For the 2 years that we have been developing TokenGen, we have made it our priority to support smart contract functionality used by modern ICOs, STOs, and IEOs.
While the project creation process is seemingly straightforward, with hints explaining what each feature does, we still regularly get questions by clients about specific features and whether they need to use them for their digital asset.
In this article, we will detail each TokenGen smart contract feature with easy-to-understand examples. Hopefully, this will enable future users to make more informed decisions as they create their TGE projects.
Currently, TokenGen comes with 9 smart contract features – 3 for the token contract and 6 pertaining to the fundraiser contract (official documentation). They are as follows:
- Burnable Token
- Pausable Token
- Mintable Token
- Capped Fundraiser
- Refundable Fundraiser
- Whitelistable Fundraiser
- Tiered Fundraiser
- Token Safe
Each of these adds certain functionality to the smart contracts. Now let’s delve into each individual feature.
Before we get to the details, let’s note that we will use a fictitious Example Token (ET) to portray some of the examples for each feature.
Simply put, this feature allows people to destroy tokens. For example, someone participated in your ICO and purchased 10,000 ET. For whatever reason, they decide to destroy some of these tokens – let’s say they want to destroy 5,000 ET.
With the Burnable Feature, they can simply call the
burn method of the token smart contract with the amount of tokens they want to burn, and then the tokens will be destroyed.
This feature can be used when the economics and mechanics of a digital asset require it to shrink in supply as time progresses. This lessening of the total supply of the token usually results in a price increase for each individual token since less and less remain in existence.
This is the simplest of all token features. It allows the owner of the project to pause/unpause transfers on their digital asset at anytime they so choose.
For example, it is usually a good practice to not allow token transfers while an ICO is ongoing and/or until the digital asset is listed on a decent exchange.
This feature allows the owner of the project to send tokens to any address they want, at anytime (Mintable Token feature guide). The minting of new tokens can be disabled and is irreversible i.e. once it is disabled, no more of our Example Token can ever be created.
For instance, if you want to deploy your smart contract but the ICO is set to start in one month, you can hold a private pre-sale during the period leading up to the crowdsale opening by minting tokens to private investors.
The fundraiser features are a bit more advanced than the token features, but still easy to handle thanks to TokenGen’s advanced user interface.
This feature adds a hard cap on the fundraiser i.e. a limit on the amount of funds that can be raised. For example, if you want your ICO to be similar to the EOS crowdsale, don’t use this feature. Without it, your fundraiser will gather as many resources as possible during the period that it is active.
If, however, you want to have a limit on the amount of funds you want to raise, as is the more prevalent case in modern TGEs, then you need to use this feature and set the hard cap in ETH.
This feature adds a soft cap to the fundraiser i.e. a minimum amount of funds that needs to be raised in order for the project to proceed with development. If this cap is not reached, participants (if any) will be refunded.
For example, if you have calculated that you would need at least $2 million USD to lift your project off the ground, then you can set that as your soft cap and proceed only if this amount is reached. If not, participants will be refunded and no harm is done.
This feature allows you to permit only specific addresses to participate in the fundraiser (Whitelistable Fundraiser feature guide). For example, if you require each participant to go through a KYC process, then you can use the Whitelistable Fundraiser feature to whitelist only addresses of people that are verified. Serious projects always have KYC checks and whitelisting in order to comply with AML policies.
This feature adds a pre-sale period to the fundraiser. For instance, if you want to gather seed funds for marketing prior to the main token crowdsale, then this feature is a great way to achieve that. Usually pre-sales have discounts on purchases so early adopters are encouraged.
This feature allows you to add bonus periods to your fundraiser (Tiered Fundraiser feature guide). For example, if you want to add 30% to all token purchases in the first week of the ICO, then this is the feature you want to use.
This feature allows you to lock tokens for specified periods of time (Token Safe feature guide). For example if you want to lock 100,000 Example Tokens for the core team to be released in January 2021 and 50,000 ET for the advisors team to be released in January 2020, then this is the feature you want to use.
Choosing what you need
The TokenGen pricing model is designed in a way that charges you only for functionality you actually need. That is why it is very important to know how your token and fundraiser will be structured before you proceed to purchase your project. Project features cannot be changed so if you identify that you are missing a key feature, you will have to purchase a new project.
In closing, if you have any ideas about new smart contract features or supplementation of existing ones, feel free to send us a message.