| Commitment to fairness
Last updated
Last updated
Fairness is a cornerstone principle in the operation of Liquidity Bootstrapping Pools (LBPs) at the Aurora Foundation. Our commitment to fairness is evident in the design and implementation of LBPs, ensuring that all participants, regardless of their financial background, have equitable access to token launches.
Key Element: Dynamic Weight Adjustment Mechanism One of the key elements of fairness in LBPs is the dynamic weight adjustment mechanism. This approach prevents the dominance of large-scale investors or 'whales' and reduces the influence of automated trading systems or 'bots'. By gradually adjusting the weight and price of the token, LBPs create a more level playing field, allowing smaller investors to participate without being overshadowed by larger entities. This methodical reduction in price over time also discourages speculative behavior and market manipulation, further contributing to a fairer launch environment.
Promoting Transparency and Equal Opportunity Transparency is another crucial aspect of fairness in LBPs. The Aurora Foundation ensures that all processes and parameters within LBPs are clearly communicated and accessible to potential investors. This transparency enables participants to make informed decisions based on a comprehensive understanding of the token and its market dynamics.