Thanks to the advent of initial exchange offerings (IEOs), it has become possible that participants for the token sales can be chosen. The most common method of making this selection is based on the lottery system, which is completely centralized and often seen with suspicion and doubt from investors.
Fortunately, the UniLend has decided to use the Chainlink Verifiable Random Function (VRF) for its token sale. VRF will ensure that all numbers generated will be completely random and can be verified by any participant with the help of cryptographic proofs. Undoubtedly this process has taken the transparency and authenticity of the whole process to a different level altogether.
Finer Details
The VRF function is based on the verifiable random function of Goldberg and its high authenticity can be estimated from the fact that users can audit it at any point in time. In addition to providing optimum security for the process, the VRF-based process is also helpful in enhancing the deployment of smart contracts and protocols involving layer-two functions.
To go ahead with the sale of the token publicly, an Ethereum-based smart contract will be implemented by the UniLend. Chainlink VRF will generate a random number to start the process, and the address of the winner will subsequently become a basis for the selection in the next round. This process will continue until the required number of addresses is chosen by the system. The organization is yet to announce the upper limit in terms of the participant selection as the final number will depend upon the rate of USD/ETH pair.
Conclusion
It is an important development in the process of public token sales as the authenticity and transparency of such strategies have always been questioned in the past. But now, with the deployment of Chainlink VRF, it is expected that all discrepancies and doubts related to the fair selection of the participants will be put to rest forever. This selection of the random number generator mechanism by UniLend will also inspire and motivate others in the industry to come forward and use the more authentic methods of selection to win over investors and customers.