A comprehensive collection of our community's most interesting inquiries.
FAQ V3.1 - Nov 2021
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 pro-rata allocation model, which is based on the percentage of tokens staked.
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 $250USD to reserve a secured allocation during the pro-rata phase.
Know-Your-Customer is a usual and fundamental part of the customer onboarding process. It is a set of standards used within the investment and financial services industry to verify customers.
Data is collected and stored by 3rd party provider.
BlackDragon is strictly using user information to validate their profiles and set up proper access permissions on the platform.
Keeping your data safe and private is of utmost concern to us. No unauthorised persons can by any means access user data.
Fractal as our 3rd party service provider ensures the security of personal data by implementing the highest standards and best practices in terms of managing and monitoring collected data.
Unfortunately, without proper KYC onboarding you will not be able to use BlackDragon services.
Yes, you are welcome to wait for your KYC to be approved before locking your BlackDragon Tokens ($BDT) on the platform. You need to be KYC verified and your xBDT locked to view and participate in deals on the platform.
Don’t worry, the KYC process usually takes some time to become verified.
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.
There are currently no plans to offer OTC BDT orders for larger purchases.
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.
Questions relating to deals and other sensitive information should be discussed in the specific project channel or if more general in nature then "chat-bdt-holders" (or any other relevant private channel).
The Discord "WELCOME" category should not mention deals or other critical information as this area is public for non-BDT holders. Failure to comply may result in a ban.
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.
Discord limits the number of channels allowed under a single header thus the number at the end indicates BlackDragon reach the cap and has started a new header such as “Closed Donations -2”.
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 xBDT 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
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).
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:
1) Pledgers Pro-Rata - Whitelisted members who pledged. They can contribute up to their personal max indicated in the platform.
2) Pro-Rata - All BDT holders that didn’t pledge get access according to their personal max allocation.
3) Pledgers Personal Cap - Whitelisted members can contribute up to the specified limit.
4) Personal Cap - All BDT holders are eligible to contribute up to the specified limit.
5) Unlimited - First Come First Serve (FCFS) model with no individual limits until the deal is filled or closed.
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.
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.
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.
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.
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.
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.
To view deals offered by the BlackDragon Platform, users are required to lock their tokens for a minimum of 6 months. To successfully contribute to deals, users need an active BDT lockup greater than 5 months (>150 days). After 5 to 6 months of contribution inactivity, the lockup period expires and all of your BDT is unlocked!
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 xBDT only.
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.
Each new deal you contribute too will extend your BDT lock expiry. Your BDT gets unlocked after you haven't used the platform for at least 5 months, given that the platform will recheck if you entered new deals on the monthly basis (in order to lower the number of lock transactions). However, for locking your BDT you get access to regular deal opportunities which should provide tremendous value.
BDT is not used for investing, it is used for granting access to deals. Contributions are made in xUSDT on the platform. You can use the swapper or bridge to acquire xUSDT.
The BD platform expects xUSDT (from Ethereum) with the following contract address: 0x4ECaBa5870353805a9F068101A40E0f32ed605C6
Other xUSDT variants are not compatible with the platform. You will be required to bridge back and follow one of the tested methods below.
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.
If your USDT is ERC20 then you can use the official bridge or swapper to receive xUSDT.
- 2.Select USDT and type in your desired amount.
- 3.Click Approve + Transfer OR swap respectively.
- 4.Follow the Metamask prompts to complete the transaction.
- 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.
- To increase your approved USDT limit, you may be required to first revoke approval and then set a new approval limit (two approval transactions). Unlimited approval coming soon to the platform.
- When bridging from ETH -> xDai, if after successfully approving USDT the 'transfer' button does not activate, refresh the page, type in the same amount you previously approved, click 'Approve' and it shouldn't trigger Metamask or prompt for gas. You should then be able to proceed with the transfer.
- When bridging from xDai -> ETH if your xUSDT transaction doesn't complete, navigate here and enter your transaction hash. Click on manual execute near the bottom (this will require an additional gas fee so wait till market conditions are favourable)
- If the swapper balance is below your desired swap quantity, use another method or wait for the balance to be refilled by a BD team member.
Should I use the swapper or bridge?
Both options are valid. The preference will depend on ether gwei pricing and USDT quantity. The swapper will cost an ERC20 transfer + 1% swap fee. The bridge will require an ETH contract approval and then transfer. Typically the swapper is cheaper especially during high ETH network conditions. For larger USDT transfers the flat gas fee may be cheaper than the 1% swap fee.
- 1.Ensure your stablecoin is USDT on one of the compatible chains (BSC, Polygon, Fantom, Arbitrum One or Avalanche).
- 4.Select your origin chain, USDT-USDT and xDai USDT for the destination.
- 5.Observe the fee impact and available liquidity of USDT on the xDAI chain.
- 6.Click 'change chain' and follow the Metamask prompts to complete the transaction.
Supported source chains include Ethereum, BSC, Polygon, Arbitruim, Fantom, Avalanche, Optimisim, OkExChain and Heco.
Hop.exchange allows for bridgable transactions from Ethereum, Polygon, Optimisim, Arbitrum.
- The steps to follow for B-2 and B-3 are very similar to xPollinate above. Any issues please reach out for assistance in our Discord.
If you have xDAI or xUSDC consider C-1 first. Curve.finance generally has better rates on stablecoin swaps than the C-II's alternatives.
- 1.Select the stablecoin asset (DAI or USDC) you wish to swap
- 2.Select USDT as the output asset to receive.
- 3.Input the desired quantity to exchange
- 4.Observe the routing, slippage, fees and price impact
- 5.Click swap and follow the Metamask prompts to complete the transaction.
For non-stablecoins coins on xDai consider the C-2 alternatives below.
In both cases,
- 1.Select the asset you wish to swap from the dropdown menu and search.
- 2.Select USDT as the output asset to receive. Double check it has the correct token address: 0x4ECaBa5870353805a9F068101A40E0f32ed605C6
- 3.Input the desired quantity to sell OR quantity to buy.
- 4.Observe the routing, slippage, fees and price impact
- 5.Click swap and follow the Metamask prompts to complete the transaction.
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.
If your Personal Max is less than $250 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.