How Does a Competition Work?

About Sedona's unique competition model

Introducing "Winner Take All" Competitions

While tokens are priced like Pump Fun on Sedona and creating tokens are just as easy, Sedona is not a launchpad. The key differentiator to what makes Sedona unique is its "winner take all" competition model. Competitions are one week long and tokens created during a competition on Sedona.fun are only tradable as long as the competition is active; when the competition ends, any user has the ability to submit a zk Proof that the token with the highest market cap indeed has the highest market cap.

When the Proof is submitted, the winning token--token/pool with highest market cap--is migrated to Meteora and is seeded with the trading fees incurred during the competition and any remaining liquidity in any other tokens/pools.

Why Is This Model Better Than Existing Launchpads

In the traditional launchpad model, the success of a token is independent to other tokens on the launchpad. Often when a token launches, copycat tokens are deployed as well; furthermore, many tokens are launched around the same time with similar themes: referred to by some as a "meta". The similarity of tokens post-launchpad create a liquidity fragmentation problem as traders are divided between multiple similar tokens: preventing a "runner", tokens with outlier performance. Instead of solving the curation problem, launchpads exacerbate the problem.

The "winner takes all" model flips this dynamic on its head. The success of a token is now dependent on its quality relative to other tokens in its cohort/competition. Ultimately, this reduces dilution between copycats because only one coin can launch therefore traders need to be more confident in their decisions.