> For the complete documentation index, see [llms.txt](https://naest.gitbook.io/Docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://naest.gitbook.io/Docs/glossary.md).

# Glossary

**Airdrop**: Free distribution of tokens to promote a project.

**AML (Anti-Money Laundering)**: Procedures aimed at preventing money laundering.

**Blockchain**: Distributed ledger technology underlying most ICOs.

**Bounty Program**: Reward program to promote the ICO.

**Burning or Destruction Mechanisms**: Permanent destruction of tokens to reduce supply.

**DAO (Decentralized Autonomous Organization)**: Decentralized autonomous organization.

**DApps (Decentralized Applications)**: Decentralized applications running on a blockchain.

**DeFi (Decentralized Finance)**: Decentralized finance or financial systems based on blockchain.

**Decentralization**: Distribution of power and control away from a central authority.

**DePIN**: Decentralized Physical Infrastructure Network – Decentralized physical infrastructure network.

**Exchange**: Cryptocurrency exchange platform where tokens can be listed after the ICO.

**FOMO (Fear Of Missing Out)**: Fear of missing an investment opportunity.

**Gas**: Transaction fees on certain blockchains like Ethereum.

**Governance Token**: Token allowing holders to vote on certain project decisions.

**Hard Cap**: Maximum amount of funds that the ICO seeks to raise.

**Hard Fork**: Major modification of a blockchain protocol resulting in a split.

**ICO (Initial Coin Offering)**: Fundraising method through the issuance of tokens.

**KYC (Know Your Customer)**: Process of verifying the identity of investors.

**Liquidity**: Ease with which a token can be bought or sold in the market.

**Liquidity Pool**: Reserve of cryptocurrencies used to facilitate exchanges.

**Listing**: Process of adding a token to an exchange platform.

**Market Making**: Post-ICO market making involves maintaining an active and balanced market for the token after its release (listing).

**Destruction Mechanisms (Burn Mechanisms)**: Processes by which tokens are permanently removed from circulation, thereby reducing total supply.

**Mining**: Process of validating transactions on a blockchain.

**Node**: Computer participating in the blockchain network.

**Limited Offer**: Offer in which a maximum number of tokens will never be created, unlike an unlimited offer.

**Presale**: Private sale of tokens before the public sale.

**Proof of Stake (PoS)**: Consensus mechanism in a blockchain based on token ownership.

**Proof of Work (PoW)**: Consensus mechanism in a blockchain based on computational work.

**ROI (Return on Investment)**: Return on investment.

**Roadmap**: Strategic plan detailing future steps of the project.

**SEC (Securities and Exchange Commission)**: Financial regulatory authority in the United States.

**Smart Contract**: Autonomous program that automatically executes conditions on a blockchain.

**Soft Cap**: Minimum amount of funds to be raised for the ICO to be considered successful.

**Soft Fork:** Minor modification of the protocol that remains compatible with older versions.

**Staking:** Locking tokens to support network operations and earn rewards.

**Token:** Digital asset issued during an ICO.

**Deflationary Token:** Token whose circulating supply decreases over time, which tends to increase its value.

**Token Sale:** Period during which tokens are sold to the public.

**Tokenomics or Tokénomie:** Study of the economy and distribution of tokens.

**Utility Token or Token Utilitaire:** Token providing access to a specific service or product within an ecosystem.

**Valuation:** Increase in token value over time.

**Vesting:** Lock-up period for tokens before they can be sold.

**Volatility:** Measure of price fluctuations of an asset in the market.

**Wallet:** Digital wallet for storing and managing tokens.

**Whitelist:** List of pre-approved investors to participate in the ICO.

**Whitepaper:** Document detailing the project, its technology, and ICO terms.

**Yield Farming:** Investment strategy in DeFi to maximize returns.

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