> ## Documentation Index
> Fetch the complete documentation index at: https://docs.gtfo.vc/llms.txt
> Use this file to discover all available pages before exploring further.

# How 1st benefits projects

Most token projects launch into a market structure defined by low circulating supply and high fully diluted valuation.

A small float trades publicly, while a large portion of supply sits in locked private allocations with a significantly lower cost basis. This creates a structural imbalance. Early investors hold large amounts of future supply at low prices, while the spot market prices the token based on a much smaller float.

As vesting unlocks occur, this imbalance often results in concentrated sell pressure and sharp volatility, even when underlying demand for the token exists. Historically, low-float, high-FDV launches frequently see post-launch drawdowns of 60–90% as locked supply begins to unlock.

1st is designed to address this problem directly.

### **Replacing low cost basis with higher cost basis**

The core mechanism through which 1st improves market structure is cost basis replacement.

When an early investor sells mirror tokens during vesting, they are transferring future unlocks to a new buyer before the tokens enter circulation. That buyer accepts vesting in exchange for a discount, but typically acquires the tokens at a higher, market-driven cost basis than the original private round.

As a result, future supply moves from holders with very low cost bases to holders with higher cost bases before unlocks occur.

### **Simple example**

* An early investor holds tokens at a \$0.10 cost basis
* The token trades at \$1.00 on the spot market
* Instead of selling at unlock, the investor sells mirror tokens at a \$0.60 effective price
* A new buyer now holds the future unlocks at a \$0.60 cost basis

When the tokens eventually unlock, the unlocked supply is held by participants with significantly higher entry prices, reducing immediate sell pressure and improving spot market stability.

### **Distribution to a broader market**

1st and Spring together serve a large base of more than 220,000 investors who actively participate in private-market trading and investing.

1st is the only place where the public can access early-stage token allocations in a liquid, permissioned market. Before 1st, participation in this asset class required buying entire SAFTs or SAFEs through OTC deals, typically involving minimum commitments ranging from \$100,000 to several million dollars per allocation.

By fractionalizing and standardizing access to locked allocations, 1st opens private-market exposure to a much broader audience. This significantly expands demand for future supply and allows early-stage allocations to be distributed across a wider, more diverse group of participants.

### **Revenue-generating markets that are approved and transparent**

Trading on 1st is fully approved and sanctioned by projects.

All listings require explicit project approval, verified allocations, and fixed vesting terms. There are no opaque OTC deals, no off-platform transfers, and no synthetic claims. Ownership of locked tokens is visible on chain, and trades occur in a transparent, auditable market.

Projects earn fees on every trade that occurs on their markets, including both buys and sells. This allows projects to generate ongoing revenue from private-market trading activity and directly participate in the speculation around their early-stage allocations.

Instead of value being captured exclusively by early investors and secondary OTC intermediaries, projects earn revenue as locked allocations change hands over time. This turns private-market trading into a direct and recurring revenue stream for the project itself.