Transition Conditions
This section is mostly AI fluff and requires substantial revision to reflect actual protocol design decisions.
Transition conditions are on-chain rules that determine when a Raredrop automatically converts to permissionless trading. These conditions ensure that collections achieve sufficient distribution and market readiness before opening to unrestricted participation.
Overview
| Condition Type | Purpose | Example |
|---|---|---|
| Distribution threshold | Ensures wide participation | ≥ 70% of issued tokens sold |
| Time threshold | Guarantees open participation period | ≥ 72 hours elapsed |
| Issuer reserve deployment | Confirms liquidity readiness | Reserve LP added post-offer |
Core conditions
Distribution threshold
Requires a minimum percentage of issued tokens to be sold before transition. This ensures broad participation and prevents collections from opening to trading with insufficient liquidity depth.
Typical range: 70–90% of issued supply
Purpose: Guarantees that early distribution is wide enough to support healthy secondary markets.
Time threshold
Requires a minimum duration to elapse before transition, regardless of distribution progress. This ensures equal opportunity for all participants to discover and participate in the Raredrop.
Typical range: 72 hours – 7 days
Purpose: Prevents instant transitions that favor sophisticated actors with faster information access.
Issuer reserve deployment
Requires the issuer to deploy their reserved liquidity (typically 10% of assets and 10% of funds raised) into the pool before transition. This ensures the issuer is committed to market-making from day one.
Purpose: Guarantees sufficient liquidity depth for composability with DeFi protocols post-launch.
Programmability
All transition conditions are encoded in smart contracts and execute automatically when met. No governance votes, no admin keys, no discretionary decisions. The conditions are transparent and verifiable on-chain, creating predictable and fair launch dynamics.
Collections can customize which conditions to use and their specific parameters based on asset class, regulatory requirements, or community preferences.