The Tapmydata Token Event – how Balancer works and how to participate on December 17th
–– 11 Dec 2020
TAP is excited to launch the TAP token IDO via Balancer’s Liquidity Bootstrapping Pool (LBP).
In this post, we outline how the Balancer LBP platform works and how to participate in the TAP IDO.
TAP Quick Recap
- The Tapmydata solution is a framework of tools, ledger, and decentralized protocol for people to reclaim their digital identity, crystallize unique, verified elements of consent in an NFT and provide a new, transparent channel for legitimate counterparties to blend data and exchange value.
- Data is Destiny: Our mission is to give people control of their data and leverage collective agency in how it’s used, whether to share or get their piece of a market worth $325Bn annually. This forms a critical pillar of the new trust economy that is replacing the data silos of The Old Web.
- The TAP token is the utility and governance token for Tapmydata and has been used within the Tapmydata app for over 2 years, originally running on the Stellar protocol. You can track the token provenance here. The TAP token within the app will be swapped for our ERC20 TAP token in Q1 2021
- Read our Whitepaper on Gitbooks here
What is a Balancer LBP (Liquidity Bootstrapping Pool)?
A standard Balancer pool is a customizable Uniswap-like protocol that supports up to 8 assets in the pool with preset weights.
Balancer’s Liquidity Bootstrapping Pool (LBP) is a special kind of Balancer pool that automatically adjusts its pool weights over time. This applies downward price pressure on the token and disincentivizes bot front-running, speculation and whale buying.
Ultimately, we believe this approach lives up to the DeFi ethos and results in a fair distribution for the following reasons:
- No FOMO: the declining price mechanism of the LBP allows interested users to wait until they are comfortable with the price before acquiring tokens. No need to rush or FOMO in.
- No bots front-running: Because the price declines over time by design, bots are also disincentivized to front-run or snipe transactions. If a bot purchases TAP tokens immediately at the start of the LBP, the changing pool weights will cause the TAP token price to drop below the initial acquisition price.
- Price discovery: similar to a Dutch auction, users have a long time window to acquire tokens at a price they find attractive. The community then collectively decides over the sale period what the final valuation will be.
For any blockchain projects looking to integrate/collaborate with Tapmydata reach us at firstname.lastname@example.org