Jan 11, 2022
Bank Of Cronos Tokenomics: Token Allocation
A Fair Launch: BOC Tokens
Bank Of Cronos allocated BOC is to be distributed via our Fair Launch through our Initial Public NFT Offering (IPNO). In the IPNO, early community members are given the opportunity to receive an NFT designed for the protocol by our Founding Team. Holders of these NFTs will be airdropped 10, 100 or 1000 BOC tokens at launch, depending on which NFT they minