> For the complete documentation index, see [llms.txt](https://star-fun.gitbook.io/star/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://star-fun.gitbook.io/star/launching-on-star/who.md).

# fundamentals

## what is star?

**star** is a fundraising launchpad for builders. Instead of pitching VCs, you launch a **token sale** where backers around the world can fund your project on‑chain in less than a week. The only credential you need is a history of shipping code. 

We wrote this page to get you up to speed on all of the concepts and ideas you should know. If you're well-versed in web3 terms, you can skip ahead to[how it works](/star/launching-on-star/how-it-works.md).

## what is a token?

A **token** is a programmable digital asset that lives on the Solana blockchain and can be sent, traded, or embedded directly in your product. Think of it like:

* **Ticket** – proves access to an exclusive event or Discord channel.
* **Currency** – lets users pay for in‑app actions or premium features.
* **Rewards Points** – allows you to reward users for actions that help your project. 

The key: pick one or two things that make sense for your project and community. Start there. You can always add more utility as you grow.

> **Heads‑up:** Tokens launched on star are *utility assets*, not securities. Avoid promising guaranteed returns on investment.

## why raise with a token?

Token sales let you raise capital and build a community by selling a piece of your project—on-chain, transparently, and globally. Instead of pitching VCs, you offer tokens: digital assets that can power your app, govern your protocol, or simply represent a stake in your network. 

A token lets you raise capital **and** bootstrap a community that’s economically aligned with your success.

<table><thead><tr><th width="249"></th><th>Token Sale</th><th>Traditional Equity</th></tr></thead><tbody><tr><td><strong>Ownership</strong></td><td>You keep 100 % of company equity</td><td>Shares are diluted</td></tr><tr><td><strong>Community</strong></td><td>Backers become users <em>and</em> promoters</td><td>Usually investors only</td></tr><tr><td><strong>Liquidity</strong></td><td>Token can trade day‑one</td><td>Shares are illiquid for years</td></tr><tr><td><strong>Speed</strong></td><td>Launch &#x26; close in ≤ 7 days</td><td>3‑6 months (or more)</td></tr><tr><td><strong>Global Reach</strong></td><td>Anyone with USDC or SOL can join</td><td>Accredited investors only</td></tr></tbody></table>

In short: Token sales on star.fun are a way to fund, launch, and grow—on your terms, with your community, and without gatekeepers.

## key concepts

| Term                 | Quick Definition                                                                                                            |
| -------------------- | --------------------------------------------------------------------------------------------------------------------------- |
| **Wallet**           | Like a crypto bank account. Backers use it to hold USDC and your token.                                                     |
| **Smart Contract**   | Self‑executing code that handles your raise, vesting, and liquidity—no middlemen.                                           |
| **Contract Address** | The exact contract address for your token. Visible on your project page.                                                    |
| **Liquidity Pool**   | On‑chain marketplace where your token trades against USDC or SOL.                                                           |
| **DEX**              | A decentralized exchange (or *DEX*) is a peer-to-peer marketplace where transactions occur directly between crypto traders. |