#Binance Labs-backed Magic Square announced the launch of its new initial DEX offering (IDO) platform.
The new crowdfunding platform is built on a decentralized exchange (DEX) and aims to democratize retail access for Web3 investors with limited funds, according to Michael Landsberger, the chief operating officer of Magic Square.
Magic Launchpad achieves this through unique allocation strategies that equally favor users with fewer funds by taking into consideration factors like user activity and ecosystem contributions. Landsberger told Cointelegraph:
“This inclusive approach ensures that more community members can participate, rather than limiting opportunities to a select few, which are usually the ones that are more wealthy than others.”
Users wishing to participate in investment rounds first need to stake Magic Square (SQR) tokens to earn SQR points, which will determine their allocation size for some projects requiring participation points.
Users can also stack points by participating in the “Road-to-IDO” campaign before every project’s IDO launch, which rewards users based on their activity within the new protocol’s community.
The new platform aims to offer more than just financial support for emerging Web3 protocols, such as post-IDO and community-building support, explained Landsberger:
“We believe that an IDO should be more than just a fundraising mechanism. If the focus is solely on raising money, the real potential of the IDO is missed. Our approach views the IDO as a powerful tool to build a strong community and user base, ensuring long-term project success rather than just securing operational funds.”
Magic Square claims to be the first community-driven Web3 app store aiming to tackle user acquisition and engagement challenges. The project has over 4.5 million registered users and over 1,300 applications listed on its platform.