Investor Protection Program. A New Era Of Secure Investments is here
With the recent movements in the crypto world, and with many new members joining its community, Synapse Network reaches for even higher peaks regarding the well being of its userbase.
Since the inception of our project, the Synapse Network team has always prided itself on the transparency behind each of its movements, and the amount of effort put into the betterment of the DeFi ecosystem, starting from key issues like community protection, advantageous tokenomics, and carefully implemented long term strategies.
That is why, after assessing the current market situation, we have put together a new set of standards for our community members, each one of them covering some of the pitfalls that are being opened in the DeFi ecosystem as we speak.
Many projects are facing difficulties, either having to lower their quality standards or having to cut previously announced introductions, meaning that their investors aren’t receiving the full benefits that they could.
The Synapse Network launchpad has always had incredibly strict requirements for the project to join, but we felt that in this period of unrest, we needed to not only give the best possible opportunities to our community, we also needed to actively protect them from bad investments, and from this conclusion, the Investor Protection Program has been born.
But what does that actually mean for our community members?
- For starters, we will be ramping up our quality control procedures to ensure that no stone is left unturned while checking out the possible issues an applicant project may have.
- Then, we will be adding multiple additional criteria to projects that have already joined Synapse.
- We have introduced a new set of internal rules for our partners to ensure that the Network as a whole will be focused on the same task of improving community standards.
- Projects that skirt the rules or don’t follow regulations will have to give back to the community all or part of their investments, depending on the severity of the infraction.
With those new standards, the Network has taken one more step to ensure its stability, and we will be seeing the effectiveness of those changes very soon, with the multiple new introductions to Synapse being just around the corner.
From the other side of the matter, we have also devised countermeasures to increase our staking efficiency. We are sure that many of you have noticed the explosive growth of our community in this Q1 of 2022, and with this plethora of new members, we have risked incurring a very common and yet insidious problem for our staking pools: Inflation.
Just like our token burning event had the objective to combat deflation, we will now be reducing the APR of our Staking Pools to combat the opposite issue, with the majority of our veterans having already seen the value of Synapse’s Staking method, and the new members coming in just now still able to enjoy our 70% APR, the highest among all of the launchpads on the market even after the recent reduction.
Those new introductions are all made to ensure the best possible experience for our community, our investors and our partners, offering security, stability and value never before seen in the DeFi ecosystem, to create better standards for the space as a whole.
Below we will be going over a detailed list of all the changes implemented :
- The Synapse Network will require all projects to maintain their token price above IDO price until 41% of tokens from the IDO Sale have been distributed or for 7 days from the listing, in case the project released more than 41% of their total tokens on the listing day. The same rule also applies to the public rounds.
- If the project is listed on a decentralized exchange, the amount of locked liquidity should be at least $200k and the minimum lock-in time is until the vesting schedules for private rounds end. In case the project raised less than $3million total the liquidity may be proportionally lower, but never less than $100k.
- We will not tolerate cases in which the liquidity pool from tokenomics is sold by the project itself under any kind of excuse, like building up their initial liquidity or other malpractices harmful to the actual investors.
- The Synapse Network will greatly increase its efforts to obtain and share information amongst other top-tier launchpads about known investors who are known to dump tokens on the market in harmful ways. In addition, we will actively support projects to eliminate seedy VC funds contributing to excessive price dumping during the project’s most crucial phases.
- The Synapse Network will make sure all projects provide the smart contract addresses for their vesting pools such as marketing, team, advisory, etc. for active monitoring.
- We will require all projects to pass strict security audits to avoid over-centralization and blacklisting/honeypot features.
- The Synapse Network will require to shorten the time between the IDO/Public round and the listing date as much as possible. If the listing is significantly delayed or postponed, the funds will be returned to the investors and the IDO/public round will be repeated on a date closer to the listing one.
- If the project makes negative tokenomic changes for the investors between their IDO/Public rounds and their listing, this may result in a 100% refund of the raised funds.
- All projects must present a solid strategy for the provision of a single place to transfer 100% of their tokens to all launchpads at the same time. Many times we have encountered a situation in which tokens were distributed at different times for various launchpads. We will always insist to implement those changes for easier access.
- The Synapse Network will reserve the right to do a full or partial refund in the following cases:
- the project performs malicious movements or acts in harmful ways
- there is a critical technical issue with a project itself
- there are significant concerns about the integrity of the project team
11. The Synapse Network will intensify and deepen the collaboration with other top-tier launchpads to eliminate fraudulent behaviours and develop common standards shared between the DeFi ecosystem.
12. We will require various tokenomics improvements to the projects aiming to eliminate wide price differences between rounds. In extreme scenarios and depending on the base tokenomics, we will allow projects with a maximum difference of up to 5x between rounds, but these will be exceptional cases. Just as an example — Animal Concerts had a 4,5x difference between rounds and still performed very good and achieved a more than stable 6x price above their IDO round.
13. We will be watching all project transactions very closely to spot any signs of fraudulent behaviours, especially for transactions conducted during the initial post-listing period. In case of any unusual and suspicious behaviours, we will expect an explanation from the project itself.
14. Due to the different characteristics and the uniqueness of the projects themselves, alongside the inherent high risk/high reward ratio associated with the earliest IDOs/public rounds, the points stated above won’t be implemented in toto for all the projects.
The new set of rules will start taking effect on 01/05/2022 at 18:00 UTC, signifying the crystallization of more than a year of growth, and a new chapter opening for the Synapse Network and our community.
As always, we are looking forward to this growth, ensuring that we match it with our own, reaching new peaks of quality and empowering the crypto ecosphere by leading from the front of the DeFi Revolution.
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.