- simplified, flat system (allocation point per every 100* SNP staked)
- no need for tier recalculation
- most of the investors gain by this change
- linear incentive to buy more/restake every token
- just two tiers (below 10 000* SNP, and above 10 000* SNP)
- reset of the current tiers
- new tier system replaces the old one, starting from Arcade Network Sale (03.10.2021 9:00 AM UTC)
- APR on stable level from now on — 30% for SNP and 100% for LP
- Not used tokens from staking/lp rewards will be stored to make sure we can provide a stable APR level for much longer.
- minimum tokens threshold is 1000 SNP tokens.
It’s been over 1 month since the listing of Synapse Network and during that time we’ve been able to get a lot of valuable feedback from our community. Since in Synapse Network the community is the heart of the project and everything is done with that precept in mind we decided to introduce solutions that were often directly mentioned by you.
The main comments we received from you were:
- the tier system is too complicated — many people had problems understanding the difference between the number of SNP tokens from the value of SNP tokens in dollars.
- it is too difficult for small investors to increase their tier. This was often associated with the need of an additional 100% investment of funds to get an additional tier.
- the need for manual recalculation of tiers.
- no incentive to buy/restake more tokens, as the various tier thresholds are too steep.
- decreasing allocation size.
- too high APR that creates a massive token dump.
We have introduced two investor groups (tiers):
- standard (own about 16% of SNP tokens in stake)
- premium (own about 84% of the SNP tokens in the stake) where the threshold for investment is to hold 10000* SNP tokens or their equivalent in liquidity.
We have introduced a new allocation distribution system, called Allocation Points, valid regardless of group, which is reached after obtaining a multiple of 100 SNP tokens (or the equivalent of liquidity), for example:
- 571 SNP tokens — 0 Allocation Points (minimum is 1000 SNP to get Allocation Points)
-1231 SNP Tokens — 12 Allocation Points
- 1751 SNP tokens — 17 Allocation Points
- 71100 SNP tokens — 711 Allocation Points
If a project collects a significant amount in a given investment round, we use the following distribution*:
- 35% of the funds will go to the standard group, where the guaranteed allocation is going to be distributed according to their Allocation Points.
- 65% of the funds will go to the premium group, where the guaranteed allocation is going to be distributed according to their number of Allocation Points.
For example, a project raises $100,000, in the premium group we have 2 people with a different number of Allocation Points:
- investor 1–1000 Allocation Points (i.e. at least 100,000 SNP tokens)
- investor 2–3000 Allocation Points (which is at least 300 000 SNP tokens)
65% of 100,000 or 65,000 will go to the premium group and is divided proportionally to the share:
- investor 1 — receives 25% ( his 1000 Allocation Points / 4000 Total Allocation Points ) of the $65,000 allocation
- investor 2 — receives 75% ( his 3000 Allocation Points / 4000 Total Allocation Points) of the allocation of $ 65 000
In the standard group, there is 35,000$ to be divided. Here we have investors with the following number of Allocation Points:
- investor A —10 Allocation Points (i.e. at least 1000 SNP tokens)
- investor B — 12 Allocation Points (at least 1200 SNP tokens)
- investor C — 15 Allocation Points (i.e. at least 1500 SNP tokens)
Accordingly, the $35,000 allocation is divided as follows:
- investor A — 10/(10+12+15) = 10 / 37 = $9459$
- investor B — 12/37 = 11351$
- investor C — 15/37 = 14189$
As you can see from the above example, especially in the standard group, every 100 SNP translates into an increased allocation. We have made various simulations that show that most of the investors will benefit from the changes we have introduced.
The same rules will apply to projects with small allocations when the total amount is not enough to be guaranteed for individual investors. In this situation, the described SNPs process will be applied to the draw.
In addition, in the near future we plan to introduce other gamification elements related to Allocation Points that can be earned for, among other things:
- promoting actions on social media (like, retweet, follow)
- restake of tokens obtained thanks to the high APR
- participation in investment rounds
- staking for a long time
- and many others :)
Nothing is going to be modified for the VC Tier.
We want to thank all the users that suggested we look into a better tier system: this change was possible only due to the insight of our community members, who spotted room for improvement in the project and moved rapidly to let us know what we could polish. Our team has been more than happy to receive this feedback and act on it, as it will result in better conditions for our investors, as well as a more streamlined method that will put less strain on the platform.
We are proud to see that our community presence is so active in the shaping of Synapse, and we plan to keep polishing our ecosystem together to create the best possible product for all of our users.
Transparency is one of our core values, so stay tuned to our announcement channel and we will be keeping you updated every step of the way!
* — this may change depending on market conditions.
About Synapse Network
Synapse Network is developing a cross-chain investment and start-up acceleration ecosystem based on blockchain technology to give everybody an equal chance to contribute to great upcoming projects and to do so early on. We are bridging the gap between the traditional & crypto market. The idea of the Synapse Network technology goes beyond the standard offer of launchpads available on the market, becoming a true technological brand providing tech solutions.