Interpretation of Tabi Chain Public Sale: Dutch Auction + Refund Mechanism for Diverse Revenue Strategies

Author: TokenMore

The modular game public chain Tabi Chain based on Cosmos will open for public sale on June 13. This public chain has secured $11 million in funding, with investors including well-known institutions and individual investors such as Binance, HashKey, and Feng Bo. It has also established partnerships with prominent Web3 protocols like EigenLayer/Bera Chain and Web2 gaming giants like Blizzard Entertainment/EA Sports.

Tabi Chain is currently in a testnet phase and will launch its mainnet in the third quarter. More than 20 Web3 native games and Web2 ported games are set to be deployed in the Tabi ecosystem.

Upgraded Dutch Auction for Fairer Price Discovery

During the public sale of Tabi Chain, 400 million TABI will be sold, accounting for 4% of the total token supply, distributed in the form of seedTABI (which can be converted to TABI tokens). SeedTABI can be claimed after the Token Generation Event (TGE).

The public sale will be conducted in a Dutch auction format, divided into three rounds, each lasting 24 hours, with a maximum sale limit of 133,333,333 seedTABI per round. The starting price for each auction will be $0.5 (settled in ETH) and will decrease linearly over time, down to a minimum of $0.1. The auction ends when the total value of ETH contributed by all buyers equals the product of the current seedTABI price and the total amount of seedTABI for that round, with seedTABI allocated based on the proportion of ETH contributed by buyers.

The Dutch auction method aims to allow the market to complete price discovery rather than having the project team set the price directly. However, conventional Dutch auctions or LBP methods have drawbacks, as early entrants often pay a higher cost. The seedTABI public sale adopts a uniform pricing method, achieving price discovery while allowing all buyers to purchase seedTABI at the same fair market price. Under this rule, locking in an early entry amount may be the best choice, as the price drops, ensuring that the amount does not shrink while also obtaining a higher-than-expected token allocation.

Flexible Conversion Strategy for Continuous Earnings

According to Tabi Chain's economic model, holding seedTABI will grant holders a share of the protocol's fee dividends within the Tabi Chain ecosystem and voting rights, enjoying continuous ecological earnings and potential bribery benefits. Public sale buyers can choose to hold seedTABI long-term to capture ecological earnings or flexibly select a conversion period to convert seedTABI into TABI:

• 0-89 days conversion: Convert to 20% of TABI, with the remaining 80% of seedTABI being burned;
• 90-179 days conversion: Convert to 30% of TABI, with the remaining 70% of seedTABI being burned;
• 180-269 days conversion: Convert to 50% of TABI, with the remaining 50% of seedTABI being burned;
• 270-330 days conversion: Convert to 70% of TABI, with the remaining 30% of seedTABI being burned;
• Over 330 days conversion: Convert to 100% of TABI.

The conversion mechanism of seedTABI is more flexible compared to conventional public sale lock-ups, allowing holders to set different conversion strategies based on their investment habits. The yield potential of seedTABI enables long-term value investors to maximize returns, while the tokens consumed by early conversion will be burned, further enhancing the scarcity of TABI.

Refund Mechanism for Price Drop, Deriving Multiple Earnings Strategies

The most notable feature of the seedTABI public sale is the introduction of a refund mechanism. If the price of TABI tokens is below the average price of the three rounds of public sale on the 330th day after the TGE, the refund mechanism will be triggered. Public sale participants can apply for a refund using the wallet that received seedTABI within a week (refunds will be issued in stablecoins), with a maximum refundable amount of 90% of the auction investment.

It is worth noting that even if there are conversions or sales within 330 days after the TGE, participants still qualify for a refund and can purchase TABI on the secondary market to place in their wallets for a refund.

Based on the TABI refund mechanism, investors can adopt different earnings strategies according to their investment habits and the secondary price performance of TABI.

For long-term investors, holding until after the 330 days post-TGE allows seedTABI to convert 100% into TABI, with two scenarios based on the secondary market price:

• If the market price is higher than the auction price, they can choose to continue holding or sell for profit.
• If the market price is lower than the auction price, they can apply for a refund, incurring a 10% loss, but the earnings from holding seedTABI may have already covered the loss or even yielded a profit.

For short-term investors, if within 330 days post-TGE, the price of TABI rises to cover the losses from early conversion, they can choose to convert early. For example: if the public sale auction price is $0.4, and after 180 days post-TGE the price of TABI rises to $1, the user can choose to convert at a 50% ratio to sell for profit. After early conversion, the user still has a second opportunity for profit:

• If the price of TABI is below the average auction price after 330 days post-TGE, they can purchase TABI on the secondary market for a refund, profiting again.
• If they wish to profit quickly, they can sell the wallet containing the converted tokens to a third party, effectively selling the final gaming opportunity.

The Tabi Chain public sale weakens the price competition during the auction phase, allowing buyers who are uncertain about their psychological price and fear missing out to enter early without hesitation, waiting for the market to assign the most reasonable price. Additionally, it provides various earnings strategy options for nearly a year after the TGE, allowing for steady earnings from holding seedTABI or seeking more opportunities amid price fluctuations.