We are thrilled to announce our upcoming PulseLend Sacrifice Event (PSE) for the PulseLend protocol. The PSE will be conducted in an innovative and community-focused manner, ensuring that the price of our token is determined directly by our community members. Here is a comprehensive explanation of how the PSE will unfold:
A pool of 1,5 billion PulseLend tokens will be available for distribution to users who commit Pulse (PLS) during the PSE period.
The PSE will span 72 hours, during which users can commit PLS to participate in the token distribution process.
To incentivize early participation, the contributions will have a decreasing weight factor every 6 hours. The weight will start at 3 and decrease by a factor of 0.25 every 6 hours, reaching 1x weight on the last day of the PSE period.
Once the 72-hour period concludes, the 15 million PulseLend tokens will be distributed proportionally among all users who committed PLS. The distribution will be based on each user's weighted contributed PLS amount relative to the total weighted PLS committed by all participants.
A percentage of the PLS collected throughout the PSE will be utilized to provide initial liquidity for the PulseLend token. This approach ensures a fair and organic price discovery process, as the initial token price will be determined by the community's engagement and commitment.
By adopting this PSE model, we are empowering our community to directly influence the PulseLend token's initial price. With no predetermined or fixed price for the token, a truly democratic and decentralized price discovery mechanism emerges.
Let's assume four users participate in the PSE:
User A contributes 1000 PLS within the first 6 hours (3x weight)
User B contributes 1000 PLS between the 18th and 24th hours (2x weight)
User C contributes 1000 PLS between the 42nd and 48th hours (1.25x weight)
User D contributes 1000 PLS on the last day (1x weight)
The total raised is 100000 PLS, and each of the four users contributed 1000 PLS. However, the effective contributions, after applying the weight factors, are:
These effective contributions will be used to calculate each user's share of the 1,5 billion PulseLend tokens being distributed.
We firmly believe that this community-driven approach to our PSE will result in a more transparent, equitable, and captivating experience for our users. We eagerly anticipate your participation and support as we collaborate to establish a dynamic and sustainable ecosystem for the PulseLend project.