The world’s first Dynamic Token Offering (DYCO) debuts as Orion Protocol becomes the first blockchain project to adopt the DYCO, a framework by blockchain technology licensor DAO Maker. With about $3.45 million raised in a triple-phase sale, Orion had announced the completion of its fundraising in under two weeks while being oversubscribed by 300%.
The token sold out on a first-come, first-serve basis as participants engaged in gas wars to outsmart each other in a race to get a portion of the ORN token. As a result, some participants were paying over 1 ETH in gas fees, with one forking over 4.7 ETH ($1,550) to get in front of other investors. The last time we witnessed such a bubbling interest in smart contract-based sales was in 2017. No doubt, the DYCO is rewriting this chronicle in a more fascinating way.
With This New Model, Investors Have A Safety Net
Orion’s token sale’s landslide success is built on the fundraising model that guarantees investors to seek a refund should the ORN token trades 20% below its issued price. Since 2018 that ICO went up in flames, it’s been a nightmare for blockchain projects looking to raise funds for initial project development.
Consequently, the only successful smart contract-based sale after the 2018 hype had been Ferrum Network token sales which took place in mid-May. Others have been stuck in ashes.
Those who couldn’t get in for an Initial Exchange Offering (IEO) or a DEX offering have struggled to raise a few thousand dollars after several months of token sales. Largely due to the loss of faith in the ICO model which houses crappy projects with no real-world application, resulting in the token price plummeting once listed.
The DYCO model is redefining this narrative by keeping project teams on their toes in delivering solutions that ensure a project succeeds and amounts to a reasonable token value. The idea of DYCO is that, If the token value plunges and trades 20% below its initial price, DYCO participants can generate risk-free profits by buying tokens from the market and refunding them.
For Orion, the initial supply is 100% backed by USDC for the next 16 months under which investors could lay claims should the token trades at 80% of its issued price. All refunded tokens will be automatically burnt.
The protection offered to investors is part of the driving force fueling a whole new level of trust and faith in the blockchain fundraising model. Consequently, token sales participants could now have a safe landing. With Orion’s commitment to solving the largest problems in DeFi, investors could choose to go to sleep, not bothering about the state of their investment.
About The Orion Protocol
Orion Protocol, the DeFi platform is building the most advanced liquidity aggregator ever developed since the existence of blockchain and cryptocurrency. The protocol aggregates liquidity, order book depth, and trade pairs of every centralized exchange, decentralized exchange, and swap pool all in one place allowing users to tap into a deep stream of liquidity.
By aggregating the liquidity of the entire crypto market into one decentralized platform, Orion Protocol solves the largest issues in DeFi. Orion is able to achieve this feat through its proprietary governing staking mechanism called Delegated Proof of Broker (DPB), fulfilling every function via a decentralized brokerage, with the ORN token at its core.
The DPB mechanism underpins each B2B and B2C solutions built on the protocol, including the flagship product Orion Terminal, which is an aggregation of all major exchanges’ liquidity into one decentralized terminal.
The ORN token which was issued for $0.1 is now listed on exchanges, trading at $2.3 (2,200% appreciation) per token and $9 million market cap at the time of writing.
With Orion’s landmark success, the stage could be set for other innovative blockchain projects to flood the Dynamic Token Offering model, thereby restoring full fate to smart contract-based token sales.