Pencils Protocol Overview
- DAPP purchase options: $0.8 (0% unlock on TGE), $1.2 (20% on TGE), $1.5 (40% on TGE);
- High valuation for sale: $80 million, $120 million and $150 million;
- Allocation size: from $100 to $200 thousand;
- TVL: $290 million;
- You need to pass KYC to participate in the sale;
- Registration period for the sale: September 4, 13:00 Moscow time - September 18, 13:00 Moscow time;
- Start sale: September 18, 13:00 Moscow time - September 22, 13:00 Moscow time;
Project information:
Pencils Protocol is a DeFi platform based on Scroll. The project has several products:
- Launch of DeFi projects;
- Farm points of various projects (EigenLayer, Stone, Kelp points, Scroll marks and also its own Pencil points);
- Vaults (still in development);
The project was previously called PenPad and was a launchpad platform (it underwent are branding in May 2024).
The protocol has ~247 thousand users and a TVL of ~$290 million.
The project had 2 rounds of funding:
- In Round 1 (May 2024), they raised 2.1 million from Animoca, OKX Ventures, Galxe, Gate, etc. at a valuation of $25 million.
- In Round 2 (September 2024), they closed the round at a valuation of $80 million (investment amount unknown) from Taisu Ventures, Bing Ventures, etc. If you calculate in proportions relative to the previous investment, you get ~$6.7 million.
Information about the sale:
Tokenomics:
Total supply - 100 million DAPP;
- Treasury: 10% — linear unlock within 18 months.
- Public sale: 20%.
- Early Supporters: 16% — 15% TGE, linear unlock within 12 months.
- Ecosystem: 20% — linear unlock within 18 months.
- Team (Core Contributors and Advisors): 12% — 3-month delay, linear unlock within 18 months.
- Airdrop: 3% (TBD).
- Marketing and Liquidity: 4% (TBD).
- Community: 15% — linear unlock within 18 months.
As a red flag, it should be noted that most categories either they will start unlocking on TGE, or the unlocking (team) will start in 3 months.
Also interesting is that there are no investors in this tokenomics, it is unknown in what category they were hidden, the admins are silent on this issue for now.
DAPP purchase options:
- FCFS;
- Minimum purchase: $100;
- Maximum purchase: $200,000;
- A total of $20,000,000 DAPP will be distributed (20% of the supply);
- Tokens for participation: ETH, USDT, USDC;
- The date of TGE and token distribution is still unknown;
- KYC is required;
- It is planned to collect up to $23.33 million from the sale;
- Registration period for sale: September 4, 13:00 Moscow time - September 18, 13:00 Moscow time;
- Sale start: September 18, 13:00 Moscow time - September 22, 13:00 Moscow time;
- Registration link - https://pencils-protocol.tokensoft.io/event/1593
Comparison with competitors:
If we take a higher competitor Renzo (FDV $344 M) and approximately equal Tranchess (FDV $44 M), then the chances of even breaking even are low, you shouldn't expect much success from a project with such small investments.
Conclusion:
The unlock system is not built in favor of the sale participants. The project wants to cash in on the public sale and collect $23 million from ordinary investors. There will be a lot of pressure on the glass after TGE and unlocks.
Participation in the Pencils token sale is questionable, since the growth potential with such an assessment and unlocks looks limited and not necessarily positive.
