Jigstack Takes A Different Approach To Decentralizing Finance


Token sale platforms, or launch pads, are trendy these days. Most of them serve to bring revenue to the company in charge rather than the user. Jigstack's Lemonade is very different in this regard.

The Current State of Token Launch pads

It would seem that every significant exchange has a native launch pad for token sales today. Ranging from BitMax to Binance and everything in between, these exchanges will help teams set up their token sale to attract as many investors as possible. It is a viable approach for the projects exploring an Initial Exchange Offering (IEO), although it comes at a cost.

Organizing a token sale as part of an IEO will incur listing fees. Depending on the platform used, those fees can be rather high. More importantly, this cost only helps bring revenue to the company, but not the users. It is an unrewarding approach to token sales and something that will need to be improved upon in the future.

Jigstack's Lemonade is an intriguing example of how one can do things differently. Not only does it succeed in lowering the overall fees of organizing token sales on Ethereum and Hedera Hashgraph, but it also brings revenue to the holders of its native STAK token. All revenue generated through Lemonade and the other products under the Jigstack DAO banner is primarily distributed to token holders. The remainder will serve as a mechanic to burn STAK, reducing the circulating supply.

The Broader Jigstack Ecosystem

Looking deeper into the Jigstack DAO, the team is building multiple products that can generate revenue on their own and complement one another. Its solutions span automated and d centralized affiliate marketing, staking services, and the ability to send cryptocurrency to any email address. Several of these products are still under development, yet Lemonade will become available to the public soon.

Under the Jigstack DAO banner, the tea wants to promote streamlined branding, transparency, user empowerment, and auditability. The code of its token sale platform has been audited by CyberUnit, ensuring there are no flaws or weaknesses for hackers to exploit. As this platform is fully decentralized without intermediaries, a code audit is more than warranted. Ethereum's ecosystem has seen multiple smart contract-related incidents over the years, resulting in millions in lost funds.

To confirm the team's confidence in Lemonade as a token sale platform, Jigstack will conduct the upcoming Initial DEX Offering (IDO) of its native STAK token through this platform. Doing so will help onlookers and partners determine how resilient this product is. As investors will interface with smart contracts directly, there will be an extra layer of transparency and accountability.

How STAK Works

As mentioned earlier, the Jigstack team builds products capable of providing incentives to token holders in the form of revenue. However, it also serves as a governance token, allowing the community to determine the DAO's future and all of its products. Whereas some companies try to split the revenue and governance aspect into separate tokens, Jigstack's team sees merit in combining both aspects in STAK.

Speaking of the revenue, Jigstack's ecosystem takes a 1% transaction fee on all transactions. Eighty percent of this amount is awarded to STAK holders directly, whereas the remainder serves as a way to BURN tokens. Additionally, the token sales via Lemonade will be subject to a fee of 1% of the token supply being sold. That fee will also be distributed to STAK owners, creating multiple sources of liquidity through one product.

Once the other products by Jigstak come to market, they too will be subject to the 1% fee. As more companies and partners integrate this technology, there will be more transactions and more revenue. With the burning mechanic, the team can reduce the circulating STAK supply, bringing more value to token holders.

Closing Thoughts

It is refreshing to see a different take on token sale platforms and how they can bring revenue to a community instead of a company. As part of the broader initiative, Jigstack wants to empower the users rather than maintain a top-down structure where a select few reap the benefits. Leveling the playing field for both governance and revenue purposes can set an example for other projects to follow.

For an industry designed to focus on decentralization, DeFI currently has a fair bit of centralization across nearly all projects. The same goes for token sale platforms, which are often managed by centralized exchanges and their teams. Jigstack shows things can be done differently with blockchain technology and smart contracts.