What Are Tier Systems in Crypto Launchpads and How Do They Work?

First of all, congratulate yourself. You’ve already taken your first steps into decentralized finance, and that’s not a small thing. You’ve learned about Web3 projects, staking, and maybe even how to join a presale. Now you see this new term, tier systems , and you’re thinking, great, another thing I don’t understand.

Don’t worry. Tier systems sound complicated at first, but they’re not. In this blog, we’ll take you by the hand and explain what they are, why they exist, how they work, and what risks they bring. It’s easier than it looks, we promise.

What Is a Crypto Launchpad Tier System?

You already know that a crypto launchpad is like a startup incubator for Web3. It’s a platform designed to launch new projects safely and efficiently for both founders and investors.

A tier system is just one of the tools launchpads use. It divides investors into groups, or tiers, based on how much of the launchpad’s native token they buy or stake. The higher the tier, the more tokens of a new project you can buy when a sale goes live. Not every wallet gets the same access, so the system rewards those who commit more.

Why Do Launchpads Use Tier Systems?

Tier systems exist mainly to support the launchpad’s own token. By requiring investors to buy and stake it, they create demand and hold value in place. The launchpad token is volatile, and staking locks it up so it’s not immediately sold on the market.

At the same time, the tier system gives investors a clear structure: commit more, get more access. It’s a way to organize allocations and reward loyalty.

What Are the Different Tier Systems in Crypto Launchpads?

Tier systems aren’t all identical, but the logic is the same: small, medium, and large commitments are separated into levels.

How Are Tiers Usually Structured?

Most launchpads use a structure like bronze, silver, and gold; sometimes with names like platinum or diamond. Behind the labels, the meaning is simple:

• Lower tiers = smaller commitments, smaller allocations.
• Middle tiers = more staking, better access.
• Top tiers = highest commitments, biggest allocations, and sometimes extra perks.

What Do You Need to Qualify for Each Tier?

Each launchpad sets its own requirements. Usually, it’s a minimum amount of native tokens you must buy, stake, and hold for a certain period of time. The more you lock in, the higher the tier you reach.

On token-gated launchpads, this is the only way to access sales. At CoinTerminal, we do things differently. We don’t use tiers at all; our model is open access and refundable, so anyone can join without buying or staking an extra token.

What Are the Risks of Tier-Based Allocations?

Tier-based systems come with several downsides. While they aim to reward commitment, they often make participation more difficult for newcomers and smaller investors.

One of the main risks is high entry costs. To qualify for better tiers and higher allocations, users must stake or hold a significant amount of the platform’s native token. This setup creates a financial barrier that filters out beginners and casual investors who might not have the resources to compete at that level.

Another issue is the whale advantage. The system is designed to favor those who can invest more, giving them priority access, higher allocation limits, and early benefits. As a result, wealthier participants can dominate token sales, reducing fairness and limiting diversity within the community.

Finally, smaller investors often get excluded. Since allocation is tied to investment size, lower-tier participants receive fewer tokens, or none at all, despite contributing time and interest in the project. This undermines the original spirit of decentralized access that Web3 represents.

At CoinTerminal, we take a different approach. Our open-access model removes these barriers entirely. There are no tiers, no token gating, and no pre-sale KYC requirements. Everyone can participate on equal terms, ensuring a fairer and more inclusive way to access early-stage crypto projects.

Are Tier Systems Fair for All Investors?

No. Tier systems favor bigger wallets. Smaller investors are forced to play by rules they didn’t sign up for: buying into the launchpad token just to access a project they wanted in the first place.

For retail investors, who make up the majority of Web3, this often feels unfair. They just want to invest in a project, not in the platform’s token economy. That’s why CoinTerminal is different. We removed the tier system so everyone can join on equal terms.

Final Thoughts

Tier systems have become a standard in crypto launchpads. They reward loyalty, bring order, and stabilize native tokens, but they also block accessibility and tilt the table toward larger investors.

At CoinTerminal, we’re leading with a different model. No token-gating, no staking, no tiers. Just simple, refundable sales that anyone can join with stablecoins. And to keep things exciting, every contribution of 250 USDT or more automatically enters you into our crypto lottery, even if you later request a refund.

‍Browse our active sales now and see how open access works in practice.