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📊 Minimum and Maximum Raise

Maintaining healthy, transparent funding parameters is a cornerstone of successful token sales on DEXDock. By implementing minimum and maximum raise targets, projects can balance their financing needs while preventing excessive or insufficient fundraising. This structured approach not only benefits the development and long-term health of the project, but also protects participants from potential market turbulence. Below is an overview of the core features and benefits of setting a minimum and maximum raise, complete with practical examples of how it all works. ✨

Minimum Raise​

  1. Purpose

    • Funding Assurance: Ensures projects secure enough capital to advance their initial development milestones and operational expenses.
    • Investor Confidence: Participants know the sale won’t proceed unless it meets a basic threshold, indicating the project has a realistic financial basis to deliver on promised goals.

  2. Example

    • Scenario: A project might set a minimum raise of $500,000 to cover research, development, and initial marketing. If the total funds raised fall below this amount, the sale may be canceled or refunded to maintain credibility and transparency with backers.

Maximum Raise​

  1. Purpose

    • Controlled Funding: Caps excessive fundraising, which could lead to oversupply of tokens and potential price instability post-sale.
    • Market Protection: Helps maintain a balanced token ecosystem, preventing the flood of excess tokens that might undermine value and confidence.

  2. Example

    • Scenario: A project sets a maximum raise of $5,000,000 to maintain a lean token supply. Once the cap is reached, no further contributions are accepted, preserving a stable, sustainable token ecosystem.

Benefits​

  1. Project Security ⚖️

    • Guaranteeing a minimum raise means the project has enough resources to reach its initial milestones. It also fosters trust by showing a clear, well-defined use of funds.

  2. Market Stability 🌐

    • A maximum raise ceiling wards off excessive token inflation, which could erode the token value and spark market volatility. This balance keeps existing holders and new participants aligned with the project’s broader vision.

Example in Action​

Imagine a project sets a $500,000 minimum raise and a $5,000,000 maximum raise:

  • Minimum Raise: If the sale doesn’t reach $500,000, the sale is either extended or canceled, ensuring the project isn’t underfunded for core deliverables.
  • Maximum Raise: Once $5,000,000 is collected, the sale closes. Any contributions beyond this point are unavailable, protecting the market from a surplus of tokens.

By using this dual raise model, DEXDock helps projects stay focused on purposeful, sufficient funding without risking overshoot that could potentially harm token value and community relations.

In summary, setting both minimum and maximum raise thresholds is a proactive, community-centric strategy that merges financial security with market equilibrium. Projects gain the clarity and confidence needed to pursue their roadmaps, while participants enjoy a stable, well-managed environment where their investments remain protected.