Magnet DAO Public Sale on Dec. 28th!
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This article will cover everything you need to know about when the sale is and how it will be structured.
Magnet DAO Public Sale FAQ:
When is the public sale and where will it take place?
The public sale starts on December 28th at 5pm UTC. It will happen on our protocol website at https://app.magnetdao.finance/
How long will the sale last?
The public sale will last 48 hours or until $10 million MIM is contributed.
How many tokens will be for sale?
We will be selling 4 million bMAG. Below is a comprehensive breakdown of our fully diluted supply at launch. For more info, please see check our website.
What is bMAG?
bMAG is an NRT token (Non Transferable Token) which means it cannot be transferred or used to supply liquidity — it can only be redeemed. The reason we are using an NRT token is to prevent non-approved liquidity pools from being launched prior to our official listing, which we have seen become an issue in other projects.
bMAG will be redeemable 1:1 for MAG after the protocol is launched. Please see “Will there be a vesting schedule?” for more details on bMAG redemption.
Will everyone be able to participate?
Everyone will be eligible to participate (there is no whitelist), but we will be stopping contributions if we reach $10 million MIM deposited. Therefore, there is a chance that the public sale sells out.
What will the price of bMAG be?
The price will be dynamically determined by how much MIM is contributed to the vault. The minimum price will be $0.80 per bMAG and the maximum price will be $2.5 per bMAG.
Price = $ MIM deposited / 4 million bMAG
Minimum price: $0.80 per bMAG
The price will start at $0.80 per bMAG — the same price as our community offering, and will remain at $0.80 per bMAG until $3.2 MIM is contributed. Once $3.2 MIM is contributed, price will begin to increase as a linear function of how much MIM is deposited.
Maximum price: $2.5 per bMAG
Once there has been $10 million MIM contributed to the vault, the vault will then lock and users will no longer be able to withdraw their deposited MIM. The price at this max contribution will be equal to $2.5 per bMAG.
The implied price will fluctuate throughout the duration of the 48 hours, but it is important to note that every person who participates in the public sale will receive the same price, as the purchase price is determined by the final amount of $ deposited into the vault at the completion of the sale. Below is a simple graph of how the price function will work. No matter when you deposit your MIM, the price will be the same for EVERYONE. It is calculated at the conclusion of the public sale.
What is the market cap of MAG at these prices?
MAG will have an initial total supply of 10 million MAG — you can see our tokenomics breakdown on our website. Circulating supply at launch will be 8 million MAG since 2 million team tokens will be locked. Fully diluted supply at launch will be 10 million MAG.
Thus, below are the minimum and maximum prices and market caps
Minimum market cap:
- Minimum price = $0.80 per bMAG
- Minimum circulating market cap = $0.80 * 8 million MAG = $6.4 million
- Minimum fully diluted market cap = $0.80 * 10 million MAG = $8.0 million
Maximum market cap:
- Maximum price = $2.50 per bMAG
- Maximum circulating market cap = $2.50 * 8 million MAG = $20.0 million
- Maximum fully diluted market cap = $2.50 * 10 million MAG = $25.0 million
While the public sale is ongoing, we will have a dashboard clearly displaying the price of bMAG, implied market cap at that price, etc.
When can I claim my bMAG?
bMAG will be claimable immediately after the conclusion of the public sale.
I was in the community offering and I have aMAG, what do I do?
We will be airdropping an equivalent amount of bMAG to everyone who owns aMAG. For example, if you own 1,000 aMAG, you will receive a 1,000 bMAG airdrop. The airdrop will occur in advance of our public sale. We will make an announcement in Discord when this has been completed. This will also show the token address so you may see your balance. The bMAG contract will be posted on our website.
Why a new token? bMAG is what we will use in the public sale anyway. By airdropping bMAG, you won’t have to do the transfer of aMAG to bMAG yourself so it saves a step. bMAG is also a more flexible token which allows us to implement staking while vesting.
Will there be a vesting schedule?
We decided to implement a 1-week vesting schedule for both the community offering and the public sale in order to reduce initial volatility at AMM listing. All bMAG sold or airdropped will be vested over the course of 1 week following our protocol launch. Tokens will vest like a bond, with the redeemable balance increasing every second over the course of the 7 days. I.e. a total of ~14% of your bMAG will vest daily.
Your bMAG will be staked the moment the Magnet DAO protocol launches, and will continue to be staked while vested until you claim your bMAG. Thus, your pre-sale and public sale tokens will still reap the benefits from the staking APY and will not be diluted.
More details on our reasoning in “Other FAQ”.
What are you doing with the proceeds?
- 80% to the Main Treasury
- 10% to the Innovation Fund
- 10% for liquidity providing
This means our Treasury Ratio (circulating market cap / treasury) will be equal to 2.22x at the conclusion of our public sale. (See calc in Other FAQ).
How will the deposits and withdrawals work?
Users will be able to deposit/withdraw MIM into the vault during the 48 hour sale period. The implied price will be displayed throughout the sale period, and if a user decides that they do not like the price, they can withdraw their funds with no penalty. Meaning they will not receive bMAG or be a participant in the sale. However, if the vault reaches $10 million in deposits, withdrawals will be shut off, and the resulting price for everyone will be $2.5 per bMAG. $2.5 per bMAG is the maximum price possible during this public sale.
