Pylon Protocol to Develop Token Launchpad on Terra
- Pylon will launch Pylon Gateway, a token launchpad and crowdfunding platform for the Terra blockchain.
- Investors will be able to deposit Terra’s UST to earn project tokens and governance rights.
Shutterstock
According to a Terra blog post from 15 June, Pylon has become the fifth application to be incubated by the Terra team directly, following Chai, Mirror, Anchor, and Nebula.
Pylon Protocol’s first integrated use case on Terra will be Pylon Gateway, a token launchpad and crowdfunding-via-yield platform. The platform will offer Terra users yield-bearing fundraising options for various new applications launching on the blockchain.
Investors can deposit Terra’s algorithmic stablecoin $UST to a pool to earn project tokens, governance rights, and other designated perks. However, unlike other IDO platforms, Pylon Gateway will enable investors to withdraw their full principal after the pledged vesting period to claim project tokens and other corresponding rewards.
The initial principal deposited in $UST is fully returned and project funding is allocated through yield rather than upfront capital expenditure. This enables investors to make “no-loss,” value-additive investments that are principal-protected, Pylon explained in the announcement.
Initially, investors will only be able to deposit $UST to Pylon Gateway’s customized Pylon Pools, but other Terra-based cryptocurrencies will be added in the future. The platform is also looking into enabling other flexible funding options for projects, including dutch auctions, blind auctions, and batch auctions. Future projects might also be able to provide investors with rewards in the form of NFTs, participatory rights, or exclusive memberships.
Later versions of Pylon Gateway will also introduce instant loans that pay themselves off via future yields from investor deposits. This will support project teams that may need upfront capital for early bootstrapping.
- Blockchain network Terra said its website was compromised by hackers over the weekend, and warned users against ongoing phishing scams.
- The platform later froze its website to prevent the hackers from exploiting it, and reminded users to avoid websites with the terra.money domain for now.
Shutterstock
- Terraform Labs’ founder Do Kwon and CFO Han Chang-Joon were found guilty and sentenced to four months in prison for their use of forged Costa Rican passports.
- The Basic Court in the country’s capital Podgorica clarified that the time both individuals spent under detention in the country will also be taken into account.
- A district court in South Korea ruled that the token was not a security, noting that it was “difficult to see LUNA as financial investment product regulated by the Capital Markets Act”.
- Using this decision, the court dismissed the prosecution’s request to confiscate properties owned by Terraform Labs’ co-founder Hyun-seung Shin.