From fair launch to automatic liquidity addition, NERC20 explores new ways of fair distribution

Author: Mia, ChainCatcher

With the explosive popularity of Pepe and Blad this year, Memecoins have once again been thrust into the spotlight, attracting the attention of numerous traders. The dream of getting rich overnight and the mindset of short-term speculation drive them to flock to the primary market. High returns come with high risks; while the primary market seems to fulfill the dreams of wealth, it is fraught with hidden dangers. Risks such as "Rug Pulls," exploitation of permissions, and logical loopholes that siphon off investors' funds are rampant in the primary market. At the same time, in order to gain more chips during Token issuance, traders often resort to extreme measures, and unethical trading behaviors such as "scripts" and "scientists" severely disrupt the issuance order of the primary market. Users are beginning to yearn for a fairer token distribution mechanism, and "how to achieve a fair launch" has become one of the severe challenges faced by Token issuers.

With the explosive popularity of BRC20 tokens at the beginning of this year, BRC20 tokens have been successfully deployed on the Bitcoin chain through Ordinals. Its minimalist token issuance method maximally ensures the fairness of token distribution, making fair sales on the Bitcoin chain a hot topic of discussion once again.

• The unique UTXO mechanism and low performance of Bitcoin prevent many speed-advantaged smart contract bots from operating on the Bitcoin network, thus avoiding excessive advantages while preventing unfair behavior;
• The original intention of Bitcoin is to achieve complete transparency, fairness, and auditability. During issuance, everyone has a fair opportunity to participate, and all miners can independently participate in mining, bearing their own computing and electricity costs;
• The introduction of the Ordinals protocol provides a fairer sales method. Since contracts cannot be deployed on the Bitcoin network, it avoids various security risks and some selfish designs in smart contracts. Everyone can only deploy and participate in token minting fairly on a first-come, first-served basis, with the transaction fees paid directly determining whether they can be packaged by miners more quickly.

Inspired by the fair sales of BRC20, in the pursuit of a more decentralized token issuance mechanism, the NULS ecosystem's NERC20 has been launched as a new generation ERC20 fair launch platform, bringing the spirit of fair sales to the NULS chain and the emerging Linea chain.

1. What is NERC20?

NERC20, as an ERC20 fair launch platform, combines the advantages of Bitcoin's fair distribution and decentralization with the flexibility of smart contracts and programmability, supporting rapid deployment of fair issuance in EVM smart contracts. It aims to become a connector of trust for projects and communities, allowing anyone to deploy and mint tokens on NERC20.

NERC20 Token, as a token based on the ERC20 standard protocol, has more functionalities compared to BRC20:

• NERC20 Token has a wider range of application scenarios and can be managed in wallets familiar to the public;
• Supports use in the DeFi ecosystem, including DEX, staking, lending, etc.;
• NERC20 tokens have no Owner permissions (ownerless tokens), allowing every user to enjoy the value of the tokens on an equal basis;
• Tick character count can be upgraded;
• Highly decentralized, with contract deployment on-chain, including functions such as searching and finding, all conducted within smart contracts, allowing users to interact directly with the contracts;

Similar to most fairly distributed tokens, in NERC20, tokens are not pre-mined, and the total supply starts from zero and is mined until the hard cap is reached, ensuring that every token is fair and transparent. Additionally, to prevent the increasingly rampant witch attacks and smart contract bots from undermining participant fairness, NERC20 has added features such as a freeze period, holding conditions, and pre-sale/crowdfunding on top of the ERC20 standard contract.

Freeze Period:

The freeze period can prevent unfair trading by witches and smart contract bots to maintain participant fairness. After a user mints tokens for the first time, they enter a freeze period. If they wish to continue minting during this period, they need to pay a fee to the platform.

Each additional minting doubles the fee. For example, during the freeze period, the first minting will cost 1 NULS, the second will require 2 NULS, the third will require 4 NULS, and so on.

Moreover, for NERC20 with a freeze period set, batch minting (Rollup Mint) is not allowed.

Holding Conditions:

Deployers can set holding conditions (holding assets include NFTs and other ERC20 tokens) to prevent witch accounts from minting tokens on a large scale and quickly.

Pre-sale/Crowdfunding:

Deployers can set the pre-sale/crowdfunding price of the token to collect a certain fee during minting, but tokens that are generally recognized in the market are usually free to mint.

Based on the different combinations of the above three sets of attributes, the issuance of NERC20 Token has the following 8 subtypes:

When issuing a token contract, the issuer can set the above three sets of attributes as needed.

2. How to Deploy Tokens on the NERC20 Platform

Currently, the NERC20 2.0 version has introduced a choice of minting modes, which are divided into:

Free Mode: Users can mint freely without any fees. Users only need to fill in the above four items to issue a NERC20 token with no freeze period, no holding conditions, and free minting. Click "Confirm" at the bottom right, call the "metamask wallet," and you can start deploying the new token.

