Finding more ways to raise funds for DEX launch and MIN token launch, as launching on Cardano takes more time and cost than initially planned.
- In order to have a treasury, we need to launch our tokens along with yield farming, but we need to launch a high-performance DEX first. The token launch is expected to be at Q1 2022.
- Auditing cost of DEX contracts, batching contracts and yield farming contracts are around $150k-200k.
- Relying 100% on Catalyst means that we only get $5k/proposal/month. Even if we somehow manage to win all proposals and get all Catalyst funding at once and use all of it to pay for auditing without taking any for salary, it’s probably not enough.
- With current block and mempool size, even if we have a good idea, we still need more engineering hours to further optimize Plutus contracts, and some reliance on compiler optimization from Plutus team.
- With more VCs coming to Cardano, we need a way to stay competitive with VC-funded projects.
- In general, the time and cost expectation to launch has gotten bigger from when we announced FISO. Now that we know the final protocol parameters, the auditing cost and the Catalyst releasing schedule, we definitely need more funding from outside of Catalyst to supplement engineering capacity and pay for expenses until token launch.
There are a few ways to raise more funding without allocating tokens to VCs or private investors:
- Do an NFT sale. We collaborate with NFT artists and leverage Minswap’s popularity and branding to sell NFTs. We can expect to raise $100-200k after splitting profits with our partners.
- Selling 0.5-1% of our dev fund allocation. The dev fund is intended to be exchanged for cash for growing Minswap, so this would be a correct use of dev fund. Because we have reached a certain level of popularity, if we limit the maximum amount of buy by IP, wallet address or captcha (e.g. 1000 ADA), we can mostly avoid big allocations to whales and early insiders. The token distribution demographics would be about the same as if we distribute it by yield farming, or even more equitable since yield farming doesn’t have a whale limit. The public sale tokens can have no vesting, and thus incentivize buyers to become LPs on launch as there wouldn’t be any market to dump. This would also seed the initial market for MIN tokens from the community, and the team doesn’t have to dilute circulating supply to seed liquidity.
If we can raise adequate funding for auditing, we can withdraw our auditing proposal from Catalyst Fund6 to leave the slots for other projects that are more in need of seed funding.
What should Minswap do to ensure a quality product launch?
- NFT sale
- Dev fund sale