Osmosis as a Pre-launch Market

General
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Osmosis boasts the largest trading volume and recognition among IBC-related projects. In the IBC ecosystem, many projects, including blockchains currently under preparation, are gearing up for their mainnet launches. This proposal is an idea to maximize Osmosis’s position and AMM, as well as the projects launching in the IBC ecosystem.

Largest problem in early projects
Blockchain projects always face some issues depending on their phase, but for early-stage projects in particular, figuring out how to catch the eye of their first potential users is an extremely significant challenge. The larger a project becomes, the more resources it can access, but early-stage projects have limited resources and not many options available in the IBC ecosystem.

Tokenized Point
In recent projects, it is common during the testnet period to issue tokenized points to early users to overcome the initial barrier to service adoption. In some cases, non-tokenized points are issued, but in others, tokenized points are circulated, and there are ecosystems where a market is gradually developing. Tokenized Points can be expressed on Osmosis contracts without considering technical difficulties.

Osmosis as a Pre-launch Token Hub
Considering the above, as Osmosis provides the largest AMM on the IBC ecosystem, it has the potential to have a significant impact on the entire ecosystem as a Pre-launch Token Hub. Blockchains on the IBC ecosystem can potentially provide services to prospective users on Osmosis, the largest DEX chain, before launching their mainnets.

Pre-launch Token Yield
I am the co-founder of Mycel, a blockchain project using CosmosSDK with the concept of “Token transfer layer with Intent centric architecture”. Therefore, in this example, I will use the MYCEL token.

Hypothetically, let’s name Mycel’s Tokenized point “pMycel (Pre-launch MYCEL)”. Mycel plans to launch its testnet in 2024 Q3. Furthermore, let’s assume that when launching the testnet, the Tokenized Point called pMycel will also be launched.

Pre-launch Token Yield is a mechanism to grow the ecosystem using Tokenized points as incentives.

Pre-launch Token Yield
1/ Mycel issues Tokenized Points on Osmosis
2/ Grant pMYCEL tokens to those who provide liquidity to the pMYCEL-OSMO pair
3/ Through pMYCEL, Mycel can acquire potential users before launch
4/ Osmosis can involve projects from the pre-launch stage and provide more opportunities to the entire ecosystem

Pre-launch Token Yield
Pre-launch Token Yield1886×872 25 KB

Advanced Thesis

The example described the OSMO-p token pair, but by pre-launch stage projects cooperating with each other and providing incentives for p tokenA-p tokenB pairs, network effects can be amplified. Giving pre-launch stage projects a chance to be recognized by potential users is considered one of the parts for the IBC ecosystem to continue thriving.

If the Osmosis community accepts this idea, Mycel will be happy to participate as the first project in Osmosis’s Pre-launch Token Yield. Also, projects, researchers, and builders with similar ideas, please provide feedback.

2 Likes
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Is this not already possible by using either start.cooking, the tokenfactory or StreamSwap for example?

There you can already create you own asset and list it on Osmosis via a pool.

For a first glance this looks more like another way to use the assets created via one of the already available routes.

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With the state of some projects, I think the tokenized point system is already in effect :sweat_smile:

But seriously, a tokenized points system would work. If the redemption rate is unknown but the earning mechanisms are known, then the trading would be very speculative and potentially generate more buzz than purely notional points.
If the redemption rate is also known, then it is more like an actual issuance with a migration once the intended deployment location goes live.

As LC says, a token factory would be perfect for this. We would need some sort of redemption mechanism contract building out, of course. The only issue is the same issue with any points program - reliance on the team to offer a fair redemption rate.

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As you mentioned, it is not technically new. (I believe that being able to invent new concepts with existing technologies is beneficial for the entire ecosystem.)

This idea is one of the concepts that can generate new financial primitives on Osmosis. Rather than technical issues, the more important challenges are whether the number of participants will increase and whether the network effects will function properly.

The question is whether the community will accept this as one of the measures to increase Osmosis’ TVL and Tx.

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There might already be projects executing this that I’m just not aware of :joy:.

If there are projects that have already issued tokenized points, we could start initiatives by collaborating with those teams to conduct marketing utilizing the tokenized points. There’s a possibility that a new flywheel could emerge from that.

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I’m not sure if there are projects with tradeable points already.

I think what @JohnnyWyles means is that the tokenfactory in combination with a new-to-be-created smartcontract (or the likes) could work to achieve the desired situation.

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I was being facetious. There are several projects trading tokens without an actual use case, pending implementation, launch or staking to link the product to token.

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I had to Google “facetious” lol

On a serious mark; I assume you respond to the message of @yosui ?

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