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Crypto Terms:  Letter S
Jun 19, 2023 |
updated Apr 03, 2024

What is SHO (Strong Holder Offering)?

SHO (Strong Holder Offering) Meaning:
SHO (Strong Holder Offering) - a crypto fundraising service where the investors are chosen based on specific criteria like their activities in the network.
2 minutes

Let's find out SHO (Strong Holder Offering) meaning, definition in crypto, what is SHO (Strong Holder Offering), and all other detailed facts.

A strong holder offering (SHO), now known as a refundable Strong Holder Offering (rSHO), is a crypto fundraising mechanism. Its unique aspect is that the investors are chosen based on their activities on the blockchain network, as well as other project criteria.

SHO projects can be focused on receiving funding from investors that hold a particular cryptocurrency. This funding mechanism is heavily utilized by DAO Maker to focus on public investments.

Some of the criteria for an investor to be considered for an SHO are:

  • Holding a specified competitor token for a predetermined length of time, usually at least 3-6 months;
  • Holding at least $10,000 worth of a token for at least one year;
  • Being an active liquidity provider on a decentralized exchange (DEX);
  • Possessing a predetermined transaction volume, at least $1-5 million, within the past 30 days.

The SHO mechanism incentivizes investors to ensure they have strong hands – crypto investments that they hold onto for an extended period. DAO Maker favors investors with strong hands over investors with shorter investments by providing them with more opportunities to be chosen for the strong holder offerings.

DAO Maker allows SHOs to be refunded if the investors decide to withdraw their support and opt out of the project. However, the withdrawal period may be limited. If the value of the token being funded via the SHO increases by 400% and maintains this rate for at least 120 consecutive days, the investments cannot be withdrawn.

Prior to launching a new SHO, DAO Maker conducts a series of tests on the new investment project. This ensures that the projects participating in the fundraising strictly commit to their roadmap and reduces the rate of scam projects receiving funding.