Users will be restricted to a $10k per hour withdrawal limit. This is done in order to reduce “spoofing” where a whale might try to make the price seem high and then remove tokens right before the sale period ends, to shake out potential investors and achieve a lower price.
How much can I contribute?
The maximum contribution is $25,000 per wallet.
How to participate in our public sale:
- Have your wallet set up and integrated with the Avalanche Network: https://support.avax.network/en/articles/4626956-how-do-i-set-up-metamask-on-avalanche
- Have sufficient $AVAX in your wallet for any gas fees
- Fund your wallet with your desired amount of $MIM that you’d like to contribute
- MIM Contract: 0x130966628846bfd36ff31a822705796e8cb8c18d Click here to buy MIM with AVAX
- Connect to our app at https://app.magnetdao.finance/#/ with your wallet
- Hit the “Approve” button to allow your wallet to contribute $MIM
- We recommend doing this prior to when the sale starts, in order to reduce gas wars
- Deposit your desired amount of $MIM!
Other FAQ
When will you list on Trader Joe?
We will list our liquidity on Trader Joe approximately 24 hours after the completion of the public sale - on December 31st at 5:00pm UTC.
When will staking and bonding go live?
Staking and bonding will go live the second we list on Trader Joe.
When will the Innovation Fund start?
The Innovation Fund will begin immediately! It will be funded with 10% of the treasury proceeds from the public sale. DAO proposals will begin soon after using Snapshot.
What security practices have you put in place to ensure a fair and safe public sale?
Our team is working with well known and respected auditors to review our staking and bonding contracts. We’re working through that onboarding process and will announce the auditors and timeline very soon.
All contracts for the public sale will be verified and reviewable in advance of the start time. We have also gotten these contracts peer reviewed from experienced solidity developers to confirm these are secure.
Finally, our team has connected with two external parties to join our multi-sig, both of whom are highly respected in the crypto community / AVAX ecosystem. We are working on confirming details with those individuals before we make our public announcement, which will be done prior to the public sale.
Why is there a cap on the public sale total?
We decided to add a cap to the total proceeds from the public sale to bolster active capital markets during our AMM listing.
$10 million is a significant amount for us to bootstrap our treasury with, and we don’t feel the need to raise any more. At a $10 million raise, this will distribute our network across a significant number of participants at the same price for everyone. This model is contrary to other protocols which have launched with no treasuries and illiquid pools, leading to high volatility and price disparity/inequality for investors.
The vesting period wasn’t mentioned prior to the community offering. Why did you decide to add this?
After careful consideration, we will be implementing this mechanism to protect the protocol. Having analyzed other public sales and launches, we believe that this is the most optimal option for all investors. It will significantly reduce volatility upon launch, while also still allowing pre-sale and public sale investors to benefit from staking their MAG. Pre-sale participants entered at a low price per MAG and will likely achieve a high return on their investment, which should mitigate any concerns. Vested tokens will also be staked, mitigating any concerns regarding dilution.
Why is there a wallet deposit cap?
This was added to prevent whales from taking up too much of the raise, further distributing our network and the possibility of participation.
What happens if less than $3.2 million is raised?
If less than $3.2 million is raised, less than 4 million bMAG will be sold. The amount of bMAG that is sold will be equal to $ raised / $0.80. For example, if $2 million is raised, then the amount of bMAG sold would be $2 million / $0.80 = 2.5 million bMAG. The remaining 1.5 million (4 million minus 2.5 million) that was allocated towards this round would be sent to a burn address.
What is the minimum deposit amount?
There is no minimum deposit amount.
How do you arrive at a 2.22x Treasury Ratio at launch?
Since we are selling 4 million MAG (90% of which is going to treasury + innovation fund) and our initial circulating supply is 8 million MAG, we can simply take 8 million / (4 million * 90%) = 2.22x. Example below:
Say we raise $10 million MIM in the public sale. That means the price per MAG will be $10 million / 4 million = $2.5 per MAG. Circulating market cap at this price is $2.5 * 8 million MAG = $20 million. Treasury will be equal to $10 million * 90% = $9 million. So, $20 million / $9 million = 2.22x. You can check with other amounts raised, and this multiple will still hold.
Do you have MultiSig wallets?
Yes, we do. Our team funds raised from our Community Offering are in a MultiSig, and the wallet used for the Innovation Fund is set up as a MultiSig as well. Gnosis safe links below. We will be adding additional signatories to these safes prior to launch, including our third-party advisors.
Magnet DAO Operations (Team Funds): https://snowtrace.io/address/0x0e93e7ef52dcc294d4f7e3d3c90e34126d59d57a
Magnet DAO Innovation Fund:
https://snowtrace.io/address/0x0e369f58fefa2275a7a8eba18e9f4cf5ca7c4086
IMPORTANT — PLEASE READ
Please be aware that there is a possibility that fake MAG tokens are created. Do not purchase anything that is not posted on our official socials / website. We are not going to be stealth launching and you will know well in advance when we add liquidity to Trader Joe. Please also be aware that Magnet DAO Team Members will never reach out to you first. Always ensure you have the right token address and website URLs. All information will be posted via Magnet DAO official platforms:
Website — https://www.magnetdao.finance/
Web App — https://app.magnetdao.finance/
Twitter — https://mobile.twitter.com/magnet_dao
Discord — discord.gg/MagnetDAO
Telegram — https://t.me/magnetdao