Donation Mode: Deployers can set the minting price and collection address, and users mint according to the set minting price. The minting unit price refers to the amount of NULS paid by the user during minting, and the minting price is denominated in NULS. When inputting 1, the cost of a single minting is 1 NULS; the donation collection address refers to the address where the deployer receives donations, defaulting to the current linked E NULS wallet address. In other words, the donation mode is similar to directly sending tokens to the deployer and does not establish a liquidity pool.

Liquidity Pool Mode: Deployers can set the minting unit price and liquidity pool ratio, and users mint according to the set minting price. The minted tokens will be added to liquidity according to the set ratio and the minting unit price NULS (100%). LP tokens will be automatically sent to a black hole for permanent destruction through the contract. The liquidity pool project can only be traded when the completion rate reaches 100%.

Liquidity Pool Ratio: After users donate, a certain percentage will be placed into the liquidity pool. For example, if the ratio is set to 30%, and a user mints and donates 1 NULS, then 1 NULS + 30% of the minted tokens will be placed into the liquidity pool.

Currently, the fee for deploying NERC20 TOKEN on the ENULS chain is set at 10 NULS, while the deployment fee on the Linea chain is 0.01 ETH. As the platform improves and optimizes, any future changes to the fee rules will also be decided by community proposal voting.

3. How to Participate in Minting on the NERC20 Platform

According to the official website, NERC20 currently supports both the ENULS chain and the Linea chain.

Purchasing on the ENULS Chain:

To participate in minting on the ENULS chain, you need to purchase NULS and then cross-chain it to E NULS through the NULS wallet nabox.io to proceed with minting.

NERC20 contract address on ENULS: 0x07f93a28b330ad4efF5d2aefD9C114E98e385a26

Purchasing on the Linea Chain:

To participate in minting on the Linea chain, you need to cross-chain ETH to Linea for purchasing. Similarly, you can complete the cross-chain to the Linea chain in the NULS ecosystem wallet nabox.io.

NERC20 contract address on Linea: 0xF3Cb1Dca9fba743952273E353b44976FA58c30eC

When users participate in minting on the NERC20 platform, they also need to be aware of the risks involved. It is advisable to refer to the above deployment modes and choose projects with a liquidity pool ratio of 30%-50%. Of course, you can also choose Free Mint projects to avoid the risk of capital return.

The minting process is as follows:

Click the button in the image above to start minting. The details of the token will be displayed as shown below:

Check if the minting parameters are correct.

Note: If they do not meet the requirements, a red prompt will appear, and you will not be able to continue minting.

After clicking the "Mint" button, send the transaction in your wallet, and complete the minting once the transaction is confirmed.

4. Advantages of NERC20

Although NERC20 is inspired by BRC20, it is not completely confined to the BRC20 framework. Instead, it offers a more appropriate interpretation of "fair launch" based on the characteristics of smart contract technology and ecosystems.

NERC20 applies the BRC20 mechanism to the NULS chain for one-click token issuance, absorbing the fair issuance characteristics of BRC20 while combining the composability of the DeFi ecosystem.

• NERC20 Token can be easily managed in wallets familiar to the public, eliminating the need to download a dedicated BTC wallet as required by BRC20, thus lowering the barrier for user participation while providing greater convenience.
• To prevent whales and scientists from holding excessive chips, project deployers can set up a whitelist on the NERC20 fair launch platform to achieve a fair launch.
• The liquidity pool mode allows for adding liquidity during minting based on the set ratio and minting unit price, with LP tokens permanently destroyed, preventing project parties from withdrawing from the liquidity pool and enhancing the safety of user participation in minting. (It is recommended that deployers allocate a larger proportion to the liquidity pool to increase the project's attractiveness.)
• Additionally, once the token minting is completed, trading will automatically commence on PheasantSwap (a DEX platform on Linea).

Conclusion

Undoubtedly, the launch of the fair launch platform NERC20 has achieved fair issuance on NULS and Linea, greatly simplifying the token issuance process. Developers can efficiently, reliably, and cost-effectively deploy tokens exclusive to their projects. Meanwhile, the liquidity pool mode will effectively prevent the occurrence of Rugpulls, significantly protecting users' rights and interests. In the future, NERC20 may become the main battlefield for Memecoins in the NULS and Linea ecosystems.

As the Linea ecosystem gradually rises, more projects will be launched on Linea, and NERC20 will seize the opportunity to inject more momentum into the development of the Linea ecosystem, with plans to expand to more public chains in the future.

Of course, NERC20's empowerment of NULS tokens and the invocation of the nabox.io ecosystem also provide greater vitality and potential for the development of the NULS ecosystem. While offering a fairer and more decentralized trading environment, the upgrade of the Tick character count in NERC20 will also open up more imaginative space for users, encouraging them to explore and develop more innovative applications based on NERC20 tokens.

Currently, the community governance Token $ NERC has been fully minted and is open for trading. In the future, a community governance voting platform will be launched to assist in the decentralized development of NERC20.