“Pencils Protocol is becoming the most powerful tool for crypto projects to build consensus in this round of market cycle!”
For crypto projects, token TGE is a very important thing. It not only means the full launch of the economic system within the ecosystem, but also the full opening of the project ecosystem market. Of course, the token TGE is just the beginning. The key is what strategy to adopt to empower the token after the token is launched to the market. Tokens with good performance can continue to provide momentum for the development of the project and capture investors.
In fact, the stocks and market value of technology companies represent investors' imagination of the company. For example, super companies such as Tesla and Nvidia, which are constantly creative in the field of technology, can maintain a high market value all year round. In the crypto market, the rise of tokens and the market value of tokens depend on consensus.
The reason why Bitcoin and Ethereum are so strong, and ShiB, Doge, etc. are successful, is also due to the market's consensus and confidence in these leading assets. So if it comes to other projects or encrypted assets, whether they can have a good market performance after TGE also depends on whether they have a strong consensus.
Where should consensus be sought?
Many top projects prefer to seek consensus in the secondary market, that is, after obtaining some well-known VC investments in some early private rounds, they directly list their tokens on top CEXs such as Binance and OKX. They expect to capture consensus through the secondary market based on the brand endorsement of top CEXs, a larger trading market, a wider investor group, as well as the narrative and financing aspects of their own projects.
But in fact, these projects themselves overestimate their influence, especially when the industry develops to a new stage, the industry is changing, the mindsets of users (ordinary investors) are changing, and exchanges are also changing. When the project itself does not absorb enough consensus, no one is willing to be the "takeover hero". The representative projects we mentioned above are LayerZero, zkSync, etc.
Among them, after the airdrop of LayerZero, the ZRO token has remained stagnant, and even fell slightly due to market influence, while the token ZK of zkSync is even worse, falling many times below its issue price.
In fact, these projects do not have community rounds, such as IDO, etc. They directly list the tokens on exchanges such as Binance after the VC round, which means that the community itself has no bargaining chips and no bargaining power. In other words, the community’s voice is extremely weak. Although LayerZero and zkSync also have airdrop rounds in the hope of establishing community consensus, we have also seen the effect. Severe witch screening and unreasonable airdrop rules are causing these projects to deviate from the community. With whales and VCs holding huge amounts of coins, the market has no reliable consensus to support buying, and it is inevitable that the token will be hesitant to rise or even fall sharply below the issue price.
Therefore, we seem to be able to draw some conclusions. The consensus of the project coming from the secondary market is usually unreliable and unreasonable. It is more like a behavior of "forcing things to grow".
Accumulating community consensus is the way to go
Chris Anderson's long tail theory reveals the importance of capturing long tail users in the field of commercial marketing, and in the field of encryption, capturing niche long tail groups is still a very important part. In fact, the influence of a single investor in the long tail user group in the encryption market is limited, but the cumulative influence of a large number of long tail users in the market cannot be ignored. They often participate in various activities, such as transactions, community discussions, airdrops, etc., and contribute the most to the market's activity. The community is usually a collection of long tail users, so a strong community can only be established with the will of the people. And giving the community some bargaining power and better opportunities for early market participation more sincerely is the key to building consensus in the early stages of the project.
In fact, in the early days of the industry, such as 2017, 2019, and 2021, many top projects actually had their own public offering rounds after the VC round, in the form of IC0 and IDO. When users truly participate in the early market, they become part of the project development. They are early investors and early builders. As early users who truly hold these tokens, even after listing on the exchange, they still have a strong desire to hold them for a long time.
We have observed some high-quality and community-backed, representative ones such as Ethereum, Polygon and Avalanche, etc. We don’t need to say much about Ethereum. Polygon and Avalanche performed very well in the last round of market cycles. The highest price of Matic (through Coinlist IDO) ($2.68) increased by more than 1,000 times compared to the price at TGE, and the highest price of AVAX (through Tokensoft IDO) ($146.22) increased by about 300 times compared to the price at TGE.
Therefore, these projects that embrace the community closely can always burst out amazing energy in the subsequent market, which shows that embracing the community in the early stage is the best way. In fact, in this round of market cycle, many projects have ignored the importance of community consensus, such as LayerZero and zkSync mentioned above. This also indirectly confirms that the startup methods such as IC0 and IDO have long been deeply imprinted in the genes of Crypto.
Then we can probably draw a conclusion that projects that can better embrace the community will have a very promising subsequent market performance. On the other hand, an ecosystem that can better establish a deep connection between the project and the community will also become an important value depression in this round of market cycle. The reason why Pencils Protocol has been highly recognized by the market and can continue to obtain financing under the current market conditions is, on the one hand, its product innovation and profit expectations. On the other hand, its LaunchPad section has a higher degree of openness, giving the community a higher voice.
