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PancakeSwapPancakeSwapby0x3e8734Ec146C981E3eD1f6b582D447DDE701d90c0x3e87…d90c

IFO participation fee change

Voting ended over 4 years agoSucceeded

I want to adress a very big flaw in the current IFO system, with the IFO participation fee structure being following:

Overflow Multiplier Participation fee

    10x                 1%
   50x                0.5%
   100x               0.3%
   250x               0.25%
  +500x             0.20%

So if there is x500+ overflow the fee is 0.2%. The current IFO DKT, there was x2000 overflow and 0.2% participation fee.

Total comitted is ~633 337 022$, that means the current fee (0.2%) for participating was total: 1266674$

175000 DKT tokens released currently trading at ~8$ which is 1399986$, then have to deduct the original price at 1.75$ for 175000 DKT tokens which is 306250$. Currently participants in the unlimited sale have a total token net value at ~1093736$ lets say 1100000$ for simplicity. And the participation fee was 1266674$ so currently everyone who participated in the IFO is at loss, despite DKT token doing more than x4 the original buying price.

Clearly it does not make sense to continue with this model, there needs to be more tiers to the overflow ladder and I would suggest this model:

Overflow Multiplier Participation fee

    10x                 1%
   50x                0.5%
   100x               0.3%
   250x               0.25%
  500x               0.20%
  1000x             0.15%
  1500x              0.10%
  2000x            0.05%

Burning CAKE is great, but IFOs are extremely important to motivate CAKE holders to keep holding the tokens and not just selling. In order for this to happen IFOs has to be profitable and cannot be like now where buyers loses money despite the token doing x4 from sale price. I also think its important that Pancakeswap have IFOs more frequent, I would even say twice per month since its a very big burner and we also have one of the biggest communities in whole defispace + an exchange so why wouldnt projects want to run IFOs via us? Its also massive added value for holders since emissions cut down APRs a bit this is a way to keep the token attractive.

So for my suggestion, I want to create a vote that we change the overflow multiplier model to the new one I suggested so in cases where overflow is x1000-x2000 the fee wont remain 0.2% because it puts participants at a very huge risk of losing their investments and will make the IFOs less attractive and make CAKE holders less interested in keep holding the tokens.

Remember ALL participants lost, small, medium or whale, everyone who currently participated in the unlimited sale is at a loss despite the token performing more than 400%+ since the raise. Good part is the fee is CAKE burned, but I think IFO participants should be making a profit or it makes no sense to keep running IFOs. So lets make a vote about the new participation fee model as I suggested above:

If you agree, please vote YES If you disagree, please vote NO.

Thank you for your time.

Off-Chain Vote

YES
3.72M 100%
NO
0.11 0%
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Timeline

Oct 29, 2021Proposal created
Oct 29, 2021Proposal vote started
Nov 01, 2021Proposal vote ended
Oct 26, 2023Proposal updated