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.