Initial RollApp Offerings: From Token to Ecosystem

A new way to create tokens is set to launch with Dymension’s 3D upgrade.

Dymension

Dymension

— 3 min read
Initial RollApp Offerings: From Token to Ecosystem

A new way to create tokens is set to launch with Dymension’s 3D upgrade.

Initial RollApp Offerings (IRO) allow anyone to create and participate in early trading of RollApp tokens before the RollApp officially launches. Funds from this early token trading period are used to seed liquidity when the RollApp goes live.

IRO Tokens

As part of the RollApp creation process, RollApp creators can choose to launch an IRO by allocating a portion (or all) of the token supply for the initial trading period. Creators then input the amount they are targeting to raise and select a bonding curve function which constantly adjusts the price based on the number of tokens bought and sold.

  • IRO tokens each have their own ERC contract representation and may be transferred and used just like any standard token.
  • IRO tokens act as RollApp token futures. Once the RollApp is live, users can exchange their IRO tokens for native RollApp tokens on a 1:1 basis, seamlessly transitioning from IRO future to native token of a chain.
Each token on the bonding curve has a designated price for buying or selling. For example, on the ‘Exponential Growth’ bonding curve, assuming the creator opts for a target raise of 100K DYM and allocates 1B tokens to the IRO, the 600M token is priced at a little over 0.0001 DYM, the 1B token (last token) will be priced at 0.00025 DYM. Alternatively, if the creator selects the ‘Fixed Price’ curve function (with the same target raise of 100K and 1B IRO allocation), each token would sell at a constant 0.00001 DYM, regardless of the number of tokens sold. Regardless of the selected bonding curve, if all 1B allocated tokens are sold, the amount of DYM raised is equal to the creator’s target raise configured in the RollApp creation process (100K DYM in this example).

RollApp Creation Process

  1. RollApp registration: Creators start by registering their RollApp information onchain by providing essential information such as the domain, tokenomics, socials, website and more. This information is made publicly accessible, ensuring transparency for potential IRO participants.
  2. Token allocation: A percentage of the total token supply is allocated for the IRO. To receive the Fair Launch tag on the Portal, creators must allocate 100% of the tokens to the IRO, ensuring equal opportunity for all holders.
  3. IRO launch: IRO tokens are priced based on a custom bonding curve. The IRO process enables creators to select a curve that best suits their goals.
    - Fixed Price: The price remains constant throughout the IRO.
    - Linear Growth: The price increases steadily as more tokens are sold.
    - Logarithmic Growth: The price increases rapidly at first, then stabilizes over time.
    - Exponential Growth: The price rises at an accelerating rate.
  4. Deploying a RollApp: The final step for an IRO token is to be exchanged for the actual RollApp token once the RollApp is launched.

Liquidity Bootstrapping Event

As soon as the RollApp launches users can easily claim the native RollApp tokens by burning their IRO future tokens at a 1:1 ratio. Simultaneously, the DYM raised is automatically used to create a liquidity pool for the native RollApp token, ensuring trading is available immediately upon launch.

The pool is seeded at the last traded price on the bonding curve, and any unsold tokens from the IRO allocation are distributed as incentives for liquidity providers, further strengthening the token’s liquidity after launch.

IRO as a New Tool for Creators

IROs are integrated into the RollApp creation process, enabling creators to launch token trading before the RollApp goes live. This gives RollApp projects an opportunity to build an initial user base and form an aligned community, while simultaneously establishing liquidity for the RollApp token using the funds from the IRO.

Alongside other Dymension features such as the seamless RollApp creation interface, the introduction of IROs completes a full package equipping creators with all tools needed to succeed. From idea to full-blown ecosystem.

The IRO is now available for testing: https://playground.dymension.xyz/
A full rollout on the Dymension Mainnet is coming soon as part of the 3D upgrade.

Let’s build the Internet of RollApps!