In a bid to adapt to the increasing demand of token sales on its Launchpad platform, Binance is now experimenting with a new format. The exchange will use a lottery format for the next project listed on Binance Launchpad. The platform currently follows a first-come first–seve system.
The official blog post has detailed the Lottery ticket allocation system. Users will be required to hold Binance Coin (BNB) over 20 days leading up to the day of the lottery. Depending on the number of BNB tokens, users will be eligible for a maximum of 5 lottery tickets per account. The allocation is 1 lottery ticket per hundred tokens. For instance, if you have 100 BNB, you will get 1 lottery ticket whereas more than 500 BNB will get you 5 lottery tickets, increasing their chances of participation.
The lottery draw will be done through a transparent and randomised system which will select lottery tickets randomly. Prior to the lottery date, investors will be given a chance to select how many lottery tickets they wish to enter, depending upon the BNB holdings. Binance Launchpad will also announce the potential number of lottery ticket winners and the allocation amount corresponding to each ticket before the token sale. The user essentially commits to purchasing the amount of tokens corresponding to the winning lottery ticket. More details can be found in the official blog post.
Binance Launchpad has revived the second ICO wave of sorts, through a string of high demand token sales – BitTorrent, Fetch.AI and Celer Network.
(Image credit: Binance Blog)