🌊Overflow Method
Why Overflow method?
Zetachainpad strategy for fundraising makes use of an overflow mechanism, which guarantees fair token distribution to a varied set of investors and provides contributors with freedom over the time of their contributions. Investors are able to join with their ETH at any moment during the live fundraising event, in contrast to the first-come, first-served method (FCFS), which requires investors to submit their ETH requests in order.
The total contribution amount may exceed the Hard Cap, and token allocation will be determined using the following formula:
(Number of tokens available for sale) * (ETH contributed by you / Total ETH contributed)
Any unspent ETH will be refunded to investors upon claiming their purchased tokens.
Here is an Scenario:
Let's take a look at a hypothetical situation that's comparable to the introduction of the $ENGRY token on Zetachainpad. Let's say the fundraising event has a hard cap of $150,000 in ETH, and there are a total of 400,000 $ENGRY tokens available for purchase at a price of $0.5 each.
You contribute $3,000 worth of ETH during the allotted time frame for the fundraising event, which is live for a period of 24 hours.
The fundraising event concludes after twenty-four hours with a total of three hundred twenty thousand ether (ETH) having been collected; this amount represents 213.33% of the hard cap.
According to the calculation for the overflow, (3000/320000) times 400000 equals 3,750
If you contributed $3,000 worth of ETH during the fundraising event, then, according to the overflow approach, you would be entitled to about 3,750 $ENGRY tokens in exchange for your contribution.
Disadvantages of using "First-Come, First-Served" (FCFS):
Unpredictable competition leading to uneven access to resources or opportunities.
Higher risk of mistakes due to rushed decision-making in fast-paced environments.
Unequal access to opportunities for participants without equal access to information or resources.
Emotional decision-making driven by urgency and competition, increasing the risk of impulsive choices.
Potential for congestion and technical issues in highly congested networks or platforms, leading to delayed or failed transactions.
It's important to thoroughly understand the specific context and circumstances of FCFS opportunities, and make informed decisions based on your own risk tolerance. Consulting with professionals or seeking expert advice can be beneficial in navigating complex or time-sensitive situations in the crypto space or any other investment context.
Overflow Claiming Unspent ETH
Once the initial allocation and overflow distribution stages are completed, and if there are still unspent ETH in the overflow pool, participants who are eligible for a share of the overflow funds can interact with the token sale smart contract to claim their portion. The smart contract will have a built-in mechanism that allows participants to initiate the claim process, usually by calling a specific function or sending a transaction to the contract.
Upon triggering the claim process, the smart contract will verify the participant's eligibility based on their initial contribution and calculate their share of the remaining overflow funds. The participant's share will be proportional to their initial contribution in relation to the total contributions made during the token sale. The smart contract will then transfer the participant's share of the unspent ETH from the overflow pool to their registered wallet address.
It's important to note that the specific steps and requirements for claiming unspent ETH from the overflow pool may vary depending on the implementation of the Overflow Method Presale and the rules set forth in the smart contract. Participants should carefully review the terms and conditions of the token sale and follow the instructions provided by the organizers to ensure a successful claim process.
Note:
Prospective investors are advised to conduct thorough and independent research, carefully evaluating the risks associated with the investment they are considering, prior to making any financial commitment. Even with access to information, it is crucial to ensure that all necessary research has been conducted before arriving at a decision.
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