What is a Token?
A token is a digital asset created and managed on a blockchain network. It represents a unit of value and can be used for various purposes, such as store of value, currency, utility, governance, and more.
Here are some common reasons why projects may launch their own token:
- To raise funds for their project through an Initial Coin Offering (ICO) or Initial Token Offering (ITO).
- To create a new form of currency that can be used within their ecosystem
- To provide users with incentives for participating in the project or contributing resources
- To facilitate governance and decision-making within the project’s community
- To enable staking or other forms of token-based rewards
- To create a tradable asset that can be used for speculation or investment
- To create a dApp that relies on a native token for functionality or value exchange
- To establish a unique identity and brand for their project.
How a Token is Launched in a Traditional Way
Launching a token through the traditional route can be a complex and expensive process, which can take months to complete. It involves hiring a developer to create the token, auditing the smart contract, using a multi-sender tool to distribute funds, and marketing the token to build trust and legitimacy.
To elaborate further, the traditional process of launching a token can be broken down into the following steps:
- Developer: Firstly, a company needs to find and contract a developer to create their token. This process can take around 3+ months and can cost up to $10,000 to create the contract.
- Audit: Secondly, the smart contract needs to be audited by a reputable audit firm to ensure that it is secure and free of vulnerabilities. This process can take months and cost between $10,000 to $50,000, depending on the complexity of the smart contract.
- Investor Dashboard: Once the smart contract is ready, a multi-sender tool is used to send money out to investors. This process can cost around $150 per batch.
- Marketing: Finally, a significant amount of marketing is required to build trust and prove legitimacy for the token. This can include creating a website, whitepaper, and other marketing materials, and can cost between $10,000 to $100,000.
Apart from the above steps, designing the token, researching the market and testing the smart contract are also critical components that can significantly add to the cost and time of the traditional token launch process.
How Propel Helps to Streamline the Token Launch Process?
However, with Propel’s full-blockchain infrastructure solutions, launching a token can be streamlined and made more accessible for companies. Propel offers sound solutions and auditing compliance throughout the development process, from ideation to the final line of code. Each Propel solution targets specific blockchain requirements while also addressing the issue of readily available infrastructure.
Some of the benefits of using Propel for launching a token are:
- Reduced Time: With Propel, companies can launch a token in a shorter time frame and without the need for specialized technical knowledge.
- Cost-Effective: Propel offers affordable infrastructure solutions that eliminate the need for companies to spend large amounts of money on development, auditing, and marketing.
- Expertise: Propel’s team of experts has years of experience in blockchain and can provide technical and strategic guidance to companies launching tokens.
- Flexibility: Propel’s solutions are flexible, enabling companies to customize their token launch process to fit their specific needs.
Propel also offers Investor Dashboard that enables companies to send tokens to investors with just a few clicks, reducing the time and cost of this process significantly.
In conclusion, launching a token in the traditional way is a complex and expensive process that can take months to complete. Propel provides an affordable, easy-to-use, and flexible infrastructure that streamlines the token launch process and reduces the time and cost involved. With Propel, companies can launch their token quickly and efficiently, without compromising on security and compliance.