What Is a Launchpool? Unlocking “Zero-Cost Mining” in the Crypto World

In the world of Crypto Assets, Launchpool has become a core way for ordinary investors to participate in early projects and obtain new tokens. Simply put, it allows users to stake existing tokens (such as BTC, USDT, or ETH) in exchange for new project tokens that have not yet been publicly listed as rewards. This model is led by exchanges and combines liquidity provision, token distribution, and community building, evolving into an indispensable infrastructure of the crypto ecosystem by 2025.

As one of the industry benchmarks, Gate Launchpool launched over 80 token projects in the first half of 2025, attracting millions of users to participate, with pledged funds reaching billions of dollars, making it the best window to observe the Launchpool mechanism.

Core Operation Mechanism of Launchpool: Staking is Mining

The essence of Launchpool is the zero-cost participation in the early distribution of new projects. The process is clear and transparent, divided into four key stages:

• Project Warm-up: After Gate reviews the project, the Launchpool pool is opened, announcing the total token allocation, the staking coins (such as BTC, USDT), and the duration (usually 7-30 days);
• User Staking: Users deposit supported tokens into the designated pool, for example, staking BTC in the NXPC project, or staking AVAII and USDT in the MIRAI project;
• Reward Distribution: New tokens are allocated to user accounts every hour based on the staking ratio. For example, the more you stake and the earlier you participate, the more you receive;
• Token Listing: After the event concludes, the new coins are open for trading in the Gate spot trading area, and users can sell or hold.

Example: In May 2025, users stake BTC through Gate to participate in the NXPC project, receiving NXPC token rewards every hour, with an annualized yield of about 2%, and the staked BTC can be fully withdrawn after the event ends.

Why Choose Gate Launchpool? Low Threshold and Ecological Advantages

Compared to similar platforms, Gate Launchpool demonstrates three differentiated advantages in 2025:

1. Support for mainstream asset staking: It supports not only platform coins but also opens staking channels for mainstream coins such as BTC, ETH, and USDT, avoiding forcing users to purchase platform coins;
2. Real-time rewards and flexible withdrawal: Rewards are automatically distributed every hour, and most pools support immediate unstaking, reducing opportunity costs;
3. Strict selection of quality projects: Gate conducts due diligence on applying projects, reducing the risk of users encountering scams or low-quality tokens. For example, when the data protocol EDGEN launched, it attracted 80,000 users to participate, and the token performed steadily after its listing.

Step-by-Step Participation Guide: Getting Started with Gate Launchpool

To join Gate Launchpool, simply complete the following steps:

1. Register and complete KYC: Create an account on Gate and pass identity verification;
2. Deposit supported tokens: Transfer BTC, ETH, USDT into your spot wallet;
3. Choose a Launchpool project: Go to the “Launchpool” section on the platform’s homepage and browse project details;
4. Stake tokens: Enter the amount and confirm (the minimum amount can be as low as the equivalent of 0.01 USDT);
5. Claim and manage rewards: Check for newly added tokens every hour, and after the period ends, you can trade or withdraw.

Coexistence of Returns and Risks: Three Principles for Rational Participation

Although considered “low-risk mining”, Launchpool still has some risks that cannot be ignored:

Return Opportunities

• Historical statistics show that the average return for participating in a single project is about 1.9%, with an annualized return of up to 130%;
• Early acquisition of potential tokens, such as the game ecosystem token NXPC, has increased due to ecological demand after its launch.

Risk Warning

1. New coin price fluctuations: The project token may have significant amplitude after listing;

2. Staking asset liquidity lock-in: During this period, if there are market fluctuations, other trading opportunities may be missed;

3. Project failure risk: The long-term value of the token depends on the project’s development, requiring independent research on the fundamentals.

Risk Control Suggestions: Avoid all-in on a single project, diversify staking across multiple pools; pay attention to project whitepapers and token economic models; set profit targets and take profits in a timely manner.

The Evolution of Launchpool: Trends and Innovations from Gate in 2025

In 2025, the Launchpool model will further upgrade, and Gate will lead two major innovations:

• Diversification of Staking Assets: Expanding from early support for platform coins to include BTC, ETH, and even NFTs, attracting a broader range of coin holders;
• Integration of AI and Cross-Chain Scenarios: For example, the WalletConnect (WCT) token Launchpool combines smart conversation protocols to support multi-chain dApp interactions, promoting the practical application of technology.

Conclusion: Why is Launchpool a Must for Web3 Users?

Launchpool has redefined the way ordinary people participate in early-stage crypto projects: no capital investment, no technical barriers, and simply by staking, one can share in the growth dividends of new projects. With continuous optimizations on platforms like Gate, its transparency and security have significantly improved, making it the “golden gateway” for passive income in crypto assets by 2025.

For beginners, it is recommended to start with small amount staking of mainstream coins (such as USDT) to gradually understand the project selection logic, so as to capture opportunities under controllable risks. Web3 Growth Dividend.