The emergence of FERC has led to the appearance of a series of tokens based on the concept of fair launch.
The $FERC token was minted for free on June 1 and quickly attracted community attention, reaching a market value of $15 million at its peak. If the minting gas fee is considered as the cost, about 5U per slip (1000 coins), FERC has increased by about 300 times. Its emergence has spurred the appearance of a series of tokens centered around the concept of fair launch.
What is Fair Launch?
Fair launch refers to every person having a fair opportunity to participate at the time of token issuance. The fairness of Bitcoin’s distribution mechanism is currently the most widely agreed upon. All miners can participate in mining autonomously, and the initial participants bear the cost of computing power and electricity on their own, knowing that there is no expectation of investment return.
The most common token distribution mechanisms on the market include:
1) IDO/IEO/ICO, etc.;
2) Instead of pre-selling tokens, projects are cold-started through community distribution.
There are unfair phenomena in the process of token issuance on-chain, such as malicious contracts, blocking attacks, and exchange manipulations, all of which can disrupt the fairness of token issuance. Token sales on centralized exchanges often require the possession of the exchange’s platform coins, becoming a goldmine for whales. A cold start completed through community distribution, where the number of distributed tokens depends on the contribution of community members, is relatively fair, but generally still requires verification through centralized means.
However, the Ordinals protocol provides a relatively fairer launch method, where anyone can easily deploy and participate in token minting on a first-come, first-served basis. As contracts are not deployable on the Bitcoin network, participants have the opportunity to participate equitably. The speed at which their transactions get picked up by miners is determined by the transaction fees they are willing to pay.
The erc20.cash platform, launched by @jackygu2020, aims to transfer the BRC20 fair launch concept to Ethereum, intending to combine the advantages of Bitcoin’s fair distribution and decentralization with the flexibility of Ethereum’s smart contracts and programmability. $FERC is a token it launched.
The main characteristics of currently fair distributed tokens are:
1) Anyone can deploy and mint tokens, with strong community nature;
2) No pre-mining of tokens, the total amount of tokens is mined from zero until it reaches the token cap;
3) The ability to add holding conditions;
4) Adding a freezing period, during which minting coins requires payment of additional fees, increasing the cost of robot participation;
5) The ability to set prices. However, tokens currently recognized by the market are generally minted for free.
Below are the main token data for fair launch platforms on different chains. This type of token is mainly sentiment-driven, and current trading activity is concentrated on FERC and BERC.
Erc20.cash
Chain：Ethereum
Berc.cash
Chain：Ethererum
Features: After using 49.25% of tokens to create a liquidity pool, they are transferred to a black hole address, 49.25% are fair launched, 0.5% are sent to the Vitalik’s address, 0.5% are sent to the token developer’s address, and 0.5% are sent to the BERC team. On top of FERC, an attribute to automatically add to the liquidity pool has been added.
Merc20.cash
Chain：arbitrum
Oerc20.cash
Chain：Optimism
Serc20.cash
Chain：ZkSync
*Data as of June 7, 2023.
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