Token & Treasury Divestments

Discover how Fjord can support sustainable token divestment of token assets

Treasury Token Divestments

Fjord Foundry offers projects the flexibility to sell treasury tokens mid-cycle in exchange for stablecoins or other assets. This approach allows projects to diversify their holdings and secure immediate cash injections when needed, similar to a Series A or B funding round. Here's how it works and the benefits it offers:

What is Treasury Token Divestment?

Treasury token divestment involves selling tokens from a project's treasury to raise funds. This can be done at any point in the project's lifecycle, providing a mechanism to convert project tokens into stable assets like stablecoins.

Why Consider Treasury Token Divestment?

  1. Immediate Cash Injection:

    • Projects can raise funds quickly by selling treasury tokens, providing necessary capital for operations, development, or other immediate needs.

  2. Diversification:

    • By converting project tokens into stablecoins or other assets, projects can diversify their treasury holdings, reducing risk associated with token price volatility.

  3. Funding Flexibility:

    • Similar to traditional funding rounds, projects can use treasury token sales to secure significant capital. This can be particularly useful during periods of market uncertainty or when additional funds are needed to scale operations.

How Does It Work?

  1. Setting Up the Sale:

    • Projects can set up a sale of treasury tokens on Fjord Foundry's platform. This involves defining the number of tokens to be sold, the sale price, and any additional parameters such as vesting schedules.

  2. Sale Execution:

    • Once the sale is live, participants can purchase the treasury tokens. The platform supports various token standards and can handle complex sale configurations.

  3. Vesting Options:

    • To manage sell pressure and ensure market stability, projects can attach vesting schedules to the tokens sold. This means that tokens are released to buyers over a specified period, preventing large sell-offs immediately after the sale.

Benefits of Using Fjord Foundry for Treasury Token Divestment

  • Streamlined Process:

    • Fjord Foundry's platform simplifies the process of setting up and executing token sales, providing a user-friendly interface and robust support.

  • Flexibility and Control:

    • Projects have full control over the sale parameters, allowing them to tailor the divestment to their specific needs and goals.

    • They can be done as a fixed price sale and/or an LBP

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