AMA Cryptoscreen with Avalaunch

On 28 July 2021, Avalauch conducted an AMA in the Cryptoscreen Community. Our guest is Dave Donnenfeld of Avalaunch.

Lots of questions as usual from the Community about Avalaunch progress. The Avalaunch team took part in a very interesting AMA session which included introductions, questions from twitter, and a live AMA session with the Cryptoscreen community. If you missed the AMA in person, read this recap for a deeper insight into Avalaunch.

Let’s take a look at the most interesting points of our conversation.

INTRODUCTION

Syaiful :
Okey, Before I start the first session can you introduce yourself to our community?

Dave Donnenfeld :
Of course. My name is David Donnenfeld and I’m one of the co-founders and directors of Avalaunch.

Well, to say a little more on my background – I’ve been in crypto since 2017 but have a background in private equity, specifically as a writer and have done my share of meeting in venture circles. I am personally someone who takes a stronger fundamental stance in assessing projects.

Syaiful :
Q1. Can you tell the members a little about Avalaunch?

Dave Donnenfeld :
Certainly. To keep it very simple— Avalaunch is the first protocol built exclusively for the Avalanche ecosystem, to offer promising and innovative projects a fast, secure, and efficient platform for decentralized fundraising.

Let me say a little more actually

That’s what the website says and I can expound a little—in my estimation, traditional fundraising has an advantage over crypto. It’s streamlined. The expectations and deliverables for a business seeking funding are pretty clear and that helps. Professional investors have a point of entry, be it early or later stage and a clear understanding of what they need to see before considering an investment. Crypto, in my opinion has way more opportunity and innovation but it is untethered from any semblance of guidelines.

When you do an IDO, some projects are mature and ready with working products while others are great ideas by a few passionate individuals. Both can be deserving of funding and exposure but it’s a completely different proposition. Then there are projects that don’t solve a problem or have an identifiable marketplace and so forth. Avalaunch is looking at the box sideways; re-examining tokenomics, distribution, go to market strategies and using more fundamentals than the number of followers. It is anything but a seduce and abandon approach. Along the way, we’re developing some innovative products and business development funnels that can foster the growth of the projects that we support.

Syaiful :
Q2. What problems does Avalaunch solve among launchpads?

Dave Donnenfeld :
I think there are a lack of guidelines as mentioned. We need to have some more structure in place. For me, basic fundamentals go a long way in determining what’s going to be here in the future. Currently, the approach is broken as I see it. Look at how most IDOs come to pass—Leading to an IDO, projects get a lot of mention and marketing, access to a launchpad’s list of influencers who shout about it followed by a modest public sale. Thereafter, it’s basically game over and all it takes is one look at a launchpad’s resume after a few months to see the result. The volume is gone, the interest in the project is gone, the huge group of people who wanted to participate in the sale are gone. Now even the best of project leaders have to work under incredibly strenuous conditions as angry communities gang up. That’s wrong and you have to remember, we are an Avalanche launchpad because we believe that this is the blockchain to build on. When Avalanche comes to the fore like we think it will, it’s only going to be as good as the projects being built on it. We take that very seriously.

Syaiful :
Q3. What products does Avalaunch have and in the future, will you add more products?

Dave Donnenfeld :
Well our core competence/product is as a launchpad but our approach is dynamic. We hope to iterate on what is out there in terms of the type of sales we conduct, our approach, our tokenomics and all the rest. I think very soon people will see that there are more than standard issue IDOs. As we develop I feel it is going to be products that impact the projects we support. We have to ask ourselves what we can contribute to ecosystem that is Avalanche because we can grow right alongside it. Right now, we are developing international communities, have partnered with exchanges and done our share to raise awareness that Avalanche is a blockchain to be reckoned with. That hugely enhances our product. When we start rolling out impactful projects and lubricating their path to success with our resources, I think users will realize that it is seamless and we are essentially part of the fabric that has unlimited growth. This means that within our product there will be sub-products, ranging from support features to alternative types of sales and more.

Syaiful :
Q4. What sort of actual changes to fundraising do you think are most important for the future?

Dave Donnenfeld :
Well, to begin, the tokenomics of newer offerings is going to evolve. As of now, it is very lopsided from entry to exit. We’ve certainly learned about this as private and seed investors historically are long term holders who are often years away from any real liquidity. In crypto it doesn’t work that way. You have early-stage companies becoming quickly tradable assets and far too often the earliest investors are the culprits that abandon the projects. I’d like to see some price uniformity across tranches to begin. A multiple for someone who has been holding for years and took the most risk makes sense but when it’s a matter of a few months, that’s another story.

