# How it works?

The DeFive Launchpad is designed to be **modular, secure, and aligned** with the long-term vision of both new projects and the DeFive ecosystem. Here's how the process unfolds step by step:

#### 🟩 1. Project Onboarding

Before any launch begins, projects go through a lightweight but meaningful **screening process**:

* Teams submit tokenomics, roadmap, and launch details.
* DeFive reviews for sustainability, vesting fairness, and allocation structure.
* If the **team allocation exceeds 10%**, basic **KYC verification** is required to proceed.
* A portion of the project’s total token supply (e.g., 5–15%) is allocated for launchpad rounds.

This ensures DeFive only supports quality projects with clear intentions and aligned incentives.

***

#### 🟦 2. Structuring the Launch: Two-Round Format

Each token launch is divided into **two distinct rounds**, designed for fairness, transparency, and aligned participation.

### **🛡️** Genesis Round: Early Access

* Reserved for **top veFIVE holders only or partnered options**
* Limited supply of tokens offered at a **discounted price**.
* Users can participate using **USDC** (or occasionally stable-like assets).
* Allocation is based on veFIVE tier — the higher your tier, the more you can buy.
* This round is **closed and exclusive**, creating meaningful early exposure for committed users.

### **🛡️ Momentum** Round: The **Expansion**

* Open to **all**.
* Users can participate using **USDC, $S, or staked $S**, depending on the project.
* A portion of this round’s raise is **allocated to DeFive as protocol revenue**.
* All revenue is used to **buy back $FIVE and burn** it — contributing to the deflationary model of the ecosystem.

***

#### 🔓 3. Liquidity Locking

To protect users and ensure healthy post-launch markets:

* Projects are required to **allocate a portion (e.g., 10%) of Round 1 raised funds** into a **liquidity pool**.
* This LP is **locked for a minimum of 6 months** by DeFive.
* This mechanism adds rug-proofing, trust, and long-term stability for new tokens.

***

#### 🔥 4. Buyback, Burn & veFIVE Utility

The system doesn’t just raise funds — it **feeds the core of the DeFive economy**:

* Platform revenue from each launch goes back to community.
* A large portion of platform revenue is **burned**, permanently reducing supply and sustaining yields.
* Optionally, a portion may be directed to create **staking incentives** for the new token or community farming on DeFive.
* Participation is **always tied to veFIVE**, reinforcing the long-term staking system and giving real utility to locked $FIVE holders.

***

#### 🧩 5. Optional Project Extensions

After a successful launch, projects can:

* Launch single-staking pools on DeFive to build further traction.
* Continue co-marketing with the DeFive team and community.
* Receive support in onboarding to Sonic-native integrations (wallets, explorers, tools, etc.).

> DeFive Launchpad is more than a place to mint tokens.\
> It’s a **structured**, **value-aligned**, **ecosystem-first engine** — where new projects are launched with purpose, liquidity is protected, and every launch leaves the $FIVE economy stronger than before.


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