Today, we are excited to celebrate a historic moment, the official arrival of $DAPP token airdrop day! We are thrilled to witness this key milestone in our community. This is just the beginning; the ecosystem led by Pencils is only starting to unfold. We will continue to innovate and grow, injecting endless vitality and opportunities into our community. In the future, as our products and ecosystem evolve rapidly, more exciting collaborations and events will follow, and we can’t wait to share them with you!

How to Claim the Airdrop?

The airdrop event page is now open! All eligible users can visit the page to check their airdrop eligibility. Claim to CEX is available now, while Claim to Wallet and Claim & Staking options will be available on September 27, 2024, at 9:00 AM UTC.

Claim via CEX >>> https://pencilsprotocol.io/airdrop

• Sign the authorization using your eligible wallet address.

• Submit your UID and deposit address from the participating cooperating exchange (CEX).

• Upon successful verification, airdrop tokens will be distributed to your exchange spot account before trading opens.

*Note: Some exchanges will close UID submissions before the TGE. Future airdrop claims can be processed through alternative methods after this phase.

Claim to Wallet >>> (Available from September 27 at 9:00 AM UTC)

• On-chain claiming opens before the TGE.

• Connect to the Scroll network and hit “Confirm Claim” on the airdrop page.

• $DAPP tokens will be deposited directly into your Scroll wallet, depending on the confirmation speed of the network.

Claim & Staking >>> (Available from September 27 at 9:00 AM UTC)

Users can complete both claiming and staking in one step, enjoying staking rewards of up to 50% while allowing for easy deposits and withdrawals.

How to Participate in $DAPP Farming?

Pencils Protocol will launch a 14-day $DAPP staking event starting September 27, 2024, where participants can earn up to 50% APR. By staking $DAPP, you can enjoy short-term high returns while gaining shares in the upcoming Auction project and additional airdrop rewards from more Scroll ecosystem projects.

Stake Now >>> (Available from September 27 at 9:00 AM UTC)

For early participants, “Unlocking Growth and Community Benefits with $DAPP Tokenomics” has already outlined the allocation rules. Participants in the Season 2: The Mystic Pen Warriors event will follow the Early Supporters Release Schedule, releasing 15% at TGE and the remainder over 12 months. Users can claim their tokens on the airdrop page.

Airdrop Allocation

In this airdrop plan, a total of 3,000,000 $DAPP tokens (3% of the total supply) will be allocated to Pencils’ early supporters and contributors, as follows:

• 2,000,000 $DAPP (2% of the total supply) will be allocated based on users’ Pencils holdings and will be released in one go at the time of the airdrop, without phased unlocking.

• 1,000,000 $DAPP (1% of the total supply) will be allocated to early active users, including:

• Users who received S1 cards

• Users who received S2 proofs

• Holders of Pencils S and P Badges

• Users who participated in the OKX Wallet joint event and received the Pencils Protocol Miner S3 NFT

• Users who successfully minted SOUL NFTs (including all participants in partner boosting events)

This portion will be unlocked in three phases: 50% released at TGE, 25% released 30 days after TGE, and the remaining 25% released 60 days after TGE.

Claim Period

The claim window will open before the TGE and close 30 days after the last claim period ends. Users must complete their $DAPP claims within this period; otherwise, it will be considered an automatic forfeiture, and the unclaimed $DAPP will be returned.

Earn & Staking

After claiming $DAPP, users can also participate directly in Earn & Staking activities on centralized exchanges, earning high APY rewards of 30%-150%. The event entry will be announced through Pencils and the official channels of each cooperating exchange, so please stay tuned for updates.

*Important NotesThe platform reserves the right to adjust activity rules, and all updates will be announced through official channels.

Step-By-Step Guide

• Visit 【Tokensoft】and click 'Connect Wallet'

• Complete the authorization in your wallet.

• Start verifying your account.

