In IDO and IEO context, an "allocation" is the amount of tokens you're permitted to purchase in a specific token sale — your share of the available supply, determined by the launchpad's allocation mechanics. Getting allocation (being eligible to buy at the sale price) is often the most contested step in the IDO investment process, with oversubscription regularly reducing individual allocation sizes significantly.
How Allocations Are Determined
Proportional Allocation
Your allocation = (your staked launchpad tokens ÷ total staked tokens) × available IDO tokens × IDO price. Used by: Binance Launchpad (BNH weighted), Kommunitas (KOM proportional), OKX Jumpstart (OKB proportional). Every staker gets something — but 100× oversubscription means 100× less than your maximum eligible amount.
Tiered Fixed Allocation
Your allocation = the maximum purchase limit for your tier level. Used by: DAO Maker (DAO Power tiers), Polkastarter (POLS tiers), Seedify (SFUND tiers). Once you're in a tier, more staking doesn't help — the tier threshold is all that matters. Lottery decides who within a tier gets access in oversubscribed situations.
Lottery (Random Selection)
Eligible investors (meeting minimum staking) enter a random draw — winners receive guaranteed allocation, non-winners receive nothing. Polkastarter mid-tiers, IDO launchpad community rounds. Pure luck within the eligible pool.
FCFS
First wallets to transact after the sale opens receive allocation until hardcap. Speed and gas optimisation determine success.
Strategies for Getting More Allocation
- Multi-platform participation: Apply on every eligible platform simultaneously — if the project has both an IEO and IDO, participate in both
- Maximise proportional stake: For proportional models (Binance, Kommunitas), every additional token improves allocation
- Reach guaranteed allocation tier: On tiered platforms, hitting the guaranteed tier threshold is the highest-priority goal
- Social Mining (DAO Maker): Complete community tasks to improve DAO Power beyond pure staking
- Early registration: Register as early as possible in the registration window — some platforms prioritise early registrants
For the complete tier system guide showing how tiers determine allocation, see our IDO tier system guide. For the base allocation concept, see our crypto allocation guide. For the lottery vs guaranteed allocation comparison, see our IDO lottery vs guaranteed guide.
Glossary
- Oversubscription
- When total investor demand exceeds available tokens — resulting in each participant receiving a pro-rata reduced allocation.
- Allocation Pool
- The total token amount reserved for a specific investor category in an IDO (public pool, community pool, guaranteed tier pool).
- Social Mining
- DAO Maker's system earning allocation power through verified community contributions — content creation, forum participation, referrals — beyond pure token staking.
Disclaimer
Important: Getting allocation doesn't guarantee investment returns. All IDO investments carry risk. This guide is educational only. CryptoPresaleNews.com is not a licensed financial advisor.
