DBR liquidity bootstrapping gets underway on Jupiter's launchpad ahead of deBridge token launch

A liquidity bootstrapping program for deBridge’s upcoming DBR governance token is underway via Solana decentralized exchange aggregator Jupiter’s LFG launchpad ahead of a token generation event on Thursday.

Hosted by the deBridge Foundation, the DBR LFG launch claims to be unique compared to prior offerings. According to a statement shared with The Block, the launch offers a fixed price to all participants without a bonding curve.

A bonding curve is a standard pricing model determining how token prices increase as more tokens are purchased during a launch event.

Eligible whitelisted participants can deposit up to $5,000,000 in the USDC stablecoin collectively to bid on DBR’s initial price of $0.025 per token before the official launch, the team explained. This gives the project a $250 million fully diluted valuation. Each individual whitelisted address has a deposit cap of $25,000 in USDC.

The Solana-based token will have a total supply of 10 billion tokens. It is designed to decentralize governance power to the community as control is passed over to a DAO, deBridge told The Block earlier this year. The goal is to ensure that no single party can dominate or make decisions based on their own interests rather than those of the whole DAO.

The LFG vault will be open until 8 a.m. UTC on Oct. 16, the team said. It is available to participants who used the deBridge app on at least 10 separate days before the July 23, 2024 cutoff and those staking a minimum of 690 JUP tokens at the time of the snapshot.

The launch comes after Jupiter put forward three “OG” Solana projects to potentially become the next tokens to launch on its new LFG launchpad in February — of which deBridge was highlighted as one of the candidates. The Jupiter community subsequently approved deBridge to use the platform as the crowd sale venue for DBR via a Jupiter-based liquidity pool.

deBridge’s token generation event and next steps

deBridge’s token generation event is scheduled for 8 a.m. UTC on Oct. 17, with trading starting at $0.03 per DBR — a $300 million FDV. Tokens acquired through the LFG launch will be distributed with 50% available immediately at TGE, and the remaining 50% will be released six months later, the team confirmed.

deBridge token holders can stake their DBR tokens to participate in DAO governance votes on protocol parameters, including the election of active validators, setting minimum consensus thresholds and the deployment and upgradeability of smart contracts. The DAO will also manage the project’s treasury and ecosystem reserves, with responsibilities gradually increasing over time.

Once deBridge’s delegated staking and slashing module is activated, DBR tokens can also be staked to support deBridge validators. By staking DBR, validators' slashable collateral is increased, which serves as a form of insurance, protecting against potential issues such as validator downtime, censorship and collusion.

Overall, deBridge’s token distribution is set to allocate 20% of the supply to its community, with a 1.8 billion DBR circulating supply at launch. Of the remaining supply, 26% is allocated to ecosystem support, 20% to core contributors, 17% to strategic partners, 15% to the deBridge Foundation and 2% to validators.

What is deBridge?

deBridge differs from the popular bridging model in which users lock a token on one chain and receive an equivalent wrapped asset on another — one of the most common bridge vulnerabilities exploited in the industry.

Instead, deBridge is designed to enable liquidity transfer directly between chains, removing the need to lock assets, reducing complexity and improving transfer efficiency.

deBridge claims to have the largest bridge economy in web3, having generated $7.5 million in fees year-to-date, according to Token Terminal data .

Last week, deBridge unveiled Hooks for cross-chain data transfers and dapp triggers. For example, an application running on one blockchain can now receive deposits from another network in a single transaction.