Vesting should be more stringent as well and we’re exploring different types of parameters for token releases. Crypto is not a terribly liquid asset class on the whole and this isn’t going to change any time soon. The reality is that tokens should be released when there’s enough demand for them. This is qualitative of course but for example, one project we are working with really has more of a token activation than an unlock. When the token has actual utility it’s unlocked. Every project is different of course but looking for bonafide markers and metrics that can actually determine when a token can be supported by the market vs. the arbitrary approach we see today will matter. Retail buyers have smartened up some and aren’t as keen to blindly buy into massive spikes on day one. I think we’re going to see creative vesting and carefully thought through tokenomics whereby someone who finds a project a few months after listing is actually still early; not light years late.

Syaiful :
Q5. Have you met all your goals in the roadmap till now? And were there any difficulties that you didn’t expect and were not prepared for?

Dave Donnenfeld :
Avalaunch hopes to be a gate keeper of sorts that’s dedicated to the ecosystem of Avalanche. We’re looking at the box sideways; re-examining tokenomics, distribution, go to market strategies and using more fundamentals than the number of followers. These are more qualitative factors but were important to our development. In that regard, we’ve come a long way. When the market turned bearish we were able to focus on infrastructure. We’re developing international communities, have partnered with both Gate and Kucoin and partnered with a number of Avalanche projects. This has moved ahead of schedule. In terms of the actual platform launch, we’re a little late but it was a matter of prioritizing where opportunity lied in the face of market conditions. With respect to things we didn’t expect and were not prepared for – to be candid, yes and no. We expected things would not always go as planned and to be ready to pivot. There have been a number of times that’s happened already and we adjusted. It’s hard because you can’t tell the community everything. Things come together while other things don’t. Conditions change and for us, we’re managing a lot more than what people see so that’s been tough at times because you’re ready but moving forward, at times, requires the cooperation of many parties.

QUESTION FROM TWITTER

Syaiful :
Q1.One of the greatest aspects of project success is community support. And most of the big projects have programs that interact with their users. My questions Do you have any specific plans to attract & expand your community and improve the user experience?

Dave Donnenfeld :
I think you raise awareness by building communities and doing translations and the little things that matter. For example, we have a pretty vibrant Turkish community because Avalanche is founded by a Turkish gentleman. They are strong supporters and are more than capable of a dedicated community. As I mentioned, we are currently developing a community in Japan and expanding our reach globally. I think this presence not only helps us but the projects we support. Crypto is borderless and we should not be siloed. But community is also inhouse to a degree. We have some great admins who are very versed in the Avalanche blockchain, a customized bot (Xavier the XAVA bot!) that can serve up loads of information and a dedicated support channel. That makes user experience much improved over what we typically see and is hopefully inviting to prospective community members.

Syaiful :
Q2.Can you tell me the role of the $XAVA token in the platform ecosystem? Do users need to hold $XAVA to take part in the upcoming IDO? Do you have any Coin Burn/BuyBack plans to increase Token value & attract Investors to invest?

Dave Donnenfeld :
Sure. The primary feature of the XAVA token is staking in order to access sales, however, we offer staking and farming so you can participate in a couple of ways. Yes, you do need to stake XAVA to participate in IDOs. Personally, if you believe in Avalanche as a growth ecosystem, XAVA would be an interesting project to stake or even statically hold. We have no plans for buybacks/burns as the benefits of this are typically short-lived and to me suggest that the project didn’t consider the supply/utility correctly in the first place. Overall, we are pretty straight forward but our tokenomics include some pretty cool features including staking where duration contributes and other wrinkles that are still not yet revealed. Our upcoming staking allows users to build a sort of equity in their stake and of course we have additional things like fee distribution and ecosytem rewards. I think in due course you’re going to see a pretty dynamic utility token.

Syaiful :
Q3.So Avalaunch is designed to remove the pain points of the current fundraising landscape. What do you think are the major drawback of current fundraising platforms and how will AvaLaunch provide a lasting solution? Can you also explain your approach to Transparency?

