Mastering Crypto Launchpads: Key Terms and Definitions

The Decubate Launchpad glossary provides clear definitions of key terms used. For you, always available, always updated! Unsure about a specific term? Use Ctrl + F or Command + F to find the explanation of it quickly!

Glossary
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A

• Airdrop: Distribution of free tokens to the community or participants of a project.
• Allocation: The amount of tokens or funds assigned to a participant in a token sale.
• AMA (Ask Me Anything): An interactive session where project team members answer questions from the community.
• AML (Anti-Money Laundering): Regulations and procedures to prevent income from illegal activities, ensuring compliance and safety in the crypto space.
• APR (Annual Percentage Rate): The yearly interest rate earned through staking or other financial activities.
• APY (Annual Percentage Yield): The yearly interest rate earned through staking or other financial activities, including compounding interest.
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B

• BEP-20: A token standard on the Binance Smart Chain.
• Blockchain: A decentralized digital ledger that records transactions across many computers.
• Blockchain Explorer: A tool to view all blockchain transactions, addresses, and blocks.
• Bridge: A protocol enabling communication and token transfer between different blockchains.
• Burn Mechanism: Permanently removing tokens from circulation to reduce supply.
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C

• CEX (Centralized Exchange): An exchange operated by a central authority where users trade cryptocurrencies.
• Circulating Supply: The number of publicly available tokens circulating in the market.
• Compounding: The process of reinvesting earnings to generate additional earnings over time, increasing the overall value of an investment.
• Cross-chain: The ability of different blockchains to communicate and interact with each other.
• Crowdfunding is raising money from many people to fund a project or venture.
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D

• DAO (Decentralized Autonomous Organization): An organization governed by smart contracts and decentralized voting mechanisms.
• DeFi (Decentralized Finance): Financial services using blockchain technology that operate without traditional intermediaries.
• DEX (Decentralized Exchange): An exchange that operates without a central authority, allowing peer-to-peer trading.
• Dividend Token: A token that pays its holders dividends from the issuing company's profits.
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E

• ERC-20: A token standard on the Ethereum blockchain.
• Equity Token: A token representing ownership in a company, similar to traditional shares.
• EVM (Ethereum Virtual Machine): The runtime environment for executing smart contracts on the Ethereum blockchain, ensuring decentralized application functionality.
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F

• FCFS (First Come, First Served): A mechanism where the first participants to act are given priority in token sales or allocations.
• Fork: A split in a blockchain that creates two separate versions of the chain.
• Fractional Ownership: The ability to own a fraction of an asset, such as real estate or art, via tokenization.
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G

• Gas Fees: Transaction fees paid to miners or validators to process transactions on a blockchain.
• Gasless Transactions: Transactions that do not require the user to pay gas fees.
• Governance Token: A token that grants holders voting rights on project decisions and changes.
• Grace Period: A specified period after a deadline during which an action can be taken or a penalty is waived, allowing for flexibility and compliance.
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H

• Hard Cap: The maximum amount of funds a project aims to raise during a token sale.
• Hash Rate: The processing power of a blockchain network, typically measured in hashes per second.
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I

• ICO (Initial Coin Offering): A fundraising method where new cryptocurrencies sell their tokens to early investors.
• IDO (Initial DEX Offering): A fundraising method where new cryptocurrencies sell their tokens via a decentralized way, like Decubate.
• IEO (Initial Exchange Offering): A fundraising method where new cryptocurrencies sell their tokens via a centralized exchange.
• IMC (Initial Market Capitalization): The total value of a project's tokens at launch, calculated by multiplying the token price by the total supply.
• IMC excl. liq.: Initial Market Capitalization excluding liquidity, focusing on the value of tokens not allocated for liquidity pools.
• Interoperability: The ability of different blockchain networks to communicate and work together.
• Investors: Individuals or entities that provide capital to a project in exchange for tokens or equity.
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K

