Author: Haotian

Let's talk about the newly launched TGE price discovery mechanism based on BuildKey by Binance Wallet and Aspecta.

Although Aspecta has already launched similar community activities, Binance Wallet can clearly accelerate the adoption of the BuildKey mechanism, while also completing a key component needed for the Binance Chain ecosystem. Specifically:

1) The BuildKey mechanism is essentially a dynamic pricing system based on Bonding Curve.

In simple terms: Users can deposit specified assets to obtain Keys, and as the purchase volume of Keys increases, the Bonding Curve mechanism drives the price to rise along the curve, allowing users to exchange tokens proportionally during the TGE.

Compared to the traditional "one-size-fits-all" pricing model where project parties set prices unilaterally, BuildKey allows the market to discover and define prices through real capital flow.

This helps to enhance the transparency of early pricing for TGE projects, while also allowing more users to participate in the price discovery process and gain more opportunities for benefits.

This is somewhat similar to the "internal trading" model of PumpFun, which addresses the dual pain points of early liquidity shortage and unfair pricing through a progressive pricing mechanism. Therefore, the adoption of the BuildKey mechanism by Binance Wallet for the first phase of the TGE project is a new attempt to further expand community user participation in the Binance ecosystem.

2) Why do I say this? Because the introduction of BuildKey perfectly compensates for the shortcomings of the Binance Alpha Point airdrop system.

The current Binance Alpha system allows users to inject market-making funds into the ecosystem by accumulating points (through trading, providing DEX liquidity, etc.) to share in the airdrop from a shared pool, but the prices at which users participate come from the project party's self-determined pricing. With the addition of the BuildKey mechanism, users can also participate before the TGE.

In other words, the introduction of BuildKey will create a brand new value capture path for the Binance Alpha system: deposit BNB to purchase Keys → obtain early premiums through curve trading → exchange tokens proportionally during the TGE.

This can be seamlessly connected with the original value capture mechanism of Alpha users accumulating trading volume → obtaining points → exchanging for shared pool airdrops, forming a complete closed loop from price discovery before TGE to points mining.

3) From the user experience perspective, the inclusion of Binance Wallet will significantly lower the participation threshold for BuildKey.

Previously, users needed to perform relatively complex DeFi operations and meet certain thresholds to participate in Aspecta's community TGE activities, while Binance Wallet users can conveniently complete BuildKey purchases directly within a familiar interface. The key point is that integrating Alpha Point will also prevent bot participation, making early price discovery fairer and helping listing projects on the Alpha platform gain more early reputation.

If the Binance Alpha system has driven liquidity in the Binance Chain ecosystem through the points airdrop mechanism, then the BuildKey price discovery mechanism will help Binance Wallet become the preferred platform for TGE. In my view, this is the main purpose of Binance Wallet introducing BuildKey.

Once BuildKey is successfully implemented on Binance Wallet, it is likely to become a standardized TGE component in the industry.

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