Allocation Logic

Our completely bespoke tier-allocation logic looks to solve this mismatch:
Scenario 1 — The Private Sale Is Not Oversubscribed
The simplest scenario is that the private sale is not oversubscribed. Let’s imagine the entire presale is $200,000, and within the allocated 24 hours of the presale, only $75,000 of the tokens are sold.
In this case, investors can invest up to their maximum allocation, in line with the below staking tiers Token distribution at Lithium, is dependent on tier.
In this case, no adjustment for your tokens is required. If you contribute $2000 for a launch, you will receive $2000 in project tokens.
In this case, no adjustment for your tokens is required. If you contribute $2000 for a launch, you will receive $2000 in project tokens.
Scenario 2 — The Private Sale is Oversubscribed
For particularly popular projects, the number of tokens $IONs holders want to purchase may be higher than the initial allocation of tokens.
We are choosing to deal with this problem by adjusting the number of tokens investors will receive, and then partially refunding the native token used to invest.
Simply put, this might mean that you invest 100 USDC in a project, let’s call it ACME, for 1000 $ACME tokens. The project is then 20% oversubscribed. You receive 20% fewer tokens (800 $ACME) but also get an immediate 20% of your investment (20 USDC) refunded.
The above is a simplified example, in order to give higher tiers access to greater token holders, let’s take a look at the algorithm.
General Logic
Below is the general logic Lithium employs to ensure a fair distribution amongst tiers.
  • Calculate the pool supply-demand difference and relation.
  • Calculate the pool tiers staking costs and their relation.
  • Calculate the supply-demand difference for each tier. Calculate the sum of each participating tier stake prices.
  • Calculate the relation between each participating tier stake price.
  • Decrease the top tier supply-demand gap proportionally to this tier share of the sum of participating tier stake prices.
  • Subtract new top-tier supply gap from their demand value.
  • Subtract the resulting top tier demand from the pool and distribute it between the top tier investors.
  • Remove the top tier investors from the pool. Go to 1.