• Go to "Identity Verification," fill in the information, and click "Review." *Note - Please ensure you accurately fill in the details as they appear on your ID.

• After confirming the information is correct, click 'Next'.

• Go to the verification page and click 'Continue.'

• Choose your country and certification method.

• Follow the instructions on the page to take a photo or upload a photo of your ID card, then click 'Next.'

You can also choose 'Continue on phone' by scanning the QR code or pasting the link into your phone's browser to complete the submission.

• Upload photos of the front and back of your ID card, then click 'Next.'

• Complete facial recognition after uploading.

• The system will automatically verify your authentication information.

• Click 'Verify email' to verify your email.

• Check your authentication progress. Note: Please ensure that the information you submitted is correct, with photos that are sharp and display all necessary details. Your verification is typically completed within 5 minutes to 48 hours. Please do not submit multiple requests, as this will delay your review.

• Once your authentication is complete, you will gain eligibility to participate in the purchase. Please make sure to log into Tokensoft as soon as the sale begins. You can copy and share your referral link on the homepage to invite friends to participate in the $DAPP sale.

• If you have any questions or need assistance, feel free to contact us via the official Pencils Protocol Discord or Telegram.

To make the ecosystem more rewarding, Pencils Protocol is launching the Vaults Product, a new feature that allows users to maximize their earnings potential through asset leverage and participation in liquidity mining. This launch is set to be a major catalyst for the growth of the platform’s ecosystem, particularly with the introduction of the deflationary mechanism that involves sending 30% of vault revenue to a void address as $DAPP. This approach will enhance the long-term value of the $DAPP token and support the ecosystem’s sustainable development.

Currently, Pencils Protocol is the leading DeFi platform in the Scroll ecosystem, boasting the highest Total Value Locked (TVL). Despite a relatively bearish market, the platform maintains a locked value of around $300 million and has experienced significant growth, with over 247,000 active users.

The imminent launch of the Vaults Product is one of the most exciting developments for the platform. Vaults will serve as a crucial revenue stream for both the platform and its users. Notably, 30% of the revenue generated from Vaults will be sent to a void address as $DAPP, creating a deflationary effect and enhancing the protocol’s long-term value. The remaining 70% of the revenue will be allocated to the ecosystem and community development fund, providing incentives for growth and supporting the sustainable development of the ecosystem.

How Does the Vaults Product Works?

Vaults is essentially a liquidity mining yield pool featuring leveraged mining functionality. On one hand, it connects to the Staking pool, allowing users to borrow and lend assets. On the other hand, Vaults 1.0 will integrate with various liquidity pools in the Scroll ecosystem’s DEXs, enabling users to participate in liquidity mining as LPs and earn amplified rewards through leverage.

Here are the key details:

Early participants not only receive staking and LP rewards but also benefit from high multiplier bonuses in points and token incentives, driving user engagement and increasing capital efficiency on the staking side. The process is straightforward, with a low barrier to entry, attracting a wide range of farming participants.

Moreover, Vaults serve as a liquidity hub. By participating, users inject substantial liquidity into DEXs, an essential function in the current market landscape. With its integration into the LRT sector, including BTC and ETH ecosystems, the narrative surrounding Vaults continues to strengthen.

Looking ahead, Vaults will evolve into a comprehensive asset management platform, integrating top-quality assets and offering on-chain delta-neutral strategies, synthetic yields, and exotic options to broaden revenue streams.

Historically, each market cycle sees the rise of an innovative aggregate yield product that meets users’ demand for steady returns. During bear markets, users seek stable income, and aggregate yield products that offer consistent, reliable returns are highly favored. In bull markets, these products become investor favorites due to their diverse features and above-average returns. Yearn Finance, for instance, reached a valuation of $3–5 billion during its peak, while Alpaca Finance had a market cap of about $1 billion. Vaults fill a gap in the current cycle, providing a much-needed liquidity hub and aligning with the LRT sector narrative, which could significantly boost the valuation of both Vaults and Pencils Protocol.

