This post explains the allocation process, and why we cannot predict each user’s allocation before the sale, and only calculate allocations after the sale ends.
This will make it easier to understand how this functions; we know locking your UST up unnecessarily and perhaps not getting the allocation you hoped for is frustrating. We are working to get unallocated UST returned to your accounts as quickly as possible.
While not knowing exactly what allocation you will get, you do know the bigger your Atlo Rating, the higher you rank and the larger your allocation. It is not FCFS, tiered or lottery. This also removes the need to rush into a sale. These are the benefits to the system.
CALCULATING ALLOCATIONS
The Atlo Rating is a score each user earns through participation in the platform. Allocations in sales are configured using the Atlo Rating and an algorithm designed for fair distribution (more on that later). Each launch is considered an allocation pool.
Let’s use an example and simplify it down to 2 people prefunding a launch with a raise target of 10 UST. Participant 1 has an Atlo Rating of 1, Participant 2 has an Atlo Rating of 2. The sum of both participants’ Atlo Ratings is 3.
A snapshot taken at the start of the sale would calculate allocations like this:
- Participant 1 : Atlo Rating of 1 / Total Atlo Rating of 3 * Total Raise.
- Participant 2 : Atlo Rating of 2 / Total Atlo Rating of 3 * Total Raise.
Therefore
- Participant 1 is allocated (1/3)*10 = 3.33 UST
- Participant 2 is allocated (2/3)*10 = 6.67 UST
This is an over-simplified version of it but illustrates how the Atlo Rating impacts allocation.
THE MINIMUM BUY
We’ve set a minimum allocation amount (100 UST) to our allocation process.
We do this because if we have no minimum, allocations could spread so thinly that no one gets a decent amount no matter how good their Atlo Rating. It also means participants would get an allocation, even a small one, through the barest minimum of participation.
For a system incentivizing effort, this makes no sense. We mentioned an algorithm earlier. This manages allocations on the top and bottom ends, so everyone gets a fair share of the raise, and the results aren’t top heavy.
THE END OF THE SALE
We can not tell anyone their allocation during or prior to a sale because we do not know which Atlonauts will participate. If we made predictions during the sale window, that data would be inaccurate the moment a new participant took part.
We’re working on ways to give guidance, but we’re very aware information can be mis-interpreted.
An estimate may be mistaken as an absolute number, and people would be understandably upset in finding out they could have funded more, or in fact are allocated less than they believed was the case after more participants entered the pool.
Once the sale ends we have complete data about how many people participated, their Atlo Rating, and the amount they funded. That’s when we have what we need to work out allocations.
When there are participants in the allocation pool allocated less than the minimum buy amount, we iteratively remove the participant with the lowest Atlo Rating. This reduces the number of participants until the person in the pool with the lowest Atlo Rating has an allocation greater than or equal to the minimum allocation amount of 100 UST. We also use a weighted algorithm (more on that below) so allocations are fairly distributed across all participants.
ALGORITHMS AND ALLOCATIONS
We use an algorithm to work out allocations. If you’d like to understand it better, here’s some useful reading.
We are using a weighted version, and this is a good demonstration using internet bandwidth.
Lastly, here’s a research paper, if you want to go deeper.
Our algorithm determines how much each person gets, based on their Atlo Rating. While the minimum buy amount prevents the tokens in the sale being distributed too widely, using a weighted formula also prevents the largest Atlo Ratings from consuming an unfair portion. This means allocations are more fairly distributed amongst participants.
THE $MINT SALE: ATLO RATING IN ACTION
Here’s some results from MintDAO’s IDO showing the Atlo Rating put into practise.
- 739 people participated in the sale.
- As it was overfunded, 705 received allocation: 95.4% of participants.
- On average, 98.5% of each participants’ prefund amount was allocated in $MINT.
- The average allocation size was $425.53.
- The smallest allocation was our $100 minimum participation amount. The largest allocation was $5000.
- The average Atlo Rating of those who received an allocation was 210.29.
- The lowest Atlo Rating to receive an allocation was 8.17 and the largest was 4789.56.
- 13 people with an Atlo Rating did not get allocation, and had their UST returned to their Atlo Account.
- 21 participants without an Atlo Rating did not get allocation, and had their UST returned to their Atlo Account.
HOW MUCH TO BUY?
Knowing how much to fund in any IDO is a personal decision, and different variables affect the answer for everyone. We’re working on getting better guidance during the sale as to your allocation.
It comes down to how much you can afford to have in the token. If you get all of it, that’s a great outcome. If you don’t, we’ll get unallocated UST returned to you quickly, so you’re ready to find the next gem.
