> For the complete documentation index, see [llms.txt](https://ordizeal.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://ordizeal.gitbook.io/docs/ordizeal-pioneering-cross-chain-token-bridging-across-multiple-ecosystems/understanding-the-ordizeal-launchpad-mechanism-a-step-by-step-guide.md).

# Understanding the Ordizeal LaunchPAD Mechanism: A Step-by-Step Guide

**Introduction:** The Ordizeal LaunchPD mechanism is a sophisticated approach to conducting token sales on the Ordizeal platform. In this guide, we'll walk through the mechanics of LaunchPD using real numbers and formulas, providing you with a comprehensive understanding of how it works.

**Overview:** At its core, LaunchPAD is designed to facilitate fair and efficient token sales while maximizing participation and minimizing market manipulation risks. Let's break down the key steps involved in this process. Let's calculate the allocation and refund for the given total committed $wODZE of 2,500,000, with each $wODZE valued at $1.

**Step 1: Token Allocation** Let's consider a hypothetical token sale for the ABC token. We aim to distribute 100,000 ABC tokens for a total value of $500,000.

**Step 2:** Ordizeal's token, $wODZE, is valued at $1 each. Therefore, the maximum quantity of $wODZE available for purchasing ABC tokens is $500,000.

**Step 3: Participant Commitment** Participants in the token sale have the freedom to commit any amount of $wODZE. Let's assume 10 participants commit the following amounts:

* Investor 1: 50,000 $wODZE
* Investor 2: 100,000 $wODZE
* Investor 3: 200,000 $wODZE
* Investor 4: 250,000 $wODZE
* Investor 5: 300,000 $wODZE
* Investor 6: 400,000 $wODZE
* Investor 7: 450,000 $wODZE
* Investor 8: 500,000 $wODZE
* Investor 9: 550,000 $wODZE
* Investor 10: 600,000 $wODZE

**Step 4: Oversubscription Handling** The total committed $wODZE is 2,500,000 which exceeds the available $wODZE for purchase ($500,000). Therefore, the sale is oversubscribed.

<figure><img src="https://1874730553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAGDSE0tVTzbSLzatjoBS%2Fuploads%2FJFhjyW7Bs2wiubEoTtbo%2FScreenshot%202024-03-13%20at%2011.19.34%20AM.png?alt=media&amp;token=04f09a46-e2d1-4441-b443-7d298558a95f" alt=""><figcaption></figcaption></figure>

**Step 5: Utilization of Committed $wODZE** In this scenario, only 20% of the committed $wODZE are utilized for the purchase of ABC tokens, while the remaining 80% are refunded to users.

**Step 6: Allocation of ABC Tokens** The proportional allocation of ABC tokens for each participant is calculated based on their committed $wODZE. Using the oversubscription ratio and utilization percentage, we can determine the allocation as follows:

<figure><img src="https://1874730553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAGDSE0tVTzbSLzatjoBS%2Fuploads%2FLPc5MW725YnPBb5iOpQW%2FScreenshot%202024-03-13%20at%2011.22.08%20AM.png?alt=media&amp;token=140060b2-4875-4a8a-97af-566cdff19b54" alt=""><figcaption></figcaption></figure>

**Step 7: Refund of $wODZE** After the token sale concludes, participants receive a refund of 80% of their committed $wODZE. The formula for the refund is:

<figure><img src="https://1874730553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAGDSE0tVTzbSLzatjoBS%2Fuploads%2FtCQY8Mo8TlBEGHnP5Sor%2FScreenshot%202024-03-13%20at%2011.22.59%20AM.png?alt=media&amp;token=859a9143-3c9b-474c-b33e-dd057fe662b6" alt=""><figcaption></figcaption></figure>

**Conclusion:** The Ordizeal LaunchPD mechanism provides a transparent and equitable way to conduct token sales, ensuring fair participation for all investors. By understanding the calculations involved, participants can confidently engage in token sales on the Ordizeal platform.