From the Vaults Product alone, we can begin to estimate Pencils Protocol’s future valuation. As more strategy-based passive income features, LaunchPad, and Shop products roll out, the platform’s $80 million pre-money valuation is clearly undervalued.

Comparison to Other DeFi Protocols:

Pencils Protocol’s Vaults stand out from other DeFi protocols due to their innovative approach to leveraged lending and their focus on user-friendliness. Here’s a comparison:

Deflationary Mechanism: A Growth Engine for $DAPP Token Value

One of the most exciting features of our Vaults Product is the allocation of 30% of vault revenue to be sent to a void address as $DAPP. This deflationary mechanism will contribute to the long-term appreciation of the $DAPP token. Additionally, the remaining 70% of the revenue will flow into the ecosystem and community development fund, which will provide incentives for different stages of growth, supporting the ecosystem’s sustainable development and future user engagement.

How it Works:

• Revenue Generation: The Vaults generate revenue, 30% of which is allocated to be sent to a void address as $DAPP, effectively removing these tokens from circulation.

• Token Reduction: By sending $DAPP tokens to a void address, the circulating supply is permanently reduced.

• Value Appreciation: The reduction in the circulating supply creates deflationary pressure, potentially increasing the value of $DAPP tokens over time.

Limited Token Circulation:

• Initial Lock-Up: The majority of $DAPP tokens will be locked up following the token sale, ensuring limited token availability in the early stages.

• Balanced Emission: The deflationary mechanism of sending tokens to a void address helps counterbalance any potential increase in supply from future token unlocks, maintaining a healthy balance between token distribution and reduction.

$DAPP tokens serve a vital role within the Pencils Protocol ecosystem, offering both practical utility and significant earning potential. Users can stake $DAPP to earn governance tokens ($pDAPP) at a 1:1 ratio. $pDAPP holders can stake to receive rewards or provide liquidity on DEXs. Within the Vaults Product, $DAPP stakers enjoy additional benefits, including bonus points, enhanced leverage rewards, exclusive access to advanced features, and a wider range of strategy products.

With the launch of Vaults, the demand for $DAPP is expected to gain traction as users look to optimize their returns. The strategic integration of $DAPP within the Pencils Protocol ecosystem not only incentivizes participation but also strengthens the overall value proposition of the platform, driving sustained growth and engagement.

In conclusion, Vaults will create a positive value cycle for the platform: increased transaction volume generates revenue, with 30% of this revenue being sent to a void address as $DAPP, reducing token circulation and enhancing its value. The rising demand for $DAPP within the Vaults and its growing utility will further accelerate value growth. This deflationary mechanism not only initiates this value loop but also sustains it, serving as the driving force behind the platform’s continuous growth.

A Journey of Growth and Innovation

Since its inception, Pencils Protocol has played a crucial role in pushing the Scroll ecosystem to new heights. With over $300 million in Total Value Locked (TVL) and more than 240,000 active users, the platform has become a dominant force in the DeFi sector, both within the Scroll and Ethereum ecosystems. The protocol’s ability to offer competitive yields through its Farming product has particularly stood out, providing users with powerful, multi-layered yield mechanisms that have driven significant engagement and investment.

Rewarding the Community: The $DAPP Token Sale

As Pencils Protocol moves into the next phase of its journey, the focus remains on rewarding its loyal and active community members. The upcoming $DAPP token sale, set to launch on the Tokensoft platform on September 18, offers a prime opportunity for participants to acquire $DAPP tokens at exclusive rates.

This sale is more than just an opportunity to purchase tokens; it’s a way for the community to actively participate in the continued growth and success of Pencils Protocol. By engaging in various campaigns on the Tokensoft platform or checking eligibility for the loyalty program, participants can influence their final token allocation, ensuring that the most dedicated members of the community are rewarded.

