In the previous article, we introduced NFC (Non-Fungible Contract), the very first use case of Non-Fungible Contracts will be applied in the Initial Offering Treasureland.market’s native token TRSR(Treasure), which we anticipate to be an adventurous yet successful social experiment. Today we are going to introduce how to initiate or participate in the Initial NFC Offering (INO).
Projects that participate in INO must generate ERC20 or BEP20 token information and publish the ERC20 or BEP20 contract.
After publishing the ERC20 contract, the project owner needs to submit the ERC20 or BEP20 token information, together with the project information (name, website, description and etc.). Upon approval, the project will be displayed on the INO webpage.
Create a Fundraising Pool
Once the project is submitted, the project needs to create a “Fundraising Pool,” containing two categories of information.
The first category: NFT basic information, such as NFT name, picture, NFT description, etc.
The second category: fundraising configuration information, such as the type of token accepted for fundraising, hardcap setting, exchange ratio and etc.
Lockup the rules
After setting up the fundraising information, it is necessary to further set up the locking mechanism of the tokens in NFT.
Four Types of Lockup Patterns
After purchased, NFC can be unlocked and decomposed to ERC20 or BEP20 tokens any time.
For example, if an investor buys an NFC containing 1000 DEGO tokens, then he or she can receive these DEGO tokens at will after the purchase.
2. Unlocked upon maturity:
Set an “Unlock Time” for an NFC. After expiration of the Unlock Time, all underlying tokens will be unlocked and available to be transferred.
An investor purchased an NFC containing 1,000 DEGO tokens and the “Unlock time” was set on 1st May 2022.
Before 1st May 2022, all underlying DEGO tokens in this NFC remain frozen.
After 1st May 2022, all underlying DEGO tokens in this NFC are unlocked.
3. Linear Unlocking
Set the starting time and ending time, and the unlocking process will be performed in a linear fashion block by block.
An investor purchased an NFC containing 1,000 DEGO tokens, and these tokens are linearly unlocked from 1st May 2022 1 till 30th May 2022. 1,000 DEGO tokens will be unlocked continuously for 30 days from 1st May 2022 1 till 30th May 2022.
4. Interval Unlocking
Set the starting time, proportion and interval. Tokens in an NFC will be unlocked at a fixed interval at a fixed ratio from the starting time.
For example, An investor purchased an NFT containing 1000 DEGO tokens. The starting date 1st May 2022, the proportion is 10%, and the interval is 7 days.
Starting from 1st May 2022, that investor will receive 10% of the total amount of tokens purchased in every 7 days.
Withdrawal & Fees
Upon completion of a Fundraising Pool, the project owner can withdraw the cryptocurrency raised for projects. At the same time, the project owner may also withdraw the remaining ECR20 or BEP20 tokens from the pool if anything left unsold. The INO service will charge 1% of the total amount of cryptocurrency raised as the handling fee.
For example, if Project A raises a total of 2000 ETH, the INO service charge will be 1% of the total raise which means 20 ETH is charged as the handling fee.
Purchase of NFC
After the project owner creates a Fundraising Pool, a countdown clock for the time remained to purchase will appear. When the countdown is over, the subscription stage will start and investors can purchase NFCs for sale.
Withdrawal of Tokens in an NFC
After receiving NFCs purchased, please refer to different unlocking rules of different NFCs. When conditions for unlocking are met, investors can unlock underlying tokens in an NFC.
When an investor purchases an NFC, as long as that NFC holds tokens and is not fully withdrawn yet, it can be traded on Treasureland.market or any secondary market for NFTs.
AN NFC ceases to exist after decomposition while all underlying tokens are withdrawn.