# Why is fair launch so important nowadays? By [DreamRobber](https://paragraph.com/@dreamrobber) · 2022-04-14 --- In February 2022, the crypto industry was in a bear market, and the Ethereum gas fee once approached 30gwei with many tokens falling below the respective public offering prices. Even if they had the best stories and resources, they could not resist the valuation falling caused by the global macroeconomic environment. For example, RSS3, a project invested by top institutions such as Coinbase, launched on exchanges such as Bybit and MEXC on February 14, achieved a total market value of only $400 million. And any project without such strong backers that went live at the tail of the bull market months ago can easily be valued at more than $200 million. When people’s emotions subside, projects with high quality survive and wait for the next upward cycle, and deceptive projects disappear. The financial freedom characteristics of the blockchain provide great convenience for early participants to exit. At present, most investment institutions are getting used to quick arbitrage by investing too widely (buying tokens at lower price from seed/private round and sell the tokens at higher price in the secondary market) without providing any effective help for the development of the project itself. At the early stages of a crypto project, the investment from institutions often attracts a legion of profit-seekers while contributing little growth in the real users the project needs to scale. When the craze dissipates, the price of the project token drops, those profit-seekers are gone, and the project probably is the only one left to deal with the chaos. The market should start to realize this, especially when the bear market begins to clean the bubble of valuation. In the financial history, the financing difficulties from traditional industries led to the emergence of Venture Capital funds, a special intermediary agency, to endorse the projects and help building public trust. But now, the blockchain itself perfectly solves the financing problem, and the most crypto VCs are not doing a good job in leading the industry forward. As of now, no disruptive application has appeared in the blockchain. It is indicated that with the awakening of public awareness, the endorsements of many institutions will be weakened or even disappear in the future. The importance of community highlights the powerlessness of some exchanges. Some existing exchanges still only focus on the secondary market instead of community aspect of the project, taking advantages of incremental user to help the project improve its economic effects. As the crypto concept comes to be widely received and users on chain grow exponentially, the token price decision power will return to the hands of native communities. Some exchanges will fall into a predicament when they begin to compete for stock off-chain crypto users and start price wars with lower listing fee. Users will also study to buy tokens directly through the chain without intermediaries. January 3, 2009 was when Bitcoin was born. Satoshi Nakamoto created a currency distribution system that was completely fair at the time. Everyone works at the same time under the same threshold, and whoever does the work quickly and correctly will be rewarded in Bitcoin. This economic incentive system, or so-called fair launch, which relies entirely on code and without any human interference, has set the tone for the decentralization of cryptocurrency over the years. The native crypto project should attract the correct users firstly through fair launch and maintain them across the community building process. The essence of fair launch is that there are no early fundraising rounds and no whitelist rush, corresponding to no centralized market selling pressure. Users can buy and sell completely freely. At the beginning of the project, a group of long-term builders will be gathered, and the community developed on this will be able to withstand the stress testing of the bear market period and last until the bull market. Fair launch occurs when the project issues tokens, which is achieved by providing liquidity contributions to obtain tokens. The vision of fair launch is to provide global blockchain users with services that are efficient, fast, affordable enough, available to everyone, and owned by everyone. That is, doing what Ethereum has not achieved yet. Usually, different tokenomics should be adopted in different scenarios. Quick release or long-term lock is not the best solution. The tokenomics is inseparable from the project’s market plan, product roadmap, and the selling pressure. A successful long-term project must have a tokenomics that suits itself, rather than copying others. However, most projects do not have the ability to do this at present. The free trading of tokens at the beginning can optimize the holder structure, which is conducive to the overall development of the project in the future. The story of the Constitution DAO brought fair launch back into the public eye. In fact, including Dogecoin and Shiba, both of them are typical representatives of fair launch. Although these tokens do not have much substantial performance in application, they have all experienced the stress test of bear market with the help of active trading crowd. It can be said that fair launch has a long-term impact on the vitality of communities. The type of community members who join at early stage of the project is very important. A vibrant community is also the key to helping the project to survive in the bear market. The representative of the project to build a high-quality community is Aavegotchi, which tops the community list in 2021, even surpassing Uniswap. Aavegotchi is community-oriented and focuses on the maintenance of the reputation system. Inactive participants will be easily eliminated. Encouraging users to participate in daily discussions will be of great help to real users screened and building a community. In terms of the performance in the secondary market, Aavegotchi’s token $GHST has also performed very strongly in the bear market, and the overall trend is still steady upward. The characteristics of community governance projects are that the market value will not be particularly large during the stable period, the trading market is very active, and the turnover rate is high. This naturally also keeps the project itself away from concentrated selling pressure, no longer triggers a death spiral panic, and condenses user confidence and promotes greater potential for growth. The forms of fair launch can be varied, so that we do not list all of them here. People interested in crypto shall study this theme by themselves. The content of this article is based on the background of the bear market, observes the current dramatic drop in the valuation of many projects, and thinks about the mistakes of crypto projects deviating from real development and turning to market value scams. In the end, I think fair launch is one of the parts that needs to be focused on. After all, basically all projects need to go through the early stage of fundraising. --- *Originally published on [DreamRobber](https://paragraph.com/@dreamrobber/why-is-fair-launch-so-important-nowadays)*