Comprehensive Token Allocation and Vesting

The $DAPP token sale will allocate 20% of the total $DAPP supply, equivalent to 20,000,000 $DAPP tokens. To ensure long-term growth and community engagement, the $DAPP token allocation is carefully structured:

The $DAPP token sale represents a significant milestone for Pencils Protocol and its community. With a well-structured tokenomics plan and a commitment to rewarding active participants, Pencils Protocol is not only fostering growth within the Scroll ecosystem but also empowering its community members to share in the platform’s success.

As we countdown to September 18, 2024, stay tuned for more updates and prepare to seize this exciting opportunity to be a part of Pencils Protocol’s journey.

To date, Pencils Protocol has surpassed $300 million in TVL and attracted over 250,000 active users. We are deeply grateful for the trust and support of our community, whose unwavering commitment has fueled Pencils’ rapid growth and success in just a few short months.

We are excited to announce the first major airdrop of $DAPP, our native token, as a way to reward early supporters and involve users in the next phase of Pencils Protocol’s growth. This marks the beginning of an exciting journey!

$DAPP is central to the Pencils Protocol ecosystem, offering staking rewards, high-leverage privileges, and project allocation opportunities. It can also be used as collateral for trading NFTs and real-world assets, and will be integrated into DeFi products for liquidity and lending. Users will enjoy fee discounts on Bridge and DEX services, with regular $DAPP buybacks and burns ensuring transparency.

Airdrop Allocation

The rules for $DAPP distribution have been detailed previously. In particular, participants in Season 2: The Mystic Pen Warriors will follow the release plan for the 16% allocated to early supporters, which is separate from the airdrop allocation. This means that 15% will be released at TGE, and the remainder will be unlocked linearly over 12 months. These tokens will be available for collection on the Airdrop page (Coming Soon).

Early Active Users include

• Users with S1 certificate

• Users with S2 certificate

• Users with Pencils S and P Badge

• Users who participate in the OKX Wallet Syndication and receive an Pencils Protocol Miner S3 NFT

• Users who successfully minted SOUL NFT (including participants of Boosting activities of all partners)

Tip: Keep an eye on the official announcement for details on the airdrop enquiry page and snapshot times.

Airdrop Accelerated Unlocking Program

The tokens allocated to Early Active Users will be unlocked in three stages:

1. 50% release at TGE.

2. 25% release 30 days after TGE.

3. 25% release 60 days after TGE.

Eligible users can accelerate token unlocking in the following ways:

• Tokensoft Verification Incentive: Complete KYC with Tokensoft to unlock an additional 25%, receiving 75% at TGE.

Accelerate Now >>

• Token Sale Participation Reward: Participate in the Token Sale subscription (unlimited amount) to unlock an extra 50%, receiving 100% at TGE.

Learn more about Token Sale >>>>

Collection Methods

Exchange Collection Process

• Airdrop Eligibility and Claim: The airdrop activity page will open before TGE. Eligible users can visit the page at launch, use their eligible address for signature authorization, and submit their UID and network address of the centralized exchange (CEX). After successful verification, the airdrop tokens will be issued to the spot accounts of partner exchanges before trading begins. Users should monitor their exchange account balance, and Pencils will provide a detailed guide for the event.

• Subsequent Airdrops: For future airdrops, users can return to the airdrop activity page and click “Claim” in the appropriate section. Tokens will be automatically released to the spot account of the initially submitted partner exchange. The exact release timing will depend on the exchange’s internal schedule.

On-chain Claim Process

The on-chain claim process will open 24 hours after TGE. Once users click “Confirm Claim” on the airdrop page, $DAPP will be released directly to their on-chain wallet. The exact arrival time depends on the confirmation speed of the blockchain.

Collection Period

The collection window opens before TGE and closes 30 days after the end of the last collection period. Users must complete their $DAPP collection within this timeframe, or the tokens will be forfeited and recycled.

