Create token sale

Token sale is a fundraising method in which a company or project offers digital tokens for sale to the public or private investors. A token sale is a crucial step in the asset tokenization process. Follow this guide to efficiently set up your token sale on the Spydra platform:

1. Basic Information

• Token Sale Name: Choose a clear, descriptive name for your sale.

• Token Sale Description: Provide a concise yet informative description of your token sale.

2. Sale Parameters

• Soft Cap: Set the minimum number of tokens that need to be sold for the sale to be considered successful. This ensures investor protection.

• Tokens on Sale: Specify the total number of tokens available for this sale. Ensure this number doesn't exceed your available tokens. Available tokens are calculated by subtracting the sum of all previous token sale counts from the maximum token supply (defined for a token). For the first token sale, available tokens equal the maximum token supply.

3. Timeline

• Sale Start Date: Set the date when investors can begin purchasing tokens.

• Sale End Date: If applicable, set an end date for your token sale. If the soft cap is configured then sale end date is mandatory. If the end date is not mentioned for a debt token, it will be considered a rolling term debt schedule.

• Payout Start Date: Determine when the first payout to investors will occur.

4. Additional Information

• Images (Optional): Upload relevant images to enhance your token sale presentation.

• Documents (Optional): Attach any supporting documents that might be valuable for potential investors.

You can create multiple token sales as long as you have available tokens. This flexibility allows you to adjust your tokenization strategy over time. Learn how to create another token sale post tokenisation - here

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What is Soft Cap?

The soft cap represents the minimum number of tokens that must be sold for the token sale to proceed. Here's how it works:

• Before reaching the soft cap:

  • Investors give permission for future token purchases

  • No actual funds are deducted from wallets

• Upon reaching the soft cap:

  • The platform attempts to deduct funds from investor wallets

  • Tokens are minted and distributed to successful purchasers

What happens when some investors lack sufficient funds?

Upon reaching the soft cap, some investors may lack sufficient funds when the soft cap is reached during a token sale:

1. Order cancellations: If some investors don't have enough funds in their wallets, their orders will be cancelled.

2. Potential drop below soft cap: These cancellations could cause the total number of sold tokens to fall below the soft cap again.

3. Continuation of the sale: Despite this drop, the platform will not cancel the entire sale. Instead, it will continue with the remaining valid orders.

4. Updated order count: The sale will proceed with an updated order count, which is calculated as: Total orders minus cancelled orders due to insufficient funds.

5. Retention of valid orders: The platform will keep the orders from investors who do have adequate funds in their wallets.

This approach ensures that the token sale can continue even if some orders are cancelled, as long as there are still investors with sufficient funds. It provides flexibility in reaching the soft cap and allows the sale to adapt to the actual available funds from interested investors.

Additionally, investors whose orders were cancelled due to insufficient funds will be informed and given another opportunity to invest.

It's important to note that if the soft cap is still not met by the end of the sale period, despite these adjustments, the entire token sale will be cancelled.