$LOYAL Token Offering

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Overview of Loyal and the $LOYAL Token Offering

Loyal is an open-source, decentralized protocol designed to provide privacy-preserving AI intelligence on the Solana blockchain. It addresses concerns around mass surveillance in AI interactions, such as chats with large language models (LLMs) being used for targeted advertising, model training, or legal actions against users. The protocol leverages technologies like MagicBlock for ephemeral rollups and Arcium for confidential computing, ensuring no single point of failure. Key features include confidential oracles for computations, granular access controls in rollups, and decentralized storage for encrypted data. The project positions itself as a permissionless, censorship-resistant alternative to centralized AI services, emphasizing user privacy and auditability.

The token offering is structured as an Initial Coin Offering (ICO) on the MetaDAO platform, a futarchy-governed launchpad on Solana. Launched on October 18, 2025, the ICO runs for 4 days and operates on a unique mechanism with a fixed token allocation and uncapped USDC raise. As of the latest available data on October 19, 2025, the fundraiser has $1,001 committed (0% of the $500,000 minimum goal), with a $60,000 team allowance and approximately 3 days and 23 hours remaining. However, recent updates from the project’s social media indicate 512 contributors so far, suggesting potential growth in commitments. The ICO is accompanied by a 24-hour development stream where the team is building features like Telegram-integrated transactions on Arcium.

Key Mechanics of the Offering

  • Raise Structure: Contributors commit USDC during the 4-day window. The founder sets a discretionary cap after the raise ends to determine the accepted amount. If commitments exceed the cap, tokens are distributed pro-rata, and excess USDC is refunded. There is no in-protocol limit on claimable funds beyond the minimum.
  • Minimum Threshold: If the $500,000 minimum is not met, all commitments are fully refunded to participants.
  • Success Scenario: Upon meeting or exceeding the minimum, all funds transfer to a market-governed DAO treasury. 20% of raised USDC and 5 million tokens are allocated to liquidity pools (LPs) on Solana DEXes, enabling the project to effectively buy back tokens below the ICO price and sell above it. The team can draw a monthly budget from the treasury, with larger spends requiring governance proposals.
  • Completion Process: If the founder doesn’t complete the launch within 48 hours after the raise, anyone can permissionlessly call a “complete” function via a blockchain transaction, directing excess funds over the minimum to the DAO treasury.
  • Legal and Governance: A DAO LLC or equivalent entity must be created within 60 days of success, bound by an operating agreement. Participants agree to this upon purchase.

Token Details and Tokenomics

  • Token Standard and Address: $LOYAL is a Solana SPL token with the contract address LYLikzBQtpa9ZgVrJsqYGQpR3cC1WMJrBHaXGrQmeta.
  • Allocation:
  • 10 million tokens (allocated pro-rata to ICO participants based on the final cap).
  • 5 million tokens (to LPs upon success).
  • Up to 15 million tokens (optional team performance package, representing 50% of initial supply; vested in 5 tranches at 2x, 4x, 8x, 16x, and 32x the ICO price, with an 18-month minimum lockup, extendable by the founder).
  • Total Supply: Implied initial supply of 30 million tokens (based on the above allocations). Mint authority transfers to the DAO treasury upon success, allowing for potential future issuances via governance.
  • Utility: While specific $LOYAL utility details are limited, the token is tied to the protocol’s ecosystem, likely for governance in the DAO, staking, or accessing premium features in the privacy network. The project emphasizes its role in funding development against surveillance threats.

No detailed lightpaper summary was extractable beyond a focus on proposing an open-source, multi-layered peer-to-peer network for agentic AI with privacy guarantees.

Risks and Considerations

This is a high-risk investment typical of early-stage crypto projects:

  • Financial Risks: Tokens are sold “as-is” with no guarantees of value, utility, or returns. Purchases are final and non-refundable (except if the minimum isn’t met). Potential for total loss due to market volatility, project failure, or technical issues.
  • Regulatory Risks: Not classified as securities, but buyers must ensure compliance in their jurisdiction. The project involves creating a DAO LLC, adding legal complexity.
  • Operational Risks: Low current commitments raise doubts about meeting the minimum, potentially leading to refunds and project delays. Dependency on founder actions for cap setting, entity creation, and development.
  • Market Context: MetaDAO has seen success with other ICOs (e.g., Umbra raising $155 million from 10,518 investors), but Loyal’s progress is slower. Privacy-focused projects face competition and technical challenges in confidential computing.
  • Positive Aspects: Strong emphasis on open-source and privacy aligns with growing concerns over AI surveillance. Backed by established Solana tech stacks.

Overall, the offering suits those aligned with the privacy mission but requires thorough due diligence. It’s not financial advice—crypto investments can result in significant losses.

How to Get $LOYAL Tokens

During the ongoing ICO (as of October 19, 2025):

  1. Visit the MetaDAO fundraiser page for Loyal.
  2. Connect a Solana-compatible wallet (e.g., Phantom or Solflare) to the site.
  3. Commit your desired amount of USDC (ensure you have sufficient funds and gas for transactions).
  4. Review and agree to the terms, including the operating agreement and founder covenant.
  5. Submit the transaction on-chain. Your commitment is locked until the end of the 4-day period.
  6. After the raise, if successful, tokens are distributed pro-rata to your wallet based on the founder’s cap decision. Refunds occur automatically if the minimum isn’t met or for excess commitments.

Post-ICO (if successful):

  • Tokens will be tradable on Solana DEXes like Raydium or Jupiter. Add liquidity using the contract address LYLikzBQtpa9ZgVrJsqYGQpR3cC1WMJrBHaXGrQmeta in your wallet to buy/sell.
  • Monitor the project’s social media or Telegram for launch announcements.

Ensure you understand the risks and only commit what you can afford to lose. For more details, refer to the official Loyal or MetaDAO documentation.