Completing the Token Distribution stage on MDAO Maker
MDAO Maker is a platform that enables users to allocate funds to projects in their early stages of development.
An allocation involves the distribution of funds by a project to its users.
The “early stage” of a project refers to the period when it is preparing to enter the market, resulting in comparatively low token values. As a successful project launches in the market, the token price appreciates, offering the opportunity to sell them at a higher value on exchanges.
For more information on the MDAO Maker platform and its benefits, refer to the article linked below.
The opportunity to acquire tokens at favorable pre-listing prices is highly appealing, which is why the MDAO Maker platform incorporates a milestone system. This system provides all interested parties with the chance to purchase the startup’s tokens.
Today we’ll tell you about the final step on MDAO Maker, which is part of the project allocation process.
Token Distribution Stage
What happens during the Token Distribution stage on MDAO Maker?
Each project on MDAO Maker has its own conditions for the distribution of tokens that users redeemed at the previous Allocation Payment stage. More details here.
When a project on MDAO Maker enters the Token Distribution stage, users wait for the token to be listed (released) on an exchange. You can find out the approximate TGE date (token generation event) of a project token on MDAO Maker on the page of a particular project in the TOKEN DISTRIBUTION DATE line.
Also here in the VESTING line are all the conditions for the distribution of the project tokens.
How do you read the vesting conditions on MDAO Maker?
Let’s look at how to find out the project’s vesting conditions using a specific example on the zkCross’s page on MDAO Maker:
- “TGE (10%)”
When a token goes public, all users who purchased tokens at the Payment stage will receive 10% of the purchased allocation on their MDAO Telegram Wallet.
- “3m cliff”
After listing (going public), the remaining tokens are held by the project for a Lockup Period — the time when the project “freezes” some tokens until the next distribution. Under the terms of zkCross, its tokens will be on hold for 3 months after the TGE.
- “Rest unlocked monthly during 15 months (6% each month)”
When the hold period ends, a linear vesting process begins — the phased distribution of project tokens to users’ wallets. Under the terms of kCross, every month for 15 months users will receive 6% of the purchased allocation to their MDAO Telegram Wallet until it is fully distributed.
Each project that joins MDAO Maker sets its own vesting terms. These terms can sometimes (rarely) change. Please note that all changes to the vesting terms are made by participating projects and are independent of MarsDAO.
What do I do when tokens are credited to my MDAO Telegram Wallet?
When project tokens are issued, they are credited to the user’s wallet balance on the network where the tokens were originally issued. For instance, if a project token is issued on the Ethereum network, it will be credited to the user’s balance on Ethereum.
Users have the option to store these tokens in their MDAO Telegram Wallet, transfer them to another non-custodial wallet, or sell them on platforms where the project token is tradable at the time of distribution.
When withdrawing tokens from the MDAO Telegram Wallet, it’s important to consider the network commissions associated with the transactions. If the token is issued on the Ethereum network, it’s necessary to have ETH in the ERC-20 network on your wallet balance to cover the network fees.
We’ve compiled essential information to assist you in various transactions involving project tokens. In the linked article, you can learn about paying network commissions when withdrawing tokens from the MDAO Telegram Wallet, withdrawing tokens, topping up wallets such as ByBit, MEXC, MetaMask, as well as navigating the process of finding tokens on Uniswap.
