IDO structures explained

Most Erebus IDOs will follow a structure similar to PancakeSwap IFOs:

• Capped, ~20% of total Guaranteed allocation, capped. We suggest around $300–1000 per address. 20% of IDO capital will be allocated to the capped addresses.

• Uncapped, ~80% of total. This allows for larger allocations / whales to enter. Users who aim to contribute more capital than is available in the pool will receive allocation pro-rata relative to their contribution and be refunded any overage pro-rata as well. 80% of capital will be allocated to uncapped addresses.

Any wallet with the necessary vANGEL is eligible to participate in an IDO. Each wallet is guaranteed some number of tokens — which would be paid for with an appropriate amount of deposited ANGEL. Any remaining ANGEL will be allocated a pro rata portion of tokens not otherwise allocated to wallet-guarantees.

Though some projects might choose a different structure, we believe an 20/80 split is best to achieve a solid quantity of token holders while ensuring the sale is oversubscribed.

Example 1: The 20/80 Split In Practice A project seeks to sell 10M tokens for $0.10 each, guarantees each wallet a maximum of 4,000 tokens, and 500 wallets participate. Then 2M tokens are sold via wallet guarantees (this is 20% of the total, assuming the project is following our recommended 20 capped/80 uncapped split).

If you deposited $2,400 of ANGEL to participate in the IDO, you would have $2,000 left after the purchase of the 4,000 guarantee. Many other wallets would have surplus balances too. Lets say the extra deposits total $1.6M of ANGEL. In this case, every wallet will effectively use half their extra deposits (which would total $0.8M) to buy the remaining 8M shares.

After the IDO, your wallet will have $1,000 of ANGEL and 14,000 tokens which were sold to you at $0.10.