Token Sale Formats

• ICO (Initial Coin Offering): Public sale of a project’s native token directly to investors, typically in exchange for ETH or BTC.
• IEO (Initial Exchange Offering): Token sale hosted and managed by a centralized exchange, which vets projects and handles KYC/AML.
• IDO (Initial DEX Offering): Token sale on a decentralized exchange, where liquidity pools are created immediately after launch.
• STO (Security Token Offering): Regulated sale of tokens representing real-world assets or securities, compliant with financial laws.
• Fair Launch: No private or pre-sale rounds—everyone has the same opportunity to acquire tokens at launch (e.g., via mining, public mint).

Participation & Allocation

• Presale / Private Sale: Early fundraising rounds sold to strategic investors at a discount, usually before public sale.
• Whitelist: A list of addresses approved in advance to participate, often required to prevent bot sniping.
• KYC/AML: “Know Your Customer” and “Anti-Money Laundering” checks to verify identity and comply with regulations.
• Hard Cap: Maximum amount of funds the project aims to raise in the token sale.
• Soft Cap: Minimum funding threshold required for a project to move forward—if unmet, funds may be returned.

Airdrops & Bounties

• Airdrop: Free distribution of tokens to users, typically to reward early adopters or promote network effects.
• Retroactive Airdrop: Tokens awarded to users based on past activity (e.g., DEX usage, governance participation).
• Snapshot: Capturing token balances or on-chain activity at a specific block height to determine airdrop eligibility.
• Claim: The action of requesting and receiving airdropped tokens, often via a smart-contract interface.
• Bounty: Task-based reward program (e.g., translations, social media promotion) paid in tokens upon completion.

Metrics & Mechanics

• Allocation: The number of tokens reserved for each participant category (public sale, team, advisors, treasury).
• Vesting Period: Timeframe over which tokens (especially from presales or team allocations) unlock gradually.
• Liquidity Lock: Tokens and/or LP tokens locked in a timelock contract for a set period to assure investors.
• Gas War: Frenzy of high-fee transactions racing to mint scarce tokens (common on high-demand NFT launches).
• Slippage Tolerance: Maximum price impact a user is willing to accept when swapping ETH for newly issued tokens.

Risks & Best Practices

• Rug Pull: Malicious exit where developers withdraw liquidity and abandon the project—look for verified audits and locked liquidity.
• Smart-Contract Audit: Third-party review of launch code to catch vulnerabilities before funds are raised.
• Vulnerability Disclosure: Process of reporting and fixing security flaws prior to token launch.
• Token Lockup Checker: Tools (e.g., Unicrypt) verifying whether project liquidity or team tokens are timelocked.
• Community Vetting: Research reviews, developer credibility, and on-chain data to assess launch legitimacy.

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