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How to Set Up Token Parameters and Sale Terms

Overview​

After selecting the appropriate asset type for your offering, the next critical step is configuring your token parameters and sale terms. This configuration determines how your tokens will function, how they'll be priced, and the structure of your fundraising round. This guide will walk you through the process of setting up these essential parameters to ensure your token sale aligns with your business objectives and regulatory requirements.

Prerequisites​

Before configuring your token parameters and sale terms, you should:

  • Have an active issuer account on the platform
  • Have created a new deal and selected an asset type
  • Have determined your fundraising goals and timeline
  • Have consulted with your legal and financial advisors regarding appropriate sale terms
  • Understand the regulatory requirements for your chosen asset type and jurisdiction

Step-by-Step Instructions​

Step 1: Access the Token Configuration Page​

  1. Log in to your issuer account
  2. Navigate to your in-progress deal (or create a new one)
  3. Proceed through the deal creation steps until you reach the "Token Parameters & Sale Terms" section
  4. If returning to an in-progress deal, select "Edit" on the Token Parameters card

Step 2: Configure Basic Token Information​

  1. Enter a token name (e.g., "AcmeCorp Equity Token")
  2. Enter a token symbol/ticker (e.g., "ACME")
  3. Select the blockchain network for token deployment
    • Review the available networks and their associated fees
    • Consider factors like transaction speed, security, and user accessibility
  4. Select the token standard appropriate for your asset type
    • ERC-20 for fungible tokens
    • ERC-721 for non-fungible tokens
    • ERC-1400 for security tokens with transfer restrictions
  5. Enter the total token supply (the maximum number of tokens that will ever exist)

Step 3: Configure Token Economics​

  1. Set the token price
    • Enter the price per token in your chosen currency
    • If offering tiered pricing, check the "Enable Tiered Pricing" option
  2. Configure minimum and maximum investment amounts
    • Set the minimum investment amount per investor
    • Set the maximum investment amount per investor (if applicable)
  3. Define your fundraising targets
    • Set your soft cap (minimum amount to consider the offering successful)
    • Set your hard cap (maximum amount you will raise)
  4. Configure token distribution
    • Specify the percentage of tokens available in this offering
    • Allocate remaining tokens (team, advisors, future offerings, etc.)
    • Set vesting schedules for each allocation if applicable

Step 4: Configure Sale Structure​

  1. Select your sale structure type:
    • Single Round: One-time offering with fixed terms
    • Multiple Rounds: Sequential offerings with potentially different terms
    • Continuous Offering: Ongoing sale without a specific end date
  2. For tiered sales, configure each tier:
    • Set the tier name (e.g., "Early Bird", "General Sale")
    • Set the token price for each tier
    • Set the allocation for each tier (number of tokens or percentage)
    • Set eligibility requirements for each tier (if applicable)
  3. Configure investor limits per tier (if applicable)

Step 5: Set Sale Timeline​

  1. Set the sale start date and time
  2. Set the sale end date and time (if not a continuous offering)
  3. For multiple rounds or tiers:
    • Set the start and end dates for each round/tier
    • Configure any automatic progression rules between tiers
  4. Set the token distribution date (when investors will receive their tokens)

Step 6: Configure Investor Restrictions​

  1. Select eligible investor types:
    • Accredited investors only
    • Non-accredited investors allowed (with appropriate exemptions)
    • Qualified institutional buyers
    • International investors
  2. Set jurisdiction restrictions
    • Select allowed countries
    • Set any state/province level restrictions
  3. Configure KYC/AML requirements
    • Select required verification levels
    • Set any additional compliance requirements

Step 7: Configure Token Functionality​

  1. Set transfer restrictions:
    • Lock-up period after token distribution
    • Whitelisted addresses only
    • Regulatory transfer restrictions
  2. Configure dividend/revenue share settings (if applicable):
    • Distribution frequency
    • Distribution method
    • Calculation formula
  3. Set voting rights (if applicable):
    • Voting weight per token
    • Eligible governance decisions
    • Voting mechanism

Step 8: Review Smart Contract Parameters​

  1. Review the generated smart contract parameters
  2. Customize advanced parameters if needed (consult with your technical advisor)
  3. View a summary of gas fees and deployment costs

Step 9: Save and Confirm Configuration​

  1. Review all token parameters and sale terms
  2. Click "Save Configuration" to store your settings
  3. Click "Preview" to see how your offering will appear to investors
  4. Make any necessary adjustments
  5. Click "Confirm and Continue" to proceed to the next step of deal creation

Best Practices​

  • Align with Market Standards: Research comparable offerings in your industry to understand typical token parameters and sale terms
  • Balance Accessibility and Fundraising Goals: Set minimum investment amounts that balance investor accessibility with administrative efficiency
  • Plan for Different Scenarios: Configure soft and hard caps that account for varying levels of investor interest
  • Consider Long-term Token Economics: Design your token distribution and vesting schedules with long-term value and alignment in mind
  • Ensure Regulatory Compliance: Verify that your sale structure and investor restrictions comply with relevant regulations
  • Test Investor Experience: Use the preview function to experience the investment process from the investor's perspective
  • Document Your Rationale: Keep records of why you selected specific parameters for future reference and regulatory inquiries

Troubleshooting​

Common Issues​

  1. Unsure About Appropriate Token Standard

    • Solution: Click on the "Token Standards Guide" for detailed information or consult with the platform's technical support

  2. Difficulty Setting Compliant Investment Limits

    • Solution: Use the "Regulatory Compliance Checker" tool to verify your settings against current regulations

  3. Token Economics Calculation Errors

    • Solution: Use the built-in validation tool to check for inconsistencies in your token distribution percentages

  4. Blockchain Network Selection Uncertainty

    • Solution: Review the network comparison chart or schedule a consultation with the platform's blockchain specialists

  5. Sale Timeline Conflicts

    • Solution: Use the timeline visualization tool to identify and resolve any overlapping or conflicting dates

Getting Help​

If you encounter any issues during the token configuration process:

  1. Click on the "Help" icon in the top right corner
  2. Select "Token Configuration Support"
  3. Choose between live chat, email support, or scheduling a consultation
  4. For technical questions about smart contract parameters, select "Technical Support"
  5. For regulatory questions, select "Compliance Support"