Spores Network to introduce Safeguard Program
As part of our strive to provide our community with more assurance when they choose to invest with us, we have decided to launch “Spores Safeguard” to help identify projects that have passed our due diligence, as well as agreed to and passed a set of more stringent criteria, in addition to our usual criterion. More information about the criterion will be provided below:
- Projects that have passed our due diligence and wish to take part in our safeguard protocol will be branded as a “Spores Safeguard Guaranteed”.
- Minimum liquidity lock-up requirement. Spores will require a minimum amount of liquidity to be added on a DEX according to the total raise. It will be decided case by case according to the total raise and other circumstances, but it will never be less than $250k for a specific trading pair. The liquidity needs to be locked for at least 9 months and longer if the whole vesting period passes that. Please note: Planned DEX / AMM upgrades, such as the one from PancakeSwap V1 to V2, will also be taken into consideration, when deciding lockup time.
- Spores will require mandatory lock-ups for “Team Tokens” such as team, development, marketing, advisory etc tokens. These tokens need to get locked according to their vesting schedule, no exception. Proof of lock is a must before launch. Any sign of more tokens in circulation than the specified DEX listing amount will prompt an immediate refund or at least a poll for that.
- Distribution timeline compliance. Spores will require a preset distribution timeline to be complied with. If a sale partner allows a certain party to get their tokens before Spores investors, we will find a way to compensate our investors. If the sale partner acts maliciously or makes an error in regards to the distribution that causes losses to our investors, we will withhold an appropriate amount of the unvested funds in order to compensate the loss to our investors.
- Vesting schedule compliance. Spores will only send funds in batches according to the vesting schedule in order to be able to refund the community in the cases of project abandonment, hacks, exploits, system breakdown or malicious activity. For instance, if the contracts gets hacked or any other unforeseeable thing happens (force majeure), and the token price suffers due to that, we will refund or at least set up a poll to refund the rest of the distributions.
- Roadmap compliance. Spores will make sure the initial project’s roadmap is followed and doesn’t put our investors’ money in jeopardy, we reserve the right to refund the rest of the unvested amounts. For instance, if the project decides that they are going to transfer their marketing funds to enrich the team members, that will naturally cause a finable, compensable event and also may cause a refund for the rest of the distribution amounts. All the money withheld as fines will be transferred to the sale participants, investors in that particular sale.
- Minimum time to send tokens before TGE. Spores will require all the tokens sold in a sale (IDO, Private or Seed) through Spores to be sent to Spores at least 72 hours before the launch to make sure our community will get their tokens in time, without any delays, no exceptions.
- Maximum time between a sale and its TGE. Spores allows no more than 30 days between a sale and its TGE. Our aim is to have all the sales 24 to 72 hours before the listing to keep momentum intact. If a listing is postponed until further notice, we will automatically refund the sale if the delay is for 21 days or more. We will then have another sale date for the project close, 24 to 72 hours to the new listing date. Spores never wants to withhold investors’ funds more than what is needed.
- Spores will require token audits from reputable audit companies to ensure that there are no malicious functions in the contract such as rug pull allowing tax systems, proxy contracts, honeypots, centralized blacklisting (other than possible launch related bot prevention), minting or other types of malicious functions.
- Price fall threshold: Spores will require projects to stay at and/or above their IDO price until at least 50% of the distribution is complete.
The TGE amount will pass safeguard if the average price stay above or equal to IDO price within 24h after listing,
For the remaining vesting, if the price (based on the historical average daily price from Cryptorank.io ) falls below IDO price and stays at that level for more than 3 days, Spores reserves the right to do a total or partial refund for the rest of the distributions.
Please be advised that we could be flexible with some terms if the project understandably is unable to meet the full set of conditions due to certain reasons. However, it is imperative that they adhere to the most critical terms — token price related to the safety of our investors’ funds.