T5 merge proposal

Design goals

  • Avoid token sale
  • Distribute most tokens to stakers through farming
  • Achieve a large token float on launch

Distribution

Immediately after TBTCv2 launch, a week-long concentrated farming period will start during which 15% of all supply will be distributed to parties that provide liquidity for TBTC.

After that has finished, the following events will take place:

  • Farming rewards are unlocked
  • 10% of the supply will be airdropped to current KEEP/NU holders (to avoid getting passive holders rekt)

The rest of the tokens will be distributed the following way:

  • 10% treasury
  • 10% liquidity incentives
  • 55% for KEEP/NU/T stakers. This will be done according to maclane’s proposal, the staking power of NU/KEEP will keep decreasing while the one of $T stakers will gradually increase.

Why avoid the token sale

Distributing the tokens through farming improves on many of the goals that the token sale attempts to achieve:

  • Even if the BTC gained from the token sale is transformed on TBTC, the amount of BTC converted to TBTC will be much greater compared to the sale since the risk is much lower and it doesn’t require losing capital.
  • It’s more interesting to reward everyone with $T instead of some other token because that locks them more into the protocol. Thus it’s better to hold $T on the treasury and rewards participants using that instead of BTC.
  • This will get us massive amounts converted to TBTC during the first week, which will give us TVL-based publicity and will assure everybody that the system is safe (as there’ll be a large bounty for hacking it).

Furthermore, one key demographic we are trying to attract here are bitcoiners that care about decentralization, and I believe a token sale would not be conductive to that given the general hatred on the bitcoin community towards ICOs (see all the discussion around Ethereum’s ICO).

5 Likes

I agree with this approach (i.e. farm T tokens by using the KEaNU Network to convert BTC to TBTC), rather than the Sale.

But I would not do this in 1 week. That might put the Network into a lot of stress during the starting period, I think that is too risky. It would be better to do that across 4-8 weeks at least to have a ramp up period for the network to better react.

1 Like

That would work as well, what I believe is most important is to launch the token after the farming period because that gets us a large float on the market.

2 Likes

This is by far the simplest proposal and which I like most.

These particular numbers are open to discussion but i think the mechanism are super solid.

Thanks a lot

3 Likes

Excellent proposal ! Best so far, very well done. :+1:t2:

1 Like

I think this may cause a pump dump of the circuit on native Nu and Keep.
At the same time, the sale of tokens can add new members to the network who have come on a new wave.

An even longer period can be considered

I think your right but we need to make that move an let the cards an bots fall were they fall

1 Like