From e3b6352eb8adeac94698cbf05c9bc75086f50e0c Mon Sep 17 00:00:00 2001 From: JulesCrown Date: Fri, 27 Dec 2024 15:40:35 +0100 Subject: [PATCH] tokenomics draft --- tokenomics.md | 163 ++++++++++++++++++++++++++++++++++++++++++++++++++ 1 file changed, 163 insertions(+) create mode 100644 tokenomics.md diff --git a/tokenomics.md b/tokenomics.md new file mode 100644 index 0000000..3887265 --- /dev/null +++ b/tokenomics.md @@ -0,0 +1,163 @@ +# Home of Dumplings / \$DPL Tokenomics + +## 1. Overview + +The Home of Dumplings protocol deploys AI agents that solve optimization problems for DeFi users and protocols, addressing tasks such as liquidity management and parameter tuning. The ecosystem operates through **Tasks** hosted on-chain and populations of solution programs evolved off-chain by the Optimizer Pool. + +**\$DPL** is the native token powering this ecosystem. Its primary roles include: + +1. **Payment**: Clients pay invocation or subscription fees in \$DPL. +2. **Staking and Governance**: Token holders stake \$DPL to secure the protocol, join the optimizer pool or participate in governance. +3. **Rewards**: Optimizer Pool nodes earn \$DPL for validated contributions to the evolution of programs. + +--- + +## 2. Token Supply and Distribution + +### Fixed Supply + +- **Total Supply**: \$DPL has a fixed supply (e.g., 100M tokens), minted at genesis. +- **No Inflation**: No further token minting or emission beyond the initial allocation. + +### Allocation of Supply + +1. **Uniswap V3 Liquidity Pool** + + - All of the supply is allocated to a Uniswap V3 liquidity pool over a wide price range. + - Multiple price ranges hold extra liquidity to ensure stable price discovery. + +2. **Team** + + - A vesting contract purchases a small portion (e.g., 10-15%) of the cheapest tokens from the pool right after deployment and allocates them to the team. + +3. **Treasury** + + - An NFT minting contract purchases a small portion (e.g., 5-10%) right after the vesting contract before other buyers come in. The tokens are packaged into nice-looking NFTs. + - These NFTs are sold on marketplaces like OpenSea, redeemable for tokens. The proceeds are transferred to the team multisig, forming the treasury. + +--- + +## 3. Revenue Model + +### Fee Structure + +1. **Invocation Fees** + + - Charged for AI agents evolved with synthetic data. + - Paid in \$DPL or other currencies auto-converted into \$DPL and routed to the protocol reward pools. + +2. **Subscription Fees** + + - Charged for AI agents evolved with synthetic data initially, but are continuously improved by backtesting with real data. + - Periodic payment in \$DPL or other currencies auto-converted into \$DPL and routed to the protocol reward pools. + +### Reward Allocation + +- A portion of the fees collected funds rewards for the Optimizer Pool nodes that contribute validated solutions to Tasks. +- Governance determines the exact split between: + - Optimizer Pool rewards. + - Treasury for operational funding. + - Potential staking rewards. + +--- + +## 4. Staking + +### Types of Stakers + +1. **Council Node Stakers** + + - Nodes in the Optimizer Pool stake \$DPL to become eligible for selection to the Council. + - Council members validate and vote on improved solutions to Tasks. + - **Slashing Mechanism**: If a Council member votes against the majority decision, they are penalized by slashing a portion of their staked tokens. + +2. **Investor Stakers** + + - Investors stake \$DPL to earn a share of the protocol’s revenue. + - Revenue is comprised of invocation and subscription fees, a part is distributed as staking rewards. + +### Risk Backstop + +- Stakers collectively backstop potential risks associated with the AI agents. +- If an AI agent malfunctions (e.g., outputs suboptimal or incorrect decisions due to flaws in the algorithm), affected users may be compensated via the staking pool, reducing the system’s reputational and financial risk. +- Governance defines the conditions for such compensations, ensuring fairness and transparency. + +--- + +## 5. Governance + +Voting weight is proportional to the amount of \$DPL staked. + +### Governance Mechanics + +1. **Voting Rights** + + - All stakers can participate in governance, regardless of whether they are nodes or investors. + - Proposals focus on: + - Adjusting fee parameters (e.g., invocation and subscription fees). + - Allocating Optimizer Pool rewards. + - Defining compensation rules for Risk Backstop events. + +2. **Council Randomness** + + - Optimizer Pool nodes with staked \$DPL can be selected for the Council via a verifiable random selection process. + - The Council validates and votes on improved solutions to Tasks. + +--- + +## 6. NFT-Based Early Bird Mechanism + +1. **Purpose** + + - Raise initial funding and incentivize early supporters. + +2. **Mechanics** + + - NFTs represent the right to claim a specified quantity of \$DPL at a discounted rate. + - Sold on marketplaces like OpenSea. + +3. **Redemption** + + - Upon redemption, the NFT is burned, and the holder receives their allocated \$DPL. + - Vesting or time locks may apply to align with protocol growth. + +--- + +## 7. Fee Usage and Distribution + +- **Optimizer Pool Rewards**: A fraction of collected fees funds rewards for Optimizer Pool nodes. +- **Treasury**: Supports operations, development, and marketing initiatives. +- **Stakers**: Receive a share of fees as staking rewards, subject to governance decisions. + +--- + +## 8. Launch and Go-to-Market Strategy + +### Initial Liquidity Deployment + +- Deploy a majority of \$DPL supply into Uniswap V3 pools. +- Use multiple concentrated price ranges to establish liquidity depth and facilitate market stability. + +### Early Bird NFT Sale + +- Launch a curated NFT collection for discounted \$DPL rights. +- Drive initial funding and engage early adopters. + +### Target Customers + +- Position DeFi protocols as key customers for SoLUSH’s optimization services. +- Focus marketing on showcasing cost-saving and performance-enhancing use cases. + +--- + +## 9. Conclusion + +The \$DPL tokenomics framework is designed to: + +- Provide immediate utility through payment and staking mechanisms. +- Incentivize Optimizer Pool participation via rewards for validated solutions. +- Ensure sustainable growth through fixed supply, governance, and clear fee allocation. + +This structure ensures the long-term viability and scalability of the SoLUSH ecosystem, while fostering community involvement and alignment with protocol goals. + +