Initially, fixed-supply tokens, often associated with ICO-funded projects during the 2017-2018 ‘ICO boom’, set their tokens supply at the time of token sale. These tokens often set an arbitrary ‘cap’ on the amount to be raised – effectively setting, or at least targeting, a large, predetermined market capitalization for the token and the project. In this model there is no reserve (backing of the token) with real world value, making the token price vulnerable to major volatility. Price swings are especially volatile if a project utilized clever fundraising mechanics, like daily token auctions or double dutch auctions, in order to create a sense of artificial scarcity to quickly reach their ICO fundraising cap. Most importantly however, the challenge with this model is that after the completion of the initial sale, 100% of proceeds were provided to developers, irrespective of any actual usage traction or demonstrated viability.