Taking half of people allocation hostage and calling that “Sanctum-Aligned” is pure hypocrisy.

LFG already has a problem where most projects gradually decline after TGE.

And you’re making it worse by

  1. Increasing staring price as there is not enough tokens to sell.
  2. Making decline steeper as tokens keep entering market for 6 months straight.

Meow made a mistake by allowing this to happen.

Buyers will get hurt, again.

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I’m curious why this LFG project is not available to people in the USA? I don’t understand the reason for a restricted LFG launch. I think If we knew of these types of restrictions before voting it would definitely help.

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This is how to think about your allocation:

The numbers shown on allocation page can be claimed immediately after TGE.

HOWEVER, you get up to an additional 100% BONUS for waiting to claim for 14 Days/180 Days.

If that makes you mad, you’re in for a lifetime of disappointment, as this is as “Free” as $ will ever get. Sorry.

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Ask Gary Gensler who is the head of the SEC. Cause he’s the one making this necessary.

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It’s a 100% bonus. Your allocation can be claimed at TGE.

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I’ll get him on the phone right away :joy::laughing::joy:. But seriously, I get that the USA SEC is ridiculous. I’m not a fan.
I just wasn’t sure why the previous LFG launches don’t have these restrictions and now some voters can’t participate.

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11

Sorry, I’m just the messenger but I would look at cough VPN tech cough

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As an impartial neutral that did not pay too much attention prior, or lets say as a first time deeper reader it is not just that the “bonus” wording made me stumble while reading but it is a general theme.

Like there are words that have safety utility or disguise utility. I know from experience in DePIN that sometimes “bonus” has safety utility. As in saying you get X amount of weekly rewards fixed baseline, and then there is an addition metric, staking mechanism, multiplier, whatever that gives a “bonus” reward. That is basically said to create the safety of this not being a long term granted thing, or even has in some countries tax beneficial implications especially when connected to a claim option. Furthermore it gives safety on technical difficulties as well, it is not what you regularly are owed but more of an added bonus. While trying to explain that I realize that I am two coffees short of giving this the best sense.

What I actually want to line out is that while “bonus” can have safety utility or even “educational comms” utility, there is the before mentioned disguising utility, and here it reads really like the latter.

And while it is mostly gut-feeling or super subjective, I felt I stumbled over a lot of things in the wording like that. The “dynamic” part on Airdrops also reads that weird.

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While you are at it and have Gary on the phone, please tell him to take a break and remember to call Elon. Maybe that gets him distracted.

You are not a fan? Really?

I wonder if anyone is a fan… :joy:

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Says not even available in my region. Wont allow comment on X. Seems shady to me. Definitely lost interest.

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Just use a vpn man. I based in Australia and it worked, so try the AUS vpn

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with airdrop n sell effects being the standard mind frame, whether these peeps knew or not, they were hurting the price of the coins representing the hardwork of devs and almost insulting the free asset gifted to them. Farming, my ass by the way, unless clear guidelines announced. Drift was actually, other than MEW from phone, that actually rewarded me an airdrop, i did use it OG, but not alot at all. airdrops are not new territory, how to keep them an actual functioning tool is. win/win doesnt mean a damn thing after a single loss totalling more than any amount of wins. Testsinf phase 3 in effect, but with an additional effect of liquidity to a degree or 3.1

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I’m in Australia too and it worked for me. Although I use a VPN and have it set to somewhere else in Australia.

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n the land of Oz, where kangaroos leap, A user found a trick to keep. With VPN set, they roam the net, Like cats in space, no bounds to fret.

“Australia’s home,” they proudly say, “But my VPN leads me astray.” From Sydney’s lights to Perth’s far coast, They surf the web, a digital ghost.

With memes and gifs, they blaze the trail, Like cosmic cats with comet tails. “Success!” they purr, in zero-G, Their VPN, the master key.

So here’s to you, in space and land, With VPN in paw, so grand. May your browsing be smooth and free, Like cats in space, eternally.

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Great work @Merlin-M-Ostermann.

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