Community consensus aggregator for this market cycle: Pencils Protocol
Pencils Protocol is a comprehensive DeFi platform on Scroll, which has launched a series of products including LaunchPad, Farming, Vault and Shop. As the leading DeFi ecosystem on Scroll, it has reached a TVL of 300 million US dollars and over 200,000 active users with only the opening of the Farming (supporting LRT token staking) section, making it the project with the highest TVL on Scroll (TVL data accounts for about 50% of the total TVL of the Scroll ecosystem). At present, the single-chain staking volume of Pencils has exceeded more than twice that of Binance Farming project Altlayer, which is enough to show its market recognition.
Judging from the LaunchPad section, Pencils Protocol has the potential to become a community consensus aggregator in this market cycle.
In fact, most LaunchPad ecosystems can provide the community with opportunities to participate in some high-quality projects in the early stages, but lack a certain degree of freedom, that is, the community usually does not have a voice and can only participate passively. The LaunchPad section of Pencils Protocol further delegates power to the community, which brings more choices and initiative to community users. Users can not only participate in the mining of early online projects in the form of DAO, but are also given bargaining power, that is, through various means to continuously reduce the cost of participating in new projects, so that the community can recognize good projects and high-quality projects earlier and join these ecosystems.
In this round of market cycle, there is a lack of deep connection between users and high-quality projects. Simple airdrops cannot avoid the potential threat from non-loyal speculators, and the unreasonable airdrop rules of the projects themselves further reduce the effectiveness of airdrops. In this paradigm, users are simply early participants and contributors to the project.
Through Pencils Protocol's Launchpad, it not only helps good and high-quality projects to gain community recognition in advance and become early followers, participants, co-builders and contributors of the project, but also gives community users bargaining power, so that users are loyal investors in the project (this is an effect that is difficult to achieve in most LaunchPad ecosystems). Because users participate in the construction in the early stage and get the bottom price chips, they are more deeply bound to the project and expect the project to grow and develop better. At the same time, they are expected to participate in the construction of the project in depth and for a long time, and become long-term holders. It can be seen that the LaunchPad paradigm of Pencils Protocol is expected to bring unexpected effects to the long-term development of the project.
From another perspective, Pencils Protocol itself is not just a LaunchPad platform, it also includes Farming (Staking), Vault for leveraged liquidity mining, and Shop and other functions. After the project is in LaunchPad, the token can further bring a series of new benefits to users in the Pencils Protocol ecosystem, while continuously capturing liquidity from the ecosystem. From before the project token is launched in LaunchPad to after it is launched to the market, Pencils Protocol can continuously empower it and realize a situation where users, project parties, and the Pencils Protocol platform benefit from it.
Therefore, Pencils Protocol is becoming the most powerful tool for crypto projects to establish consensus in this round of market cycle. At the same time, with the launch of the ecosystem, it will also be a new value depression in the on-chain world.
Pencils Protocol’s upcoming IDO
Pencils Protocol has also released a plan to sell its ecological token DAPP, which will start IDO on the Tokensoft platform on September 18. The total number of DAPP tokens is 100 million, of which 20%, or 20 million DAPP tokens, will be used for this sale.
This IDO has set a tiered price, including $0.8 (12-month linear unlocking, no unlocking at TGE) / $1 (9-month linear unlocking, 20% unlocking at TGE) / $1.5 (6-month linear unlocking, 40% unlocking at TGE). The lower the price, the longer the lock-up period, and users have more options. At the same time, some holders of Scroll Canvas badges (including Scroll, Scroll ecosystem, Pencils S&P badges, etc.), Pencils SOUL NFT
Users of assets such as , Pencils Season 1 Card, etc. will not only receive more additional quotas, but also receive a bonus on the income from DAPP token staking after completing Tokensoft KYC and subscription. The priority of community rights will help Pencil Protocol build a deeper consensus.
On the other hand, among the series of unlocking events of DAPP tokens, the unlocking cycle of IDO is the shortest, and other events are generally 12 to 18 months. With the launch of the Pencils Protocol series of functions in the short term, it will not only accelerate the adoption of DAPP tokens (staking and holding to obtain a series of income rights), but also accelerate its destruction (for example, Vault will take out 30% of its income to repurchase and destroy DAPP tokens). From this perspective, DAPP tokens will continue to achieve deflation during the unlocking window period and form an upward value cycle.
As ecosystems that prioritize building community consensus, we have witnessed the market performance of Polygon and Avalanche in the last round, especially AVAX, which is also an IDO conducted by Tokensoft. Therefore, the DAPP token will have a huge number of long-term supporters, and the market expectations for the DAPP token after the IDO will also be very obvious.
For Tokensoft registration and verification, please refer to: medium.com/@PencilsProtocol/tokensoft-registration-verification-tutorial-a0fcbc160bb9;
learn more:
Official website: pencilsprotocol.io/
Official Twitter: x.com/pencilsprotocol
