FAQ
A comprehensive collection of our community's most interesting inquiries.
FAQ V3.1 - Nov 2021
GENERAL
What is BlackDragon?
BlackDragon is a blockchain native venture capital firm with dedicated in-house marketing, development, and research teams. BlackDragon was formed back in 2017, from humble beginnings it had a blog and private group on WhatsApp. Since then, BlackDragon has launched the BlackDragon community token ($BDT) and houses an active community on Discord, Telegram, and Twitter groups.
BDT will grant you access to our fundraising platform that will provide you exceptional user experience with no gas wars. Through the platform, we provide our users with a fair allocation model, which is based on the percentage of tokens staked.
What makes BlackDragon unique?
BlackDragon focuses mostly on seed and private rounds usually reserved for traditional venture capitalists and not retail investors. Our fundraising approach is fair with guaranteed allocations*. Within our Discord group, we have formed a community to collectively vet projects and support other members in all things crypto.
*Your pro-rata share must be greater than $250USD to reserve a secured allocation during the pro-rata phase.
KYC
Why KYC?
Know-Your-Customer is a usual and fundamental part of the customer onboarding process. It is a set of standards used within the investment and financial services industry to verify customers.
Who can access my data?
Data is collected and stored by 3rd party provider.
BlackDragon is strictly using user information to validate their profiles and set up proper access permissions on the platform.
Is my data secure?
Keeping your data safe and private is of utmost concern to us. No unauthorised persons can by any means access user data.
Fractal as our 3rd party service provider ensures the security of personal data by implementing the highest standards and best practices in terms of managing and monitoring collected data.
What to do if experiencing problems with KYC process?
What if I can’t or don’t want to conduct KYC?
Unfortunately, without proper KYC onboarding you will not be able to use BlackDragon services.
Can I KYC before locking my BDT on the platform?
Yes, you are welcome to wait for your KYC to be approved before locking your BlackDragon Tokens ($BDT) on the platform. You need to be KYC verified and your BDT locked to view and participate in deals on the platform.
I have finished KYC onboarding but BlackDragon platform still shows “pending” status on my profile?
Don’t worry, the KYC process usually takes some time to become verified.
If you still experience this issue 24 hours after your submission please send us an email (support@blackdragon.io) with a description of the particular issue if possible.
TOKEN
What’s the purpose of BlackDragon’s community token?
The BlackDragon Token ($BDT) is the backbone of our community-based fundraising platform and an integral part of our investing ecosystem. It's primarily used to ensure our community receives access to our fundraising platform that will provide you with an exceptional user experience with no gas wars. Through the platform, we provide our users with a fair pro-rata allocation model, which is based on the percentage of tokens staked.
Part of the fees collected from each deal will be used for discretionary buying back the BDT tokens from the market and storing them in the Treasury.
Where can I acquire BD tokens ($BDT)?
There are currently no plans to offer OTC BDT orders for larger purchases.
Once you've purchased $BDT you can lock it in the platform
Note: A 6-month unlocking period applies. Unlocking results in losing access to the Discord server. Unlocking doesn't affect claiming of previously vested investments. However, users should keep BDT tokens staked for continuous updates and access to new deals.
PROJECTS & DEALS
Is there a master list of all project deals that have been launched to date?
Check CLOSED DONATIONS in the BD Discord channel. Deals are never discussed publicly! You will only be able to see deals available at your access level.
Where can I talk about specific project deals?
Questions relating to deals and other sensitive information should be discussed in the specific project channel or if more general in nature then "chat" (or any other relevant private channel).
Deal sensitivity?
The deal availability is based on the sensitivity of a deal and not the quality of the project. Due to the confidentially of some deals, the allocation may be restricted to higher tiers to protect the integrity of the deal. Higher quality projects are not reserved exclusively for higher levels.
PLEDGING
What is a pledge?
A pledge is a future commitment to contribute to a deal. Pledges indicate the deal demand and help the BD team to plan and negotiate accordingly to total pledge value. You may pledge as much as you wish with a minimum pledge of $250USD. Be aware; you are expected to contribute your pledge funds if the deal goes live.
You will receive a Discord notification when new potential deals are announced. Head over to the Platform and click on the Pledges tab to see all relevant information. Input the amount you wish to pledge.
If the deal is opened you must contribute at minimum your pledged amount (or max allocation if the latter is lower). Pro-rata allocation depends on how many BDT you have locked within the platform.
For example, all who pledged account for 400,000 BDT and you have 1,000 BDT. The BlackDragon allocation for this deal = $300,000. This way your personal allocation under pro-rata will be the following: 1,000 / 400,000 * 300,000 = $750 USD
Can I cancel my pledge?
Before the deal is open if your opinion or circumstances change you can adjust your pledge amount in the Platform. If you wish to cancel, change the pledge amount to $0. The platform should indicate if the pledging (or in this case the cancellation) was successful. Otherwise, you are expected to contribute your pledged amount (or personal max allocation if lower).
What are the different raise models in the platform?
The platform utilises a variety of raise models. The core model is pledged pro-rata, rewarding BDT holders who actively pledge for deals. Each phase will have an allotted time with a timer countdown indicating which raise model will be next. Certain raise phases may be skipped on individual deals however they will follow the following order:
phase 1 - Pledgers Pro-Rata - Whitelisted members who pledged. They can contribute up to their personal max indicated in the platform.
phase 2- level 3 (10,000 BDT): 65% of the allocation left unlimited
phase 3- level 2 (5,000 BDT): 30% allocation left unlimited
phase 4- level 1 (1,000 BDT): 5% allocation left unlimited
phase 5- unlimited (for all, including Level 0)
ALLOCATION
Can you explain the pro-rata allocation system (pledgers pro-rata)?
Our pro-rata-based system guarantees the right to an allocation in each deal proportional to the amount of BD tokens you have locked versus the total pledgers locked supply.
For example, if the pledger's locked supply is 250,000 tokens, and the user is holding 1,000 BD tokens, he will have a pro-rata personal allocation of 1,000/500,000 = 0.4% of the total deal allocation.
If the deal allocation is $250,000, this would mean that the user's maximum personal contribution is $1000USD for that deal.
The platform will calculate your maximum personal cap for each deal will be based on the number of BD tokens held in a connected wallet, and will not be affected by locking your tokens in a particular deal.
Important to note that the Platform rewards members who pledge. The amount of BDT locked by pledgers is generally significantly less than the total locked BDT supply. Thus, you may use the total locked supply as a worse case scenario.
How much allocation can I receive for say 1000 xBDT?
1000 xBDT locked will typically offer a $300 - 1000 USD pro-rata allocation. Individual allocation sizes depend on the total BD community allocation and the number of participants who wish to take part in the deal.
You will receive your personal allocation on the platform if the deal is open to your access level and you pledged (subject to $250 minimum requirements). Popular deals may fill quickly and your pro-rata may drop as more members relock to contribute. Regardless you will receive allocation according to your pro-rata amount.
How to increase my pro-rata allocation for projects?
To increase your pro-rata allocation you must lock additional BDT in the platform using the bridge and lock function. The platform will automatically increase your pro-rata allocation allowing for you to immediately contribute to deals on the platform.
To simply put things, the more BDT (xBDT) tokens you lock, the higher your pro-rata amount.
Why is my pro-rata getting lower?
Your pro-rata allocation will likely decrease over time as more members transition to the platform and new members sign up/relock their tokens. If you're unhappy with your pro-rata allocation, you can buy more BDT or wait for FCFS rounds to contribute further.
How the platform calculates your pro-rata allocation
The platform allocates the total deal size based on the number of active members with a xBDT lockup greater than 5 months. Members with less than the required lockup will be required to relock their tokens if they wish to invest. Your pro-rata allocation may decrease as members who were previously excluded relock their tokens.
For example, A new deal is opened with an allocation of 100k USDT.
Currently, the lock situation is: Jack 10k BDT expiring in 4 months Alice 10k BDT expiring in 4months-15days Bob 10k BDT expiring in 5months-15days Eve 10k BDT expiring in 6 months They all pledged, but only Bob and Eve have guaranteed allocation (because their lock time is >5months) In this situation Bob and Eve would have 50% of total allocation each.
Let's say Bob used his allocation and contributed his max - 50k. After Bob's contribution, Alice relocks her tokens. Now, Alice, Bob and Eve have 33.33% each, but Bob already contributed 50k, and 50k is left. Alice contributes her max -> 33.33% = 33.33k, so 16.66k is left.
Eve has 33.33% pro-rata, but she cannot contribute 33.33k because deals has only 16.66k left, so she contributes 16.66k. The deal is filled.
Impact on lower tiers pro-rata allocation as the BDT community grows
When there are many BDT holders, it may not make economical sense for lower tiers to hold. These individuals could choose to sell and the BDT price will find its equilibrium.
In addition, those members with low BDT holdings might have smaller pro-rata allocation, but deals rarely fill just based on pro-rata, as many holders won't participate in the specific deal, so there will be allocation left, which everyone will be able to take once the countdown timer goes to 0 and deal goes to "unlimited". The unlimited model is FCFS - first come first serve.
Also, the contribution process heavily favours those who pledge. Whitelist pro-rata will have the allocation apportioned by your BDT holdings compared to the total amount of BDT held by pledgers. Thus, the formula rewards all those that pledge by granting them more guaranteed allocation than they would normally get.
So is there any value in joining level 0 or 1?
LOCKUP
Am I required to stake/lock my BDT?
To contribute to the deals offered on the BlackDragon Platform, users are required to stake their tokens. Once unstaking process is started, user needs to wait six months in order to be able to claim BDT tokens from staking smart contract. In this time user will not be able to contribute to new deals, unless he stakes his BDT tokens again.
Do I need to lock all my BDT to participate in private sales? Can I lock less?
You may lock as many of your BDT as you like (minimum 250 BDT to have basic access). The pro-rata will be calculated on your locked BDT only.
Are there deal limits for my BDT?
There are no limits on the number of projects you can access once you lock BDT. You are free to contribute to all deals available to your access level with the same BDT.
What happens if I unstake my BDT tokens?
BDT token staking has a 6-month unlocking period. During that period and after you can still view the deals you invested in and claim vesting. However unlocking results in losing access to the Discord server and so, users should keep BDT tokens staked for continuous updates and access to new deals.
CONTRIBUTIONS
When investing in projects do we invest with ETH, USDT, or BDT?
BDT is not used for investing, it is used for granting access to deals. Contributions are made in USDT on the platform.
How do I acquire xUSDT
The BD platform expects USDT (from Arbiotrum One) with the following contract address: 0xFd086bC7CD5C481DCC9C85ebE478A1C0b69FCbb9
Other USDT variants are not compatible with the platform.
All methods will require payment of transaction fees in the native token on the origin chain (ETH, BSB, MATIC etc). Ensure your account has the funds to cover these fees.
There are various methods to acquire USDT on the xDai network, see below.
OPTION A – Official Ethereum choices (average cost ~$30USD)
If your USDT is ERC20 then you can use the official bridge or swapper to receive USDT.
Select USDT and type in your desired amount.
Click Approve + Transfer OR swap respectively.
Follow the Metamask prompts to complete the transaction.
Notes:
Given this transaction occurs on the ETH network, you are subject to potentially high gas prices and thus should consider utilising alternative blockchains for stablecoins during congested ETH network conditions.
OPTION B – Withdraw to Arbitrum chain (average cost ~$1)
If you are using a centralized exchange such as Binance, MEXC, Kucoin etc.. They all support the Arbitrum chain for both their ETH token and USDT token.
1- Make sure you have an Arbitrum One wallet setup see Platform Manual
2- Copy your wallet address from the Metamask application
3- Visit your exchange and navigate to the "Withdraw" page
4- Makes sure to select the Arbitrum One option when withdrawing.
5- Paste the address you copied from Metamask and withdraw.
OPTION C – SWAP to USDT on the Arbitrum chain (average cost ~$0.1USD)
If you have another stablecoin on Arbitrum consider C-1 first. Curve.finance generally has better rates on stablecoin swaps than the C-II's alternatives.
Select the stablecoin asset (crvUSD or USDC) you wish to swap
Select USDT as the output asset to receive.
Input the desired quantity to exchange
Observe the routing, slippage, fees and price impact
Click swap and follow the Metamask prompts to complete the transaction.
For non-stablecoins coins on Arbitrum consider the C-2 alternative below.
Select the asset you wish to swap from the dropdown menu and search.
Select USDT as the output asset to receive. Double check it has the correct token address: 0xFd086bC7CD5C481DCC9C85ebE478A1C0b69FCbb9
Input the desired quantity to sell OR quantity to buy.
Observe the routing, slippage, fees and price impact
Click swap and follow the Metamask prompts to complete the transaction.
Can I contribute to this deal?
If you can see the deal in Discord under PLEDGES, you are eligible to pledge on the platform. When it moves to Open (and you pledged) you can send xUSDT on the platform. If you didn't pledge, you need to wait for general pro-rata or FCFS. Check the platform and act quickly when the FCFS phase is available.
Within the platform, it will be clear if you can contribute or not. The dApp will calculate the personal max you're allowed to currently send. If the contribute button is greyed out then you are currently not eligible to contribute. If you hover over the contribute button, the tooltip should indicate why it's unavailable.
Why can't I contribute to an open deal on the platform after pledging?
If your Personal Max is less than $100 then you are below the minimum threshold. You will need to wait till FCFS to contribute. Keep an eye on the countdown and act fast!
If you desire to contribute to a deal during the pro-rata phase you may buy more BDT and lock the tokens within the platform. Your pro-rata allocation should be instantly updated, which might allow you to get into the deal.
Important Resources:
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