Key takeaways:
- Flare Network and Lena Instruments have announced the rollout of CloudFunding, a new type of crowdfunding launchpad
- CloudFunding allows users to contribute rewards generated by wrapped FLR and SGB tokens to launchpad projects
- Contributors receive IOUs (proportional to their investment) that can be freely exchanged before the project’s tokens are distributed
CloudFunding represents a new take on crypto crowdfunding
Flare Network, a layer 1 EVM-compatible chain that aims to connect to all blockchain ecosystems, and Lena Instruments, a Swiss IT blockchain infrastructure provider, have announced the launch of CloudFunding, a decentralized launchpad project.
Unlike other launchpads in the sector, CloudFunding employs a new approach to raising capital for cryptocurrency projects. For starters, CloudFunding users retain full control over their principal investment at all times, whereas contributions made on other launchpads are directly put in support of launchpad projects. This means that contributions made to crowdfunding come from the rewards earned by participants’ wrapped FLR and SGB tokens.
In addition, contributors have the flexibility to allocate a different share of the rewards generated by FLR/SGB principal to crypto projects featured on CloudFunding – anywhere from 1% to 100%.
Another characteristic that makes CloudFunding stand out from other similar products – such as Binance’s or Bybit’s Launchpads, for instance – is the utilization of IOUs. Contributors are granted access to IOUs based on the amount of tokens they allocate to each project featured on the CloudFunding platform. IOUs can be freely traded before the crowdfunding campaign ends and the project’s native token is distributed.
Projects launching on CloudFunding benefit from instant liquidity, additional cash flow
One of the core benefits for projects using CloudFunding over other launchpad platforms is the ability to tap into additional cash flow for the duration of the crowdfunding campaign. At the end of each reward epoch, projects receive capital that can be used to fund development, boost marketing, and lay the foundations needed for a successful and long-term business.
In addition to providing access to new capital, CloudFunding also supports projects with legal advice, smart contract audits, financial advice, and more. Moreover, upon the conclusion of a crowdfunding campaign, projects are guaranteed instant liquidity on decentralized exchanges (DEXs) that list projects’ native tokens.
More on CloudFunding crowdfunding: What are Raise and Yield Periods?
CloudFunding campaigns are divided into two distinct investment periods – the Raise Period and the Yield Period.
During the Raise Period, the community can wrap and lock their SGB and FLR tokens in a dedicated smart contract. The total amount of tokens a launchpad aims to raise is specified by each project itself, through what is called a Target Amount.
If the Target Amount is successfully reached before the deadline, the second phase of the launchpad can begin. During the Yield Period, the rewards generated by the SGB/FLR principal allocated are donated to the project at the end of each rewards period.
The Yield Period can last up to five months. After its completion, contributing users will automatically receive their original investment and the project’s tokens in proportion to the IOUs they possess.
If Target Amount is not reached, the principle and rewards generated are returned to contributors.
Flare co-founder and CEO Hugo Philion commented on the launch of the CloudFunding platform in a statement:
“CloudFunding is a perfect example of how developers can take advantage of the decentralized data infrastructure built natively into the Flare blockchain. By using the Flare Time Series Oracle as the mechanism for contributing to exciting new projects, CloudFunding creates a win-win-win situation. Flare obtains another FTSO provider that’s highly incentivized to provide accurate price data to the network; new projects get early access to community funding and support; and Flare token holders get the opportunity to join new exciting projects with zero risk to their principal.”
Laura Moreby, Head of Communications and spokesperson for Lena Instruments, said that the company – “being a major token holder in Flare” – is committed to the Flare Network’s long-term success.
“CloudFunding is a modern, decentralised launchpad that will allow the community to support the best possible projects within the ecosystem, having been carefully curated by the platform. Contributors can, without ever having to sell their FLR or SGB, keep up to date with developments, deliverables, and milestones made possible by their contributions,” explained Moreby.