Earn & Staking

After receiving $DAPP, users can join Earn & Staking activities on partner exchanges for high APY incentives (coming soon). Additionally, they can participate in $DAPP staking on the Pencils platform (opening soon) to earn high Pencils points and gain shares in auction project launches. More Scroll ecosystem airdrop incentives are also on the way. The earlier you participate, the greater your reward.

*Note：

• Please make sure that your registration information with Tokensoft and partner exchanges is accurate, and also ensure the consistency of your address, so as not to affect the airdrop collection.

• The platform reserves the right to adjust the rules of the campaign, and all updates will be announced via official channels.

Among these, the Farming product of the Protocol is a stand-out feature. Users can deposit LRT assets on the platform for the opportunity to earn competitive yields Currently, the TVL in Farming products has exceeded $300 million, with over 247,000 active users. These figures firmly establish Pencils Protocol as a dominant force in the DeFi sector within the Scroll and Ethereum ecosystems.

We are delighted to announce that Pencils Protocol is moving into the next phase of our journey! To show our appreciation for our loyal and active community members, we will be launching our token sale on the Tokensoft platform on September 18, 2024, at 10:00 (UTC). This is a prime opportunity for you to acquire $DAPP tokens at an exclusive rate.

Tokensoft helps projects with token sale and grant program management, and more to achieve their long-term goals. They have assisted approximately 100 projects in running large-scale token sales and raising over $1 billion. Supported projects include Avalanche, The Graph, Arbitrum, Tezos, Connext Network, Moonbeam, Acala, and Synthetix.

About $DAPP

$DAPP Token Sale Overview

• Platform: TokenSoft

• Chain: Ethereum Mainnet

• Ticker：$DAPP

• $DAPP Price: $0.8 / $1.2 / $1.5

• Purchase limits: min $500, max $200,000

• Purchase rules: first come first serve to the first 5,000 participants

• Accepting payments: ETH, USDT, USDC

• Token receiving address: same as your payment EVM address

• Total $DAPP Supply: 100,000,000 $DAPP

• $DAPP Allocation: 20,000,000 $DAPP

Key Dates

• Registration Period: September 4, 10:00 — September 18, 10:00 UTC

• Sale Period: September 18, 10:00 — September 22, 10:00 UTC

• Distribution Period: To be announced

Allocation Options

In the upcoming $DAPP Token Sale, we are offering 20,000,000 $DAPP tokens. Participants will have the flexibility to choose from various options, each tailored with different valuations and release schedules to suit their preferences

Preparations

• Complete KYC Verification: Before participating in the token sale, make sure to complete KYC verification. Users who do not pass KYC will not be able to participate in the public sale. Complete KYC verification here>>>.

Tokensoft Registration & Verification Tutorial

• Ensure Sufficient Funds in Payment Wallet: Before the sale begins, ensure that your payment account has sufficient funds to cover the subscription and gas fees. Due to potential gas fee increases on Ethereum Mainnet and Scroll during peak traffic, it is recommended to prepare adequate funds in advance to avoid missing out on the subscription opportunity.

• Enter the Sale Room Early: Considering the high competition in this sale, a randomized queue will be used. Please ensure you join the queue before 10:00 UTC on September 18. Anyone joining after this time will be placed at the end of the queue.

With the strong support of our community, we are grateful for your interest in the $DAPP token sale and eagerly anticipate your participation. Please stay informed by following our official social media channels for the latest updates. Remember to engage only with verified channels to protect yourself from any malicious activities during the sale. Thank you for your continued support, and we wish you all the best in the sale!

L2 season is in full swing and PenPad is here to lead the way as teams start building on Scroll.

PenPad is an innovative launchpad focused on fullying leveraging the unique attributes of Scroll. Dedicated to fair-launch projects, PenPad offers builders and new communities cutting-edge technology and support, including:

• “Proof-of-human” logins

• Scalability through Scroll’s zkEVM

• Privacy and compliance tools for real-world app integration

PenPad isn’t just the best place to build a community-focused project; it’s the best place to build adoption-ready dApps with scalability and regulatory compliance in mind. Scroll is the paper, but PenPad is the pen you’ll use to create something that can change the world.

