ICTO SNS-DAO Whitepaper

ICTO: Internet Computer Token Operations

Revolutionizing Token Operations on the Internet Computer Blockchain

Executive Summary

Decentralized finance (DeFi) within the ICP ecosystem has been gradually evolving since the genesis of the ICP protocol. The ecosystem has progressed from establishing a token standard to the emergence of several decentralized exchanges (DEXs), the development of a DAO-like launchpad infrastructure by the foundation, and the introduction of the first liquid staking protocol built on the ICP ecosystem.

The ecosystem is now thriving, with numerous DeFi protocols under development and increasing DeFi activities daily. This growth highlights the critical need for a flexible, decentralized launchpad that operates independently of the foundation.

ICTO is the first-of-its-kind decentralized and flexible launchpad platform built on the ICP protocol. Our primary goal is to provide a comprehensive platform for token management and fundraising for projects built within the ICP ecosystem. We aim to simplify the investment process for the retail community, enabling them to support innovative projects within the ecosystem. In essence, ICTO serves as the bridge between innovators and the retail community, connecting groundbreaking projects with supporters willing to fund them.

The ICTO platform will be powered by the ICTO token, which will be distributed through an SNS swap. Token holders will have governance rights, allowing them to participate in decision-making for the ICTO launchpad.

Document Version 1.0 - 2024

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1. Introduction

1.1 Background

Problem

With most tokens depreciating over time and numerous hacks and scams in the Web3 space, market participants have valid reasons to be concerned. Every token launch project faces a long list of critical questions regarding token creation and distribution.

Key Questions and Challenges When Launching a Token:

  • What role does the token play within the community?

  • Why should users care about the token?

  • What incentives do different stakeholders have to participate in the token’s ecosystem?

  • How can protective (technological) measures be implemented to foster long-term, mutually beneficial behavior?

  • Where, when, and how should the token be launched?

  • What products, tools, and services can be used to achieve distribution goals?

  • Are market technologies safe, user-friendly, robust, and affordable, or should they be customized/built in-house?

  • How can we ensure that the token retains value and fulfills its purpose in the long run?

  • How can successful governance and secure, continuously evolving protocol development be facilitated?

  • How can treasury security and transparency be guaranteed?

Simply put, how can the token lifecycle be managed with peace of mind?

All these questions and concerns can be distilled into a critical challenge for every token project:

How do you design a system where stakeholder incentives are aligned, and what technology should be used to achieve this in a secure, user-friendly, and robust manner?

To address this challenge, ICTO has developed a comprehensive suite of products designed to fully align token incentives throughout its lifecycle.

SNS Launchpad Limitations

Less Complexities and Technicalities

The SNS launchpad is designed for individuals well-versed in the complexities and technicalities of programming. It is not tailored for the average person who simply wants to launch a token and build a community around it. Our platform, on the other hand, is user-friendly and accessible to everyone, even those with zero technical knowledge. With our platform, users can easily create tokens, automate their distribution, and lock liquidity pools (LP).

Less Gatekeeping

Passing a proposal through our SNS DAO will not be required for anyone to use our tools to create tokens or raise funds through our platform. However, in exceptional cases where a significant percentage of our community opposes a project using our platform, we will submit the matter for a community vote.

Better Tools to Protect Investors

We believe in a trustless approach to protecting investors. However, investors are still encouraged to conduct their own research (DYOR) before investing in any project. Our platform will provide trustless, codified tools designed to offer better protection for investors than what the SNS launchpad currently provides.

Marketing and Visibility

Our platform will provide substantial marketing support for projects by leveraging our community and reputation to increase visibility and attract investors.

Liquidity Provision

Providing liquidity pools (LP) on decentralized exchanges (DEXs) after fundraising is crucial for the average crypto investor, yet many SNS projects are falling short in this regard. To address this, our platform will automate LP provisioning for projects, making it standard practice for projects to specify the percentage of funds allocated for LP provision.

The ICTO launchpad is not designed to replace the SNS launchpad but to complement it. Its purpose is to play a vital role in bringing innovative projects to life within the ICP ecosystem by offering the most flexible and secure launchpad capable of accommodating all types of projects built on the ICP protocol.

