What Are Liquidity Bootstrapping Pools?
LBPs are a dynamic pricing mechanism used for token sales. They allow the price of a token to start high and decrease over time based on supply and demand.
This method ensures fair price discovery, as the price is determined by market participation rather than being fixed.
Why We Chose This Method
At TAND3M, fairness and transparency are core to everything we do. That’s why we’ve chosen LBPs as our token sale mechanism—ensuring that pricing is driven by the market, not pre-determined or influenced by a few early participants.
We call this approach #FairByDesign because it fosters a level playing field for everyone involved.
For Startups
LBPs offer flexibility in raising funds over time, allowing projects to benefit from dynamic pricing that reflects real demand. This avoids the pressure of setting a fixed price and encourages ongoing participation as the sale progresses.
For Project Backers
LBPs provide a transparent, market-driven opportunity to purchase tokens at a price that aligns with the project's true value. The price discovery process lets participants wait for a favorable moment to invest, reducing the risks of overpaying or speculative buying, and creating a more balanced and equitable environment.
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