CLAP utility tokens are at the core of the Cardashift product ecosystem. They give it the fuel to survive and thrive.
All Cardashift products — from our initial launchpad for impact investment projects, to our exciting future products — will be based on CLAP tokens.
Here we’ll take a look at some of the functional and economic mechanisms that will drive CLAP token price appreciation. (For more detailed information, please refer to the White Paper.)
The token has two superpowers:
- It rewards those who own it (§1 - The advantages of holding CLAP tokens)
- It enables the selection and financing of projects (§2 - Empowering impact project leaders with CLAP tokens)
If you read to the end of this article you’ll find out about the Initial token allocation, Vesting Periods, and our Public Sale. (§3 - Characteristics of the token)
1️⃣ - The advantages of holding CLAP tokens
CLAP token holders are part of the Cardashift community, which comes with several advantages. The token’s utility will evolve with the ecosystem; it will become ever more useful and valuable. Each new product (Wallet, DEX, …etc.) will bring new benefits for holders.
💪 Becoming a decision-maker in project selection
In line with its vision of a world of decentralized governance, finance and investing, Cardashift allows CLAP holders to vote on whether to accept a project onto the launchpad or not.
They will be able to stake their CLAPs on projects and share opinions on which ones they like best. This staking will be valued at 7–8% annualized.
CLAP holders are not only investors, they are part of an impact-driven community.
Stay tuned for our next article on how this community-based selection process works!
☝️ Privileged access to ‘high potential’ Initial DEX Offering (IDO) fundraisers
Get whitelisted…
Given that only CLAP holders will be able to vote on projects, they will also be the only ones who will be whitelisted. Everyone who votes for a project that ends up being selected for fundraising will be whitelisted.
…and invest without fees…
Moreover, when participating in IDOs, CLAP holders will be able to invest in projects free of charge. This gives them 4% more purchasing power than those who invest in other cryptocurrencies.
…in high potential projects
CLAP holders will have the opportunity to invest in very promising “high potential” projects, which will receive long-term support. From the first half of 2022, CLAP holders will have access to very attractive ICOs for high potential projects that will have a meaningful environmental and/or social impact, and are designed to bring success to both investors and project leaders.
🤝 Governance of the treasury
All CLAP holders will be able to contribute to several Cardashift Treasury strategic decisions about:
- investing in projects
- forming partnerships
- paying development teams
- promoting ecosystems
Moreover, the treasury will provide token holders with incentive mechanisms like staking, airdrops, etc. These mechanisms are currently under development and will be set up in the second phase of the Cardashift development.
🙌 Holding a token that constantly renews its valuation methods
CLAP token supply will be steadily reduced, increasing scarcity and thereby supporting the token price. This will ensure the sustainability of the CLAP ecosystem:
- Some CLAP tokens will be frozen in the Liquidity Pool
- A 4% fee will be charged on other cryptocurrency investments, which will be used to buy back CLAP. These tokens will be directly transferred to the treasury.
- 1% of each transaction will be burnt to replenish the treasury.
Cardashift R&D is continually looking for new methods to make CLAP tokens valuable. Future models of token valuation will include:
- Liquidity Pool funding (CLAP tokens will be valued in the pool)
- Stake-to-earn funding (Only CLAP holders will be able to access the Stake)
- AirDrop funding (Only CLAP holders will benefit from AirDrop. The criteria used to define the eligible addresses will not be communicated in advance so as to limit the “pump and dump” phenomenon).
2️⃣ - Empowering impact project leaders with CLAP tokens
Working with CLAP tokens means being supported by Cardashift
We are creating the first launchpad on blockchain, to finance and accelerate businesses for climate change, social justice and development. We will rigorously select projects with these goals. (The selection process is detailed in our whitepaper and will be explained in a forthcoming article.)
Once an impactful project’s application has been assessed and accepted, several financing options will be offered to it. Each financing model values CLAP tokens in a unique manner.
The Cardashift team will support the project leaders throughout their fundraising. We will help projects benefit from CLAP tokens as much as they can, through :
👉 the choice of an adapted fundraising model.
👉 the creation of the project’s token, which will be based on, and linked with, the CLAP token.
👉 the valuation of project token thanks to CLAP tokens.
Financing model tailored to the needs of impact projects
We will start with the Initial DEX Offering (IDO) financing model. An Initial DEX Offering is a fundraising approach that pools capital from investors.
In our case, impact project leaders will create a token for their project hedged against CLAP tokens — which will ensure its stability and viability. A portion of the project tokens will be sold on the launchpad before the market launch. For investments in other cryptocurrencies, we will buy back CLAP tokens before giving them to project leaders. In the latter case, they will hold only CLAP tokens, which will facilitate and secure their fundraising. (They will not face all the fluctuations of all cryptocurrencies invested).
Finally, project leaders will send their tokens to the addresses that invested in the project on the launchpad according to pre-established rules. Their funds raised will be invested on-chain and given to project leaders according to the objectives’ realization.
We are also truly interested in developing other highly decentralized financing models
They are innovative ways for creating value, to enhance the traditional finance options.
In the future, we will offer financing models for projects such as :
- Liquidity Pool (https://coinmarketcap.com/alexandria/glossary/liquidity-pool )
- Stake-to-Earn (https://coinmarketcap.com/alexandria/glossary/staking )
- AirDrop (https://coinmarketcap.com/alexandria/glossary/airdrop )
Under these models, the project leaders will not get money through a basic fundraising in exchange of their token. However, they do ensure their token’s decentralization within a community, which means the token will be periodically traded and, thus, appreciated over time.
3️⃣ - Characteristics of the token
➡ Initial token allocation
CLAP tokens are based on the Cardano Blockchain. There will be a total of 1 billion tokens (including reserve). The billion CLAPs will be split between locked (80%) and circulating tokens (20%). Initially, we will allocate the supply as follow:
➡ Vesting Periods
The tokens sold during the Flash and Public Sales will be directly available. However, that’s not the case for all tokens. Each allocation has its own vesting rules:
- The tokens allocated to ambassadors, communication, partnerships and in private sales, are fully locked, then 50% will be released after 6 months and 50% after a year.
- The tokens allocated to the team are fully locked for 24 months, then 25% will be released per semester.
- The treasury will be initially locked. After a year, it will be governed by the community as a Foundation or a DAO (for which terms of governance will be detailed later).
These rules of release are displayed in the chart below:
➡ Token sales
We have already successfully raised $1.5M in a private sale! Encouraged by this success, we are preparing an ICO to raise $8M in the coming weeks.
The 200 000 000 circulating tokens will be sold in exchange for ADAs. The sale will be conducted in two phases: a flash sale and a public sale.
* We reserve the right to modify this rate before the sale in the vent that ADA volatility alters our forecasts significantly
👀 The dates and conditions of sale will be announced very shortly! Stay tuned! 👀
Join our Discord and Telegram to be the first to know our news.🔥
You can also follow us on Twitter and learn more about us on our Website.⚡️
Written by Anaïs Bouchet & Yannis Baala — Impact Projects Managers and Medium Enthusiasts
