FAQ

Introduction

What is Baseline?

• Baseline is a tokenomics engine with features that keep values within the token itself. It revolutionized how tokens launch and reach maturity.

What is BLV?

• BLV, or Baseline Value, is the guaranteed floor price for a Baseline token, ensuring that the token always has a minimum value.

What does the BLV do?

• BLV protects token value by guaranteeing that the token can always be sold at or above a certain price, even in volatile market conditions.

What does Baseline’s market making do?

• Baseline’s market making automates liquidity management, ensuring that there’s always enough liquidity to support the token’s price.

What is Baseline lending?

• Baseline lending allows users to borrow against their tokens without the risk of liquidation, using the token’s intrinsic value(BLV) as collateral.

What is Baseline looping facility?

• The Baseline looping facility allows traders to leverage/deleverage their positions without the risk of liquidation.

What is Afterburner?

• Afterburner is a randomized leveraged buy-back and burn mechanism within Baseline. It uses leverage to repurchase tokens from the market and then burns them, reducing the overall supply and increasing the value of the remaining tokens.

What is the total supply of the baseline token?

• The total supply of the Baseline token is determined by the system based on predefined conditions, which are tied to the project's growth and performance to maintain balance and solvency.

What is the FDV of a Baseline token?

• At Baseline, FDV and market cap are the same because the total supply of tokens is fully circulating, with no hidden or locked tokens. This transparency ensures that the market cap accurately reflects the entire value of the token supply, making FDV and market cap identical.

What makes Baseline tokens different from other tokens?

• Baseline stands out by automating market making, providing a guaranteed price floor, and allowing for liquidation free loans and leveraged positions. These features ensure stability and long-term growth, making it a unique and innovative solution in the tokenomics space.

Can tokens in Baseline still experience significant price drops?

• While Baseline provides a guaranteed floor price (BLV) to protect against extreme losses, token prices can still fluctuate above the floor based on market demand. However, the system is designed to minimize severe drops by ensuring liquidity and stabilizing token value.

Who should consider using Baseline?

• Baseline is ideal for traders looking for a secure environment to trade tokens, project founders who want to ensure the long-term success of their tokens, and early investors seeking protection from volatility. It’s a system designed for those who prioritize stability, transparency, and sustainable growth.

Questions From Project Founders

How is the process different than launching a regular token?

• Launching a Baseline token is automated and designed to protect your project’s value. Unlike traditional launches, you don’t need to manually manage liquidity or find a market maker with potentially toxic terms. Baseline’s system handles these aspects for you, allowing you to focus on building your project.

What are some things I need to prepare?

• The goal of Baseline is to let you focus on building a great product while worrying less about the complexities of token management. To prepare for launching a Baseline token, you’ll need to define your project’s goals, determine the proportion of tokens for private and public sales, and understand your liquidity needs. The Baseline system will handle the rest, ensuring that your token’s value is protected and aligned with your project’s long-term success. Completing a due diligence questionnaire will help us tailor the system to your specific needs, so you can stay focused on what matters most—building an amazing product.

How is Baseline’s market making different than traditional market making?

• Baseline’s market making ensures that the value your token generates stays within your project. Unlike traditional market makers, who may extract value, Baseline’s automated system keeps your token’s value locked in, directly benefiting your project and community.

How is the IBLV (Initial Baseline Value Event) going to work?

• We generally recommend a public bootstrap that’s open to communities. With Baseline, you gain access to an existing community and more flexibility in your IBLV methods, thanks to our partnerships with various launchpads. This approach lets you tailor IBLV to your project’s specific needs while reaching a broader audience.

What do I need to sacrifice to be a Baseline token?

• The system controls 100% of your token supply, so early private rounds need to stay proportionate to the total amount you're raising. This ensures steady floor price growth, protecting your project’s value. You have the flexibility to adjust this, but the floor may grow slower depending on your choices.

How does the system know when to print new tokens?

• The system mints new tokens based on predefined conditions tied to your project's growth and performance. When liquidity and demand metrics reach certain thresholds, new tokens are printed to maintain balance and ensure the protocol remains solvent.

As my project grows bigger, does it take more capital to move the price?

• Yes, as your project grows and more capital is locked in, it takes more capital to move the price. Baseline’s liquidity model ensures a stable and sustainable price floor, protecting your token’s value as it scales.

How much can I raise for my private round?

• The amount you can raise depends on your operational needs, how it aligns with your public sale, and expected post-launch volume. If you're unsure, we're here to help. Fill out our due diligence questionnaire and book a call with us to find the best solution.

Seems complicated and novel, how do I convince my investors?

• Baseline might seem complex at first glance, but that’s part of its strength. It’s designed to protect and grow the project’s value in ways that traditional methods can’t. The system guarantees a price floor, ensuring that the token’s value is always safeguarded, even in challenging market conditions. Baseline also automates liquidity management and aligns investor rewards with the project's success, significantly reducing common risks. Case studies from other projects have shown impressive results. This isn’t just another crypto venture; it’s a groundbreaking approach that positions the project as a leader in the space, offering a safer and more promising investment for the long term.

Questions From Angels/Investors

As an angel investor: how are baseline tokens better a regular crypto token investment?

• As an early investor in a Baseline token, you gain unique, liquidation free leveraged positions tied to the project's growth. This means your potential gains increase with the project’s success, offering both protection through a price floor and alignment with long-term value creation.

What is growth-based vesting?

• Growth-based vesting in Baseline rewards investors based on a project's success, giving them higher potential gains that grow with the project's achievements, rather than just unlocking tokens over time.

What does it look like to invest in a Baseline token as early investor?

• Generally the same process, except the pay out structure is more preferable among investors. Unlike conventional methods where tokens gradually unlock over time, growth-based vesting in Baseline offers investors unique liquidation free leveraged positions that amplify their potential gains while aligning with the project's long-term vision.

What key factors should I focus on when evaluating a Baseline token investment to determine if it's a strong project?

• With Baseline eliminating many common issues around token distribution, you can focus on the real potential of the project. Prioritize high-volume and liquidity potential, strong Afterburner revenue, clear project maturity, innovative offerings, and product market fit. These factors indicate a project's true growth potential.

How is growth-based vesting better than time-based vesting?

• Growth-based vesting is better than time-based vesting because it aligns investor rewards with the actual success of the project, not just the passage of time. This approach motivates all stakeholders to focus on long-term growth, ensuring that rewards increase as the project thrives, rather than unlocking on a fixed schedule regardless of performance.

Can I exit my position anytime?

• Investors can exit their position, but to profit, the token price needs to be higher than their leveraged position. This ensures that exits are tied to the project’s growth and success, aligning rewards with performance.

Does the loop position ever gets expired?

• Depending on your terms, projects can set an expiry date on your position, but it’s not required. If there’s no expiry date, your position remains active as long as the project continues to grow and maintain its value. This flexibility allows for tailored investment strategies that align with both the project’s and the investor’s goals.

What are some risks with growth-based vesting?

• While growth-based vesting aligns rewards with a project’s success, there are some risks to consider. If the project doesn’t perform as expected, your returns could be lower than with traditional vesting. However, unlike traditional vesting where you might struggle to sell in an illiquid pool, Baseline ensures that you can always exit through the floor price, providing a safety net for your investment.

If a project underperforms, how does that affect my investment in Baseline tokens?

• If a project underperforms, your returns might be lower compared to more successful projects. However, Baseline's price floor ensures that your investment is protected from the extreme losses often seen in traditional crypto investments, giving you a level of security even in less favorable scenarios.