Token Basics
Overview
Every successful campaign on RedCarpetHQ creates its own unique ERC-20 token. These tokens represent ownership stakes in the campaign and provide various benefits to holders. This guide covers the fundamentals of campaign tokens.
What Are Campaign Tokens?
Campaign tokens are blockchain-based digital assets that:
Token Creation
When Are Tokens Created?
Tokens are created when a campaign graduates (successfully reaches its funding goal):
1. Campaign reaches funding goal before deadline
2. Grace period completes successfully
3. Smart contract deploys the ERC-20 token
4. Tokens are distributed to supporters proportionally
Token Properties
Each campaign token has:
Name: The campaign's full name (e.g., "Awesome Film Project")
Symbol: A unique 3-5 character ticker (e.g., "AFP")
Decimals: 18 (standard ERC-20)
Total Supply: Fixed based on total funding raised
Contract Address: Unique Ethereum address
Token Distribution
Initial Distribution
Tokens are distributed based on contribution amounts:
``
Your Tokens = (Your Contribution / Total Raised) × Total Token Supply
Example:
Who Gets Tokens?
Token Utility
1. Trading
Marketplace Trading:
Price Discovery:
2. Dividends
Revenue Sharing:
Example:
3. DeFi Collateral
Borrowing Against Tokens:
Collateral Factors:
4. Governance (Future)
Planned features include:
Token Standards
ERC-20 Compliance
All campaign tokens follow the ERC-20 standard:
✅ Compatible with:
✅ Standard functions:
- Send tokens - Allow spending - Check balance - View total supplySecurity Features
Built-in protections:
Viewing Your Tokens
In Your Wallet
MetaMask:
1. Open MetaMask
2. Click "Assets" tab
3. Click "Import tokens"
4. Enter token contract address
5. Token appears in your wallet
Token Information:
On Block Explorers
Block Explorer:
Token Economics
Supply Mechanics
Fixed Supply:
Burn Mechanisms:
Price Factors
Token prices are influenced by:
📈 Positive factors:
📉 Negative factors:
Token Lifecycle
1. Pre-Graduation
Before campaign succeeds:
2. Graduation
When campaign succeeds:
3. Active Trading
Post-graduation:
4. Long-term
Ongoing:
Best Practices
For Token Holders
✅ Do:
❌ Don't:
For Producers
✅ Do:
❌ Don't:
Tax Considerations
Important: Token transactions may have tax implications:
Recommendation: Consult a tax professional familiar with cryptocurrency taxation in your jurisdiction.
Technical Details
Token Contract
`solidity``
// Simplified ERC-20 token structure
contract CampaignToken is ERC20 {
string public name;
string public symbol;
uint8 public decimals = 18;
uint256 public totalSupply;
// Standard ERC-20 functions
function transfer(address to, uint256 amount) public returns (bool);
function approve(address spender, uint256 amount) public returns (bool);
function transferFrom(address from, address to, uint256 amount) public returns (bool);
}
Integration with Platform
Tokens integrate with:
Frequently Asked Questions
Q: When do I receive my tokens?
A: Tokens are distributed automatically when the campaign graduates (successfully completes funding).
Q: Can I sell my tokens immediately?
A: Yes, once the campaign graduates, you can trade tokens on the marketplace.
Q: What if the campaign fails?
A: If a campaign fails, no tokens are created. You can claim a refund of your contribution.
Q: Are tokens refundable after graduation?
A: No, once a campaign graduates, tokens are not refundable. You can sell them on the marketplace instead.
Q: Can the producer create more tokens later?
A: No, the total supply is fixed at graduation and cannot be increased.
Q: What determines token value?
A: Market supply and demand, campaign success, revenue generation, and overall market conditions.
Related Resources
Need Help?
If you have questions about campaign tokens, contact our support team at support@redcarpethq.org.