Differentiate your legitimate blockchain platform from scam blockchains via decentralized vesting.
Since the start of the cryptocurrency era in 2009, with the launch of Bitcoin (BTC), there’s been anexponential growth of different cryptocurrencies. Along the way, the market has experienced a number of booms and crashes, the latter mainly arising from a swell number of scam projects rising in tandem with
the bullish market.
During the ICO market of 2017, blockchain-based NFTs and more recently, the crazy DeFi boom many scam projects were developed with no use case or utility. Shortly after, the value of these projects collapsed or developers “rug pulled” investors as their tokens went to zero. However, the vast number of scam projects caused negative publicity causing some legitimate projects to close down or lack sufficient investment to build.
What if there was a definite way to tell a scam from a legitimate project? Most probably, scams would be easily identified hence most of investors’ money would be invested into the right projects boosting the crypto industry as a whole.
One project is aiming to distinguish scammy projects from legitimate ones using its decentralized multi- blockchain vesting solution – Locklet Finance.
Introduction to Locklet Finance
Locklet Finance is a decentralized vesting platform aiming to help users distinguish scam projects from legitimate ones. According to its website, Locklet Finance “allows any crypto-currency holder to create more or less complex vesting clauses according to their need and have them executed over the desired duration”.
Serious projects can now be cryptographically distinguished and differentiated from scam tokens and blockchains.
Who is Locklet built for?
The platform is available for the vast crypto community to make sure every dollar is spent on a real project. Locklet has been designed for entrepreneurs, teams, hedge funds, business angels, project communities and developers to ensure transparency in investments. The users can create vesting clauses for the founders of a project, ensuring the team works on their project fully and the community is protected from a possible team exit.
One of the areas in crypto expected to benefit most from Locklet is yield farming products, which are flooding the DeFi market with scammy farms. Using Locklet, any holder of any token (or participant in a yield farm), can now ask the project team to lock their share of tokens in order to prove to the community that they are not there to rug pull. Moreover vesting clauses can also be drafted for private investors to
lock their funds.
The native Locklet Finance Token (LKT)
Locklet’s vesting platform runs on its native token, LTK, a multi-chain token built on Ethereum and the Binance Smart Chain (BSC). The token allows users to pay for services and fees on Locklet’s vesting platform. The platform burns fees to reduce the supply of LTK in circulation – boosting the value of the remaining tokens.
“At transaction time, 45% of the total fee amount is burned, 45% is redistributed to the stakers and 10% is acquired by the Locklet foundation,” a statement on the website reads.
The team is planning to build the token on more blockchains in the future – Tron, NEO v3, and Huobi ECO Chain (HECO) , the current focus for the dev team.
Utility of the LTK token
LTK token offers utility to its holders and users on the Locklet Finance vesting platform. Holders of LTK can enjoy several benefits from the token including:
● Create or revoke vesting and pay the associated fees in $LKT.
● Stake your $LKT to earn part of the platform’s collected fees (more LKT without supply inflation).
● Hold a natively deflationary asset giving you value in the long term.
● Actively contribute to Locket’s future through governance. You can vote for proposals using LTK tokens such as the new chain implementations, adjustment of creation and revocation fees, etc.
A maximum cap of 150 million LTK tokens is in existence with the burning schedule meaning there will be a lot less in the future. A private sale was completed earlier in the year with a total of 10 million LTK
tokens being available and a further 50 million LTK tokens will be offered in a public sale on July 12, 2021.
Distribution of LTK
The distribution of the LTK tokens is as follows:
● Public and Private sale: 57%
● Foundation: 22%
● Team: 8%
● DEX and CEX liquidity: 7%
● Liquidity incentives: 3%
● Community reward pool: 3%
Conclusion
As decentralized finance takes over the finance world, it will be key for the market to distinguish scam projects from legitimate ones. With solutions such as Locklet Finance, transparency will be enhanced across the crypto community whether you are a user, developer, investor, venture capital, or a partnering corporation.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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