• KOL (Key Opinion Leader): Influential figures whose recommendations boost project visibility and credibility.
• KOL Round: Fundraising phase involving KOLs to create buzz and attract more investors.
• KYC (Know Your Customer): A process to verify the identity of participants in a token sale to comply with regulatory requirements.
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L

• Layer 1: The base layer of a blockchain, providing fundamental services and security.
• Layer 2: Solutions built on top of Layer 1 blockchains to improve scalability and efficiency.
• Learn-to-Earn (L2E): An initiative where participants earn tokens or rewards for engaging in educational activities.
• Liquidity Mining: The process of providing liquidity to a decentralized exchange in return for rewards.
• Liquidity Pool: A pool of tokens locked in a smart contract to facilitate trading on a decentralized exchange.
• Lock-up Period: A period during which tokens cannot be sold or transferred.
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M

• Main Sale: The primary phase of a token sale where the majority of tokens are sold.
• Market Cap: The total value of a cryptocurrency, calculated by multiplying its price by the circulating supply.
• Mint: The process of creating new tokens.
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N

• Node: A computer that participates in a blockchain network by validating and relaying transactions.
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O

• Off-chain: Transactions or data storage occurring outside of the blockchain.
• On-chain: Transactions or data storage occurring on the blockchain.
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P

• Partnership: Collaboration between different projects or companies to achieve mutual benefits.
• Presale: An early token sale phase where tokens are sold at a discount before the main sale.
• Private Sale: A token sale phase limited to a select group of investors.
• Public Sale: A phase in a token sale where tokens are made available to the general public, often following earlier fundraising rounds such as private sales or pre-sales. 
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R

• Refund Policy: Terms and conditions under which users can request and receive a refund for their investment or purchase.
• Roadmap: A detailed plan outlining a project's future goals and milestones.
• Rollup: A Layer 2 scaling solution that batches multiple transactions into a single transaction for efficiency.
• Rug Pull: A scam where developers abandon a project and run away with investors' funds.
• RWA (Real-World Assets): Physical assets like real estate or commodities that are tokenized on the blockchain, enabling easier and more efficient trading, management, and fractional ownership.
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S

• Scalability: The ability of a blockchain to handle a growing number of transactions.
• Scam: Fraudulent activity designed to deceive investors and steal funds.
• Security Audit: A thorough examination of a project's code and protocols to ensure safety and reliability.
• Seed Round: The initial phase of fundraising for a project, typically involving a small group of investors.
• Smart Contract: A self-executing contract with the terms of the agreement directly written into code.
• Soft Cap: The minimum amount of funds a project aims to raise to proceed with development.
• Staking: The process of locking up tokens to support the network and earn rewards.
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T

• TGE (Token Generation Event): The event where new tokens are created and distributed to participants.
• Token Sale: The process of selling tokens to raise funds for a project.
• Token Swap: The exchange of one type of token for another.
• Tokenomics: The economic model and distribution of a project's tokens.
• Total Supply: The total number of tokens that will ever exist for a particular cryptocurrency.
• TVL (Total Value Locked): The total value of assets staked or locked in a DeFi protocol, indicating the platform's popularity and trustworthiness.
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U

• Utility Token: A token that provides access to a product or service within a project's ecosystem.
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V

• Validator: A participant in a blockchain network that validates transactions and maintains the blockchain.
• VC (Venture Capital): Investment funds venture capitalists provide to startups and small businesses with high growth potential.
• Vesting Schedule: A timeline outlining when tokens will be released to participants or team members.
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W

• Web3: The next generation of the internet, focusing on decentralized applications and blockchain technology.
• Whitelist: A list of approved participants eligible to join a token sale.
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Conclusion

We hope this glossary is a foundational resource for anyone looking to understand the intricacies of crypto launchpads. By familiarizing yourself with these terms, you can confidently navigate the Launchpad space and make informed decisions about your investments and participation in blockchain projects.

For more insights and updates, continue exploring our resources at Decubate.

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