Following from statelayers proposal I thought I would put forward an alternative design.
- 50 / 50 distribution of $T2 token between Nucypher and Keep Network.
- Large staker base for TBTC v2 launch.
- Liquidity at launch to avoid price distortion at launch from low liquidity.
- Ongoing DAO funding for partnerships / liquidity incentives / coverage pool.
- Reward active capital.
- Avoid creating large tax liabilities for token holders.
- Carry over existing vesting schedules
- Allow for the acquisition of other networks in the future.
I believe that the early adopters and active capital in the network should be rewarded for the risks taken in participating in NuCypher and Keep Network as these are the participants who will ensure the long term success of TBTC v2. My view is that this includes stakers and liquidity providers.
- Liquidity providers
- passive token holders
- passive token holders on exchanges
Some discussions with exchanges would be required to determine how to distribute tokens to passive holders on exchanges.
Initial Supply: 2,000,000,000 T2 Tokens.
- 75% to existing token holders.
- 12.5% stakedrop for first 6 months of TBTC v2.
- 7.5% to stakers based on time staked in the existing networks x amount staked.
- 2.5% to LPs based on time staked in existing pools x amount staked.
- 2% to the DAO treasury for partnerships / liquidity rewards / seeding a new pool.
- 0.5% to stakers who have been slashed or liquidated.
Existing token holders terms from their respective networks would carry over into the new network.
The 12.5% allocated for the stakedrop would be front loaded to insure the network starts with a high participation level. Something like
month 1 - 4%
month 2 - 3.5%
month 3 - 2%
month 4 - 1.5%
month 5 - 0.75%
month 6 - 0.75%
The initial supply of T2 tokens would be claimed by existing NU and KEEP token holders through a smart contract with a $0.0001 fee per token paid in ETH so that there is a nominal cost basic for the acquisition of the new tokens.
The ETH from this would be used by the DAO to seed a Uniswap T2 - ETH pool to set the T2 price to the 30 day weighted average price of the circulating KEEP and NU.
Inflation Rate: 2% annually
- 0.5% to the DAO treasury to fund partnerships
- 0.5% liquidity incentives
- 1% coverage pool
The purpose of having a very small amount of inflation is to have an ongoing source to fund the coverage pool and growth of the ecosystem over time. As the utility increases so should the token price and hence the overall pool of funds to growth the network.
It would be good to keep the flexibility to be able to merge other networks into the new network. Being able to mint new T2 tokens should require at-least a 2/3 super majority vote from stakers with some minimum threshold on participation.