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Fair Launch Buy-Back Option

Overview​

This guide explains the optional Buy-Back feature available when creating a Fair Launch on Pinksale. This function allows a set percentage of the raised funds to be used for automatically buying back and burning project tokens after launch, potentially supporting the token price. Reading this will help you:

  • Understand what the Fair Launch Buy-Back function is and its purpose.
  • Know how to enable and configure it during the Fair Launch creation process.
  • Learn the details of the required parameters: Buyback Percentage, Amount Per Buyback, Minimum Buyback Delay, and Maximum Buyback Delay.
  • Understand when and how buy-backs can be initiated after the fair launch is finalized.

What is the Buy-Back Option?​

The Fair Launch Buy-Back function is an optional feature you can enable when setting up your Pinksale Fair Launch. If enabled, a specified percentage of the funds raised (e.g., BNB, ETH) will be allocated to a buy-back mechanism. This mechanism periodically uses the allocated funds to buy your project's tokens from the market (on the DEX where liquidity was added) and immediately burns them (sends them to a dead address), effectively reducing the total supply.

Setting Up the Buy-Back Function​

You configure the Buy-Back option during Step 2 (Input Fair Launch Information) of the Fair Launch creation process.

Fair Launch Creation - Buyback Option Toggle

If you enable the Buy-Back toggle, you will need to set the following parameters:

  • Buyback Percentage (%): Enter the percentage of the total raised funds you want to allocate specifically to the buy-back function.
    • Important Constraint: The sum of the Buyback Percentage (%) and the Liquidity (%) (set earlier in Step 2) must be greater than or equal to 51%.
  • Amount Per Buyback: Set the amount of the raised currency (e.g., the default is 1 BNB, but you can adjust this) that will be used for each individual buy-back transaction.
  • Minimum Buyback Delay: Set the minimum time delay (e.g., the default is 1 hour) that must pass after a buy-back before the project owner can manually trigger the next one.
  • Maximum Buyback Delay: Set the maximum time delay (e.g., the default is 6 hours) that can pass after a buy-back. If the owner hasn't triggered a buy-back within this time, any user can trigger it.

Initiating Buy-Backs After Launch​

Once your Fair Launch pool is successfully created and finalized:

  • The Buy-Back information (including the allocated amount and trigger button) will be visible on the finalized pool page.

Pool Page - Buyback Information Display

  • The first buy-back can be initiated one hour after the Fair Launch pool has been finalized.
  • The project owner can trigger a buy-back manually by clicking the buy-back button any time after the "Minimum Buyback Delay" has passed since the last one.
  • Any user can trigger a buy-back by clicking the buy-back button if the "Maximum Buyback Delay" has passed since the last buy-back was performed.

Q&A (FAQs)​

  • Q1: Is using the Buy-Back feature mandatory?
    • A: No, it's an optional feature you choose to enable or disable during Fair Launch creation.
  • Q2: What is the purpose of the Buy-Back?
    • A: Buying back tokens and burning them reduces the circulating supply, which can potentially create positive price pressure or signal confidence from the project. It uses a portion of the funds that would otherwise go to the project owner or liquidity.
  • Q3: What does the constraint "Buyback % + Liquidity % >= 51%" mean?
    • A: Pinksale requires that at least 51% of the raised funds are committed to either the DEX liquidity pool or the Buy-Back function (or a combination of both). This ensures a significant portion benefits token holders through market liquidity or supply reduction.
  • Q4: Who pays the gas fees for triggering the buy-back?
    • A: The person clicking the buy-back button (either the project owner or a user after the maximum delay) pays the network gas fees for the transaction.

Troubleshooting​

  • Q: I enabled Buy-Back during creation, but I don't see the option on my pool page after finalizing.
    • A: Ensure the Fair Launch successfully finalized. Refresh the pool page. If it's still missing, there might have been an issue during pool creation or finalization. Double-check your settings or contact Pinksale support / a developer if needed.
  • Q: The Buy-Back button is visible, but clicking it gives an error.
    • A: Ensure enough time has passed since the last buy-back (check the Minimum/Maximum delay timers displayed on the pool page). Make sure you have enough native currency (like BNB, ETH) in your wallet to pay the gas fees for the transaction. There could also be temporary network congestion or issues with the DEX router preventing the swap.
  • Q: Does the buy-back happen automatically?
    • A: No, the buy-back transaction needs to be triggered manually by clicking the button, either by the owner (after the minimum delay) or by any user (after the maximum delay). The contract then executes the buy and burn automatically once triggered.