Progressive Supply Release

One of the biggest problems with traditional token launches is the ability for whales or bots to acquire a massive portion, or even all, of the token supply right at the start. This “supply bundling” leads to unfair distribution, centralization, and often sets the stage for a quick pump-and-dump.

Deepr tackles this head-on with its Progressive Supply Release mechanism, built around a system of tranches.

How it Works: The Tranche System

Instead of making the entire token supply available at once, Deepr divides the supply release into 14 distinct stages, or tranches. Each tranche has a specific amount of tokens allocated to it and a target price point.

• Tranche 0: The initial launch tranche.
• Tranches 1-13: Subsequent tranches that unlock progressively.

This tiered approach ensures that tokens are introduced into the market gradually and at different valuation levels.

Initial Distribution (Tranche 0 & Liquidity)

The launch starts with Tranche 0:

1. 22% of the total token supply is made available for purchase in Tranche 0 at the initialPricePerToken.
2. Once Tranche 0 is fully sold, the ETH raised is automatically paired with another 22% of the total token supply to create the initial liquidity pool (LP) on a decentralized exchange (like Uniswap V2).

This initial structure immediately prevents anyone from buying the entire supply, as a significant portion is reserved for liquidity from the outset.

Unlocking Subsequent Tranches (1-13)

The remaining 56% of the total supply is split into two equal parts:

• 28% for Tranches 1-13: These tokens are gradually released through the tranche system as price milestones are reached.
• 28% for Liquidity Matching: This portion is automatically paired with the ETH raised from tranche sales to continuously increase the liquidity pool depth.

The tranche system works as follows:

• Each tranche i (where i is 1 to 13) has an associated priceMultiples[i] value defined in the contract.
• A tranche becomes available for purchase only when the token’s market price (as determined by the DEX pool) reaches or exceeds initialPricePerToken * priceMultiples[i].
• Buyers can then purchase tokens from the available tranche at the current market price, provided it meets the tranche’s minimum price requirement.
• When tokens are purchased from these tranches, the contract automatically handles fee distribution and adds the remaining ETH and tokens to the liquidity pool, further bolstering it (see Smart Liquidity Scaling).

This design ensures that as tranches are sold, the liquidity pool grows proportionally, maintaining a healthy balance between circulating supply and liquidity depth.

Benefits of Progressive Supply

• Prevents Whale Bundling: It’s impossible for any single entity to buy the entire supply at launch.
• Fairer Distribution: Forces token distribution across various price points as the project matures.
• Gradual Market Introduction: Avoids the shock of the entire supply hitting the market simultaneously.
• Builds Confidence: A structured release can signal a long-term vision compared to instant-liquidity models often associated with rugs.