Launchpool
Also called: launch pool · token farming pool
Definition
A Launchpool is an exchange program where you lock tokens you already hold, such as the exchange token or a stablecoin, for a set period to earn a new token before or around its listing.
How launchpool works
Binance Launchpool popularised the format, and other exchanges run similar programs under different names. Each campaign lists eligible staking assets, a total reward pool and a duration. Rewards are usually calculated hourly based on your share of the total staked amount and credited to your account.
Your staked tokens stay yours and can usually be withdrawn at any time, though you stop earning once they leave the pool. The real cost is price risk on what you stake: if you buy an exchange token just to join, a drop in its price can outweigh the rewards.
Rewards are often small for each participant because many users stake. Most programs require KYC and are not available in every country. Per-user caps, eligibility rules and reward schedules vary, so read each campaign's rules before staking.
Example
Suppose a campaign distributes 3,000,000 new tokens over 10 days, so 300,000 per day. You stake 2,000 USDT in a pool that holds 400,000,000 USDT in total. Your share is 2,000 divided by 400,000,000, which is 0.0005%. That earns you 1.5 tokens per day, or 15 tokens over 10 days. If the token lists at 0.40 USDT, your reward is worth about 6 USDT.
Common mistakes
- Buying a volatile exchange token only to join a Launchpool without considering its price risk.
- Expecting the advertised total rewards to translate into large personal earnings.
- Missing that rewards stop accruing as soon as you unstake.
Learn and practise
Try it on an exchange
Bitget.com offers this. Sign up through our link and the code below is applied.
nexu888Open Bitget.comFAQ
Is Launchpool free money?
There is no direct fee, but the assets you stake carry price risk and rewards depend on your share of the pool. Many users earn modest amounts.
What is the difference between Launchpool and Launchpad?
In a Launchpool you stake tokens to earn a new token for free. In a Launchpad you commit funds to buy a new token in a sale.