Anti-Whaling Policies

At Blacksail Finance, we are committed to fostering a fair and equitable market for our community. Our anti-whaling policies aim to counteract the challenges faced by bonding curve models and prevent the negative impact of early whale buyers who dominate supply and destabilize token value.

The Problem with Whales

In traditional bonding curve models:

• Whales (large-scale investors) tend to dominate early markets by purchasing large portions of the token supply.

• This behavior creates an unfair market, where early big buyers (Whales):

  • Push token prices up rapidly due to bonding curve mechanics.

  • Eventually "dump" their holdings at inflated prices, causing significant value loss for smaller investors.

These practices harm the broader community and undermine trust in the protocol.

Our Solution: A Closed Market with Purchase Caps

To prevent these issues and ensure fair market participation, Blacksail Finance has implemented the following measures during the early phase of SAIL token distribution:

Closed Market for Early Investors

A closed market period will give early investors a fair chance to purchase SAIL tokens without the risk of whale domination.

During this period: A purchase cap of $500 USDC per person will be enforced. This cap prevents any single individual from acquiring an oversized position in the token supply, reducing the likelihood of "pump and dump" scenarios.

Eligibility for the Closed Market

Only whitelisted individuals will be allowed to participate in the closed market phase. To qualify for whitelisting:

Users must have a deposited value of $100 or more in Blacksail Finance vaults during the snapshot period. This ensures that early investors are genuine participants in the protocol's ecosystem and rewards our community members for their engagement.

Protocol Safeguards: Timelocked Supply

The protocol itself will play a role in ensuring a balanced token launch:

• Upon deployment of the SAIL curve contract, the protocol will:

  • Purchase the first ~5% of the supply.

  • Timelock this supply in a smart contract for an extended period, lasting beyond the closed market phase and well into the open market period of SAIL.

This timelock adds additional stability and discourages speculative market manipulation.

Benefits of Our Approach

By implementing these measures, Blacksail Finance ensures:

• A fair and transparent market for all participants.

• Protection against whale domination and speculative dumping.

• Stronger trust and long-term value for our community.

We are committed to creating a sustainable and balanced ecosystem that benefits everyone, not just the largest players.