Dave Donnenfeld :
The lack of guidelines are a big pain point. Basic fundamentals go a long way in determining what’s going to be here in the future. Secondarily, the approach is broken as I see it. As I mentioned in the problems we solve question, IDO projects get heavily marketing by launchpads and the basically abandoned. Thereafter, it’s basically game over. I think that’s the most major drawback. Going beyond that, most tiered system favor whales because it is determined solely by the number of tokens you hold. Then you have the inequitable distribution where public sales are often really small and on it goes. One of the reasons we chose Avalanche as the place to build on is because we knew no one can really know everything about every layer 1. We’d rather have some expertise, be here early, support projects building here and so forth. We’ve met a lot of great teams that have built here already and we support each other and these are not upcoming IDOs. Still, the friends we’ve made here are going to matter in terrms of added value for us. It’s a matter of building needed infrastructure and I don’t think this has been done well to date.

Syaiful :
Q4.You have an amazing advisors listed on your website. Can you explain the respective implications of these advisors on AvalaunchApp? More precisely, when will Avalaunch start benefiting from these partnerships?

Dave Donnenfeld :
We were fortunate. They are a select group of individuals who have been deeply invested in the Avalanche ecosystem from the beginning. Trusting the team is vital for a person who is investing in crypto. These individuals took a lot of time to meet and even grill us on our vision and how we intended to achieve it. They’ve been through the market cycles and all that goes with building a blockchain as big as Avalanche so we are honored to have them sharing their experience, guidance and perspective. We are proud to have run the gauntlet with them, so to speak, and were able to meet their approval. We think it says a lot about what we’re up to and with their continued contributions, believe we can realize great things together. As for when we realize the benefits, well, I think we have been along. Much of this is about course correction. You build with a community in mind and serve the greater ecosystem. People have been there from the beginning know what you are going through and have likely encountered these situations. You become very solution oriented together while networks continually grow. This is something that has been and will continue to be instrumental in everything we do.

Syaiful :
Q5.One of the features you highlight about Avalaunch is that your platform’s fundraising is “fair and equitable”. My question is, what technological mechanisms do you use to ensure that fundraising is really fair and equitable for your users?

Dave Donnenfeld :
Glad you asked this because i think this is going to be the first time we’ve publicly discussed some of the ways in which our staking will actually work. To begin, I think that KYC and the usual safeguards can not be overlooked and simple thing like maximum allocations are strong preventive measures. Where we go a step further—our tokenomics are designed specifically to reward those who stake and stay. Whenever a user starts staking, we collect a fee in XAVA which gets distributed to all those who were staking before you. When users stake for an IDO, they can choose to participate and wait. For those that opt in, there is an additional fee taken in XAVA which is re-distributed to all the other users. And of course stakers will be receiving ecosystem rewards as well. So if you consider the big picture of this – your weight grows with time as you become eligible for more rewards by virtue of your involvement in staking. This is set up to ensure parity and ultimately to put the XAVA IDO power in the hands of those who are willing to demonstrate their desire.

LIVE/ FREE QUESTION

Q1. In many projects, Whales harm small and long-term investors as they sell all the tokens they have after the project token is listed. Has Avalaunch team developed solution to limit whale?

Dave Donnenfeld :

We extended the vesting on seed round participants and have restricted them, team and advisory tokens from participating in IDOs. As I mentioned in the last question regarding how our staking works, along with max allocations, that we are as well positioned to guard against whales as we can hope to be.

Q2. What’s your long-term vision for marketing and the XAVA ? How will you increase the adoption of blockchain by institutions?

Dave Donnenfeld :

I’ll address the second question in here. I think institutions are here and will continue to come with regulation. Avalanche is building with this in mind and is going to be a very attractive place for serious players looking to come over from tradfi.

Q3. When the price is seriously DUMP, projects can lose their community. What is your plan to make product-oriented community (BELIEVERS) that support your project longterm?

Dave Donnenfeld :

I think our staking model is going to create inclusion and incentive that a community will rally around and support. I also think that taking a more sober, long-term view on projects as a launchpad is going to matter in the long run.

Q4. What are you most excited regards to the future growth of Avalaunch?

Dave Donnenfeld :

This is a wide casted question but for me personally, I’m most excited about what I think is going to happen with Avalanche in a way. I think it’s going to grow considerably and am personally quite excited to be the point of entree for new projects. We get to be there, see what’s coming and contribute to it’s growth. That may sound a little simple but it’s going to be great I think.

 

 

 

 

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