By building on Scroll, PenPad will offer founders a whole toolkit of Zk solutions for their dApps.

Here are the unique tools you can leverage through PenPad

ZkPrivacy

Through PenPad, founders can use privacy to create apps and dApps that are ready for real-world business use.

Why do dApps need on-chain privacy before they’re ready for the real world? Because businesses and institutions can’t move on-chain without confidential transfers that will protect IP, consumer data, and sensitive information. Without access to these capabilities, many businesses would be at a disadvantage, and some would not even be legally allowed to operate.

Compliance through Cryptography

Beyond privacy, PenPad will offer compliance tools so that Web3 projects can integrate with real-world applications and services.

For example, PenPad incorporates “deposit managers” and “screeners,” which are designed to find and stop illegal fund transfers. Not only will projects have the ability to protect user data in compliance with consumer protection laws, but they’ll also be able to abide by AML regulations or other laws.

PenPad will allow projects to keep asset storage and execution separate through Teller and Handler contracts to make reporting more simple. In other words, PenPad offers the security and compliance that Web3 projects need to begin rewriting how finance is done globally.

Proof-of-Humanity Systems

Besides transaction privacy, PenPad lets users take control of their on-chain identity. PenPad will provide a robust zk-login to applications that will allow them to preserve user privacy while fulfilling KYC and AML laws. This system will work together with existing authentication systems used by social media platforms and email, even with device biometrics, to ensure a genuine person is behind the account and protect platforms from spam by bots.

As on-chain (and online) identities become increasingly important, privacy also becomes more important. On PenPad, you can build projects that will give users control of their identity, advanced protection against cyber attacks, and a way to comply with consumer protection laws requiring personal data protection.

Initial Progressive Ownership & Fair to Play

Technology is just one facet of a successful initiative; the other critical component is a robust community. PenPad revolutionizes the launchpad scene with our innovative Initial Progressive Ownership model, moving beyond traditional fair launches. We introduce a PenPal points system that ensures active contributors are recognized and rewarded, fostering a sense of ownership and commitment. Our platform empowers users to earn token allocations through the accumulation of PenPad points, adding a layer of engagement and reward for active community members. This not only enhances the gaming experience but also reinforces the project’s integrity to its early supporters, securing their engagement over a more extended period.

Account Abstraction

PenPad empowers developers to harness account abstractions in their dApps. By enabling user accounts to function as smart contracts, developers can infuse sophisticated logic and automation into their applications. This capability allows for more dynamic user interactions, MPC security features, and streamlined user experiences. Account abstraction can also be used in conjunction with other zk functions to increase both privacy and compliance on-chain.

Scaling Ethereum

As zkEVM, Scroll offers builders the throughput they need to build powerful DeFi applications that can handle RWAs. Building on scroll through PenPad means that dApps will be plugged into the largest Web3 ecosystem, with access to liquidity and partnerships that other ecosystems can’t match.

Building the Future Requires Futuristic Solutions

In summary, PenPad is more than just a launchpad; it’s a platform that empowers builders to create adoption-ready dApps with scalability and regulatory compliance in mind. By leveraging PenPad and Scroll’s technology, builders can unlock new possibilities and create projects that can change the world.

PenPad leverages Scroll’s built-in zero-knowledge technology to empower developers to build privacy into the dApps. It allows them to use zkLogins, proof-of-humanity systems, and verifiable randomness on-chain, laying the foundation for a decentralized web and world. Fair launch tools mean that projects can quickly attract and build the communities they need to be successful.

This next market cycle looks to be different from previous ones. Not only are macroeconomic trends different, but Web3 technology and communities seem poised to move into the real world at last. PenPad is here to accelerate that trend, using zero-knowledge cryptography to take crypto to the next level.

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