<aside> 🔍 Minting a personal or community owned token (ERC20 Token) on Coinvise works on a fixed supply by default (10,000,000 Tokens) and optionally minted on a linear bonding curve. In case of ERC721 Tokens or NFTs, Coinvise mints them as unique collections under $CVIS on Ethereum and Polygon.
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Social tokens on Coinvise can be minted either on Ethereum Mainnet (L1) or Polygon (Matic) Network (L2). We typically suggest creators or communities to create a token on L1 for higher value transactions, and migrate a portion of the tokens to L2 for airdrops, rewards or other high volume transactions to optimize for gas costs. By default, the creator or the community will be the owner of the token contract.
Core utility of your token ✨
Before you create a token, it's important to understand core use cases that drive successful interaction around them. Social tokens are best used for when they scale or incentivize coordination and engagement between communities. Incentives are ideal when it's mutually beneficial to you and your community. Popular use cases that we've seen on Coinvise include but are not limited to:
Maintaining Treasury đź›
Once you have a clear use case, founding member(s) of the community can create an account on Gnosis to store and distribute ownership. We also suggest using Llama for managing treasuries or Snapshot for governance mechanisms. It's helpful to understand allocations of how tokens will be utilized (Eg: 70% Treasury, 20% allocation for team/community, 10% vested over time for airdrops, bounties or other incentives).
Crowdfunding đź‘Ą
Fundraising directly from your community can be helpful to bootstrap liquidity for your token through staking or raising through NFTs. Coinvise enables crowdfunding either through staking on a pool, with LPs or through NFT collections. We don't support ICO's yet, we recommend Reversible ICO by Fabian Vogelstellar. Note: Coinvise has integrated compliance for crowdfunding, as per SEC regulations. Learn more about Securities Law for Social Tokens below.
Creating an ETH/Token Pool on Uniswap 🦄
Each Uniswap liquidity pool is a trading venue for a pair of ERC20 tokens. When a pool contract is created, its balances of each token are 0; in order for the pool to begin facilitating trades, someone must seed it with an initial deposit of each token. This first liquidity provider is the one who sets the initial price of the pool.
Whenever liquidity is deposited into a pool, unique tokens known as liquidity tokens are minted and sent to the provider’s address. These tokens represent a given liquidity provider’s contribution to a pool. The proportion of the pool’s liquidity provided determines the number of liquidity tokens the provider receives. If the provider is minting a new pool, the number of liquidity tokens they will receive will equal sqrt(x * y), where x and y represent the amount of each token provided.