1.2. Vision

Our vision is to create an all-inclusive, transparent, and decentralized launchpad that aligns with the ethos of decentralization and Web3. The platform will enable anyone to create tokens, distribute them, implement vesting and locking mechanisms, raise funds, and lock liquidity pools (LP).

Activities within the ICTO launchpad will be managed by BlockID, a revolutionary human verification and reputation scoring protocol developed by us for the collective benefit of the ICP ecosystem. BlockID will add an additional layer of security and help eliminate bots on the platform.

We aim to simplify how projects within the ICP ecosystem efficiently manage their token needs and raise funds for development from the retail community. To achieve this, we are fostering a long-term relationship with the ICP retail community, enabling them to participate in innovative projects launching through our platform without worrying about entry barriers or technical complexities.

1.3. Mission

Our mission is to become the launchpad of choice for both the ICP retail community and developers. We believe that DeFi within the ICP ecosystem is just beginning to flourish, and we aim to be a major launchpad for innovative Web3 projects shaping the future.

ICTO will empower investors to support projects on our platform, provided they conduct their own due diligence on any selected project.

1.4. The ICTO Solution

ICTO is a secure, user-friendly, and robust token infrastructure for creating and distributing tokens throughout their lifecycle.

The ICTO product suite includes:

  • Token creation and distribution

  • Crypto-native payroll

  • Airdrops

  • Token ownership

  • Token locking, LP locking

  • Launchpad

We are committed to creating the most user-friendly, flexible, and highly secure decentralized launchpad. Our platform addresses the limitations of existing SNS launchpads, such as gatekeeping, excessive complexity, and technical barriers.

1.5. Market Opportunity

Ethereum is the first smart contract-enabled blockchain, allowing the creation of projects directly on its protocol. These projects are powered by tokens that project teams typically distribute through various means. The most popular method of distributing tokens and raising funds for projects has been initial coin offerings (ICOs). According to Statista, more than $6.88 billion USD was raised through ICOs between 2017 and 2019. Since then, crypto-related projects have continued to raise funds from the retail market through various other methods.

The paradigm shift in ICP ecosystem DeFi began with the creation of the SNS DAO launchpad. This platform has enabled various projects to raise funds and transfer governance of their dApps to a community of token stakers, who actively participate in decision-making about the project's future. The SNS launchpad has brought the visions of numerous projects to life—ranging from SocialFi initiatives and DeFi protocols to AI applications and real-world assets (RWAs)—all governed through a fully on-chain DAO framework integrated into the SNS launchpad.

While the SNS launchpad has significantly contributed to the growth of DeFi within the ICP ecosystem—raising over 10 million ICP within two years of its inception—it also comes with limitations. These constraints, such as reduced flexibility, can be addressed by ICTO. ICTO offers developers and creators an alternative approach to fundraising and governance, paving the way for more adaptable and innovative project management.

1.6. Why ICTO Should Evolve into a DAO

Gateless but Protected Ecosystem

  • Open Access: Anyone can launch projects without pre-approval.

  • Community-Driven Security: Post-launch governance through token holder voting.

  • Dynamic Risk Management: Ability to intervene in problematic projects.

  • Treasury Protection: Power to recover funds in cases of project misconduct.

Revolutionary Governance Model

  • Proactive vs. Reactive: Traditional gatekeeping replaced by community oversight.

  • Real-time Intervention: Quick response to project developments.

  • Transparent Decision Making: All governance actions recorded on-chain.

  • Stake-based Responsibility: Token holders incentivized to maintain ecosystem quality.

Enhanced Investor Protection

  • Community Vetting: Continuous project assessment by stakeholders.

  • Emergency Measures: Built-in mechanisms for fund recovery.

  • Risk Mitigation: Distributed responsibility for project evaluation.

  • Transparent Metrics: Real-time project performance tracking.

Project Accountability

  • Ongoing Compliance: Projects held accountable throughout their lifecycle.

  • Development Milestones: Community verification of project progress.

  • Reputation System: Track record visible on-chain.

  • Incentivized Honesty: Projects motivated to maintain transparency.

Technical Infrastructure Benefits

  • Automated Compliance: Smart contract enforcement of community decisions.

  • Scalable Governance: Efficient voting and execution mechanisms.

  • Flexible Intervention: Multiple levels of community action possible.

  • Secure Fund Management: Multi-signature treasury control.

Market Advantages

  • Competitive Edge: Unique combination of openness and security.

  • Reduced Barriers: Lower initial costs for quality projects.

  • Enhanced Trust: Community-backed project validation.

  • Network Effects: Growing ecosystem of validated projects.

Community Empowerment

  • Active Participation: Direct involvement in platform governance.

  • Shared Responsibility: Distributed project evaluation.

  • Economic Incentives: Rewards for active governance participation.

  • Collective Intelligence: Leveraging community expertise.

Risk Management Innovation

  • Dynamic Response: Quick adaptation to market conditions.

  • Graduated Intervention: Multiple levels of community action.

  • Preventive Measures: Early warning systems.

  • Recovery Mechanisms: Protected investor interests.

Implementation Advantages

The current codebase already supports key DAO features. This infrastructure can be extended to include:

  • Governance voting mechanisms

  • Treasury management

  • Project milestone tracking

  • Community reward systems

2. ICTO Protocol Architecture

2.1. Protocol Architecture

  • Built on Internet Computer Protocol, 100% on-chain

  • Modular canister design

  • Integrated with IC ecosystem services

  • Scalable and upgradeable architecture

This platform provides a complete solution for token operations on the Internet Computer blockchain, following best practices and standards while ensuring security and automation.

2.2. Core Protocol Components

2.2.1. Smart Contract Management (Backend Canister)

The backend canister serves as the central hub for managing smart contracts and token operations:

Key features:

  • Contract deployment and management

  • Integration with ICRC ledger

  • Cycle management for canister operations

  • User-contract mapping through indexing

2.2.2. Token Distribution System (TokenClaim)

TokenClaim is an advanced token distribution and vesting management system built on Internet Computer, providing programmable distribution mechanisms with comprehensive security features and transparent on-chain verification.

Distribution Models

1. Whitelist Distribution

  • Pre-approved recipient management

  • Customizable allocation per recipient

  • Flexible vesting parameters

  • Automated distribution processing

2. Public Distribution (FCFS)

  • Maximum participant cap enforcement

  • Equal distribution mechanism

  • First-come-first-served allocation

  • Anti-bot protection

Vesting Engine

1. Time-based Parameters

  • Configurable cliff periods

  • Linear/Custom vesting schedules

  • Initial unlock percentages

  • Dynamic unlock intervals

2. Distribution Logic

  • Real-time calculation of claimable amounts

  • Automated vesting schedule execution

  • Multi-phase distribution support

  • Time-locked release mechanisms

Security Framework

1. Access Control

  • Identity Verification

  • BlockID integration

  • Score-based eligibility

  • Sybil attack prevention

  • Bot resistance mechanisms

2. Administrative Controls

  • Owner authorization

  • Emergency pause functionality

  • Contract state management

  • Parameter modification restrictions

2.2.3. Liquidity Management (TokenLock)

TokenLock provides secure liquidity locking capabilities for ICPSwap

Features:

  • Time-based lock mechanisms

  • Position transfer verification

  • Automated unlock scheduling

  • Duration extension options

  • Emergency recovery functions

  • Real-time monitoring

2.2.4. Token Deployment System

Easily create and launch custom tokens on the Internet Computer using ICTO's deployment feature. Configure token details, leverage the official ICRC standard, and rapidly integrate your token into the expanding IC ecosystem.

Features:

  • ICRC token standards support

  • SNS-compatible token deployment

  • Automated canister management

  • Configurable token parameters

2.2.5. Launchpad System

Comprehensive launchpad functionality for token sales

Features:

  • Configurable sale parameters

  • Token allocations are publicly disclosed

  • Accept any ICRC token other than ICP, such as ckUSDC, ckBTC, and ckETH

  • Whitelist management

  • KYC/Bot prevent integration through BlockID

  • Affiliate program support

2.3. Successful Launchpad Flow

When a launchpad reaches its soft cap, the following automated processes are triggered:

1. Token Deployment (Initial Trigger)

  • Immediately triggered upon reaching soft cap

  • Tokens are minted via Token Deployer contract

  • Implements all predefined token parameters

  • Serves as the critical first step that enables subsequent processes

2. Distribution Setup

  • TokenClaim contract created for participant distributions

  • Vesting schedules and lock periods configured

  • Participants prepared to claim tokens

3. Liquidity Management

  • Liquidity pool established on ICPSwap

  • TokenLock contract deployed to manage liquidity

  • Lock duration and conditions set

4. Team Token Vesting

  • Separate TokenClaim contract created for team tokens

  • Vesting schedule implemented for team's raised ICP/ckBTC/ckETH … allocation

  • Controlled token release mechanism activated

5. Fee Structure Implementation

Normally, 3% success fee automatically processed:

  • 1% deposited to SNS treasury

  • 2% allocated for token buyback and burn from open market

2.4. Smart Contract Architecture

|-- canisters/
    |-- backend/
        |-- main.mo        # Main backend canister
        |-- IC.mo          # IC management interface
        |-- Types.mo       # Common backend types
    |-- token_deployer/
        |-- main.mo        # Token deployment canister
        |-- ICRCLedger.mo  # ICRC token interface
        |-- Types.mo       # Token types
    |-- claim_contract/
        |-- main.mo        # Token claim/vesting canister
        |-- types/
            |-- Common.mo  # Claim contract types
    |-- lock_deployer/
        |-- main.mo        # Liquidity lock canister
        |-- contracts/
            |-- TokenLock.mo # Lock contract implementation
        |-- Types.mo       # Lock types
    |-- launchpad/
        |-- main.mo        # Main launchpad canister
        |-- Contract.mo    # Launchpad contract implementation
        |-- modules/
            |-- Process.mo      # Auto process module
            |-- Refund.mo       # Refund module
            |-- Affiliate.mo    # Affiliate system
            |-- Whitelist.mo    # Whitelist management
        |-- services/
            |-- TokenService.mo      # Token deployment service
            |-- ClaimService.mo      # Claim contract service
            |-- LockService.mo       # Lock service
            |-- AddLiquidityService.mo # LP service
        |-- types/
            |-- Common.mo       # Common types
            |-- Timeline.mo     # Timeline types
            |-- ICPSwapLP.mo    # LP types
            |-- Distribution.mo # Distribution types
        |-- utils/
            |-- Time.mo        # Time utilities
            |-- Validation.mo  # Input validation
            |-- Security.mo    # Security checks
            |-- BlockID.mo     # BlockID integration
    |-- indexing/
        |-- main.mo        # Indexing canister
        |-- Types.mo       # Indexing types

3. Token Economics and SNS

3.1. ICTO Tokens

Total Supply: 1 000 000 000 ICTO tokens. SNS is designed to generate voting rewards for participating neurons, starting at 3% of the total supply annually and gradually decreasing to 1.5% over a period of 3 years.

SNS Swap

25%

250 000 000

Team & Advisors

14%

140 000 000

Marketing (Pre-SNS)

1%

10 000 000

Treasury

60%

600 000 000

3.2. Token Allocation

SNS Swap

25% of the total ICTO supply will be allocated for swap. Participants in this SNS Swap, including the Neuron Fund, will be granted their tokens as a diversified portfolio. This portfolio consists of 5 equal-value neurons, each with staggered dissolve delays of 0, 3, 6, 9, and 12 months, respectively. This structured approach ensures a balanced distribution and encourages long-term commitment among participants.

Team & Advisors

The ICTO team and advisors will receive their tokens in a basket of 4 neurons. These neurons will have a dissolve delay of 6 months. They will have vesting periods of 0, 12, 24, and 36 months after the SNS Swap. The team and advisors will not receive any ICTO tokens at the SNS Swap. The neurons of the team and advisors' ICTO tokens will have a vesting period starting at the SNS Swap. The team and advisors will not be allocated any ICTO tokens until 6 months after the SNS Swap.

Marketing (Pre-SNS)

1% of the total token supply is allocated to compensate partners who have executed marketing initiatives for ICTO during the pre-SNS phase. These partnerships have been critical in building community awareness, expanding our ecosystem, and establishing ICTO's presence in the Internet Computer network.

To ensure equitable and transparent distribution, this allocation will be divided equally into basket of 3 neurons, each with a dissolve delay of 0, 1, and 2 months, respectively. This approach balances immediate rewards for completed efforts with a structured release schedule to maintain alignment with the project's long-term goals.

Treasury

Subsequent to the decentralization swap, the SNS will maintain control over the residual 60% of ICTO tokens, designating them as the treasury reserve - the ICTO DAO Treasury. This allocation will serve as an incentivize for various contributors including developers, designers, marketing specialists, and others instrumental in the evolution of ICTO and its broader ecosystem. Furthermore, these tokens may be utilized to stimulate user engagement, bolster marketing campaigns, and finance additional initiatives that foster the growth and expansion of ICTO. The distribution of these tokens will be meticulously governed by decentralized proposals, ensuring a democratic and transparent allocation process.

3.3. SNS Params

Total ICTO tokens to be swap

250 000 000 (25%)

Minimum number of swap participants

10

Neuron fund participation

Yes

Minimum direct participation

40 000 ICP

Maximum direct participation

165 000 ICP

Minimum participation per entity

1 ICP

Maximum participation per entity

20 000 ICP

Neuron basket

5 equal-value neurons, each with staggered dissolve delays of 0, 3, 6, 9, and 12 months

3.4. Post-SNS Swap Treasury Management

Following the SNS swap completion, the SNS-DAO treasury will maintain 590 million ICTO tokens alongside the accumulated ICP from the swap. All treasury operations will be governed through DAO-approved proposals to ensure transparency and community control.

Key allocations (subject to DAO approval):

  • 10% of ICTO & ICP for DEX liquidity to enable community trading.

We know the importance of LP in the lifecycle of a token and it's a serious matter to us. After a successful SNS, we will initiate a proposal to use 10% out of the ICP raised in the SNS with token from the treasury to provide LP for the easy trading of the token in a DEX. This LP will be under the control of the DAO and we also encourage community members to provide LP and this will help in making our token one of the most liquid tokens in the ICP ecosystem.

  • 3% of ICTO for community rewards (airdrop) targeting:

    • XCANIC holders

    • NFT holders (CANIC)

    • BlockID early verifiers

    • Testnet participants

    • AMA & campaign participants

    Please bear in mind that the occurrence of these airdrops is contingent upon four specific conditions.

The distribution of tokens for community rewards is transparently carried out on ICTO using the Token Claim feature: https://icto.app/token-claim

Treasury Utilization:

  • ICP/ICTO holdings for operational costs (cycles, development, marketing)

  • Portion of ICP for NNS neuron staking to:

    • Participate in IC ecosystem governance

    • Generate voting rewards as treasury income

    • Establish ICTO beacon neuron

All treasury actions require DAO proposal approval to ensure transparent governance.

3.5. Revenue Pathway

A launchpad is one of the proven Web3 business models that can generate revenue sustainably while delivering long-term value to its token holders. This has been demonstrated within the ICP ecosystem during the two years of the SNS launchpad's existence.

Through the SNS launchpad, more than 10 million ICP has been raised by innovative projects in the ICP ecosystem within just two years. Considering the limitless real-world applications that can be built on the ICP protocol—thanks to its reverse gas model and fully on-chain capabilities—we envision a future where many mainstream Web3 applications will be built on ICP. These forward-thinking projects will raise funds through the SNS launchpad or other flexible launchpads within the ecosystem.

We anticipate a future in which a significant number of ICP ecosystem projects will use our platform to launch their tokens and raise funds, positioning us as key contributors to the birth and growth of new projects in the ICP ecosystem.

Each successfully funded project will contribute 3% of the ICP raised to the ICTO DAO. Of this 3%, 2% will be automatically used to buy ICTO tokens on a decentralized exchange (DEX) and burn them, while the remaining 1% will stay in the DAO treasury.

As mentioned earlier, more than 10 million ICP has been raised through the SNS launchpad in two years. Imagine if 30% of that amount had been raised through our platform: the DAO would have used 2% of the 3 million ICP raised to buy back ICTO tokens and burn them. This equates to 60,000 ICP being used to support the token's value through buybacks and burns. This mechanism will foster long-term value for the token, with all processes automated and governed by the DAO.

4. Roadmap

Q1 2025: Foundation for SNS Integration

Community Treasury Development

  • Multi-signature vault implementation

  • Treasury allocation mechanisms

  • Investment portfolio management

  • Risk assessment framework

SNS Integration Features

  • Pre-SNS Support

    • Project readiness assessment

    • Community building tools

    • Governance practice platform

    • Token distribution simulation

  • Token Migration

    • Automated swap mechanisms

    • Value preservation tools

    • Holder rights protection

    • Historical data migration

  • Post-SNS Integration

    • Governance integration

    • Treasury management

    • Community transition support

    • Cross-DAO collaboration

Expected Outcomes

  • Security & Trust

    • Enhanced platform security

    • Reduced risk of attacks

    • Improved user confidence

    • Better project protection

  • SNS Readiness

    • Streamlined SNS transition

    • Protected token holder rights

    • Efficient governance transfer

    • Seamless community migration

  • Platform Growth

    • Increased project quality

    • Stronger community trust

    • Better project success rate

    • Enhanced platform stability

Q2 2025: Advanced Security Infrastructure

Multi-Layer Security Implementation

  • Advanced encryption for sensitive operations

  • Real-time threat detection system

  • Automated security audit tools

Transaction Safety Enhancement

  • Multi-signature requirement for large transactions

  • Time-locked execution mechanisms

  • Transaction verification nodes

  • Fraud detection algorithms

Q3 2025: Risk Management & Compliance

Risk Management System

  • Project risk scoring mechanism

  • Automated compliance checking

  • Real-time monitoring dashboard

  • Emergency response protocols

Advanced Protection Mechanisms

  • Insurance pool implementation

  • Stake-based security deposits

  • Automated vetting system

  • Dispute resolution framework

Q4 2025: Advanced Features & Sustainability

Innovation Layer

  • AI-powered project assessment

  • Predictive analytics for project success

  • Cross-chain bridge implementation

  • Advanced tokenomics tools

Sustainability Implementation

  • Long-term treasury management

  • Sustainable governance models

  • Community incentive structures

  • Platform evolution mechanisms

This roadmap serves as a comprehensive guide for the ICTO's strategic initiatives over the next year, emphasizing the importance of security and community engagement in the successful integration of SNS.

5. Disclaimers

This white paper provides a detailed overview of the ICTO platform, its community, operational model, and value proposition. The information contained herein is subject to change and should not be interpreted as a commitment, promise, or guarantee by ICTO, its management, or any affiliated individuals or organizations. The implementation of any features, services, or aspects described in this document is contingent upon approval by the ICTO DAO members.

This document does not constitute an offer or solicitation to sell shares, securities, or tokens and should not be construed as financial advice or a recommendation. It is intended solely for informational purposes and should not be the sole basis for any investment or contractual decisions.

Investments in tokens or digital assets are inherently risky and may involve significant pricing volatility, liquidity challenges, and the risk of total loss of principal. Prospective investors are strongly encouraged to conduct thorough independent due diligence and consult professional financial, legal, and tax advisors before making any investment decisions.

While this white paper has been prepared using sources believed to be reliable and accurate, the information is provided “as is,” without any express or implied warranty. Market data, forecasts, and analyses reflect current conditions and are subject to change without notice. Charts, visual aids, and other graphical representations are included for illustrative purposes only and should not be relied upon as the sole basis for investment decisions.

This document may contain forward-looking statements and projections based on assumptions and expectations. These statements are subject to risks, uncertainties, and other factors that could cause actual results or events to differ materially from those anticipated. ICTO disclaims responsibility for any losses or damages arising directly or indirectly from reliance on this information, any errors or omissions, or actions taken based on this document.

This document is confidential and proprietary to ICTO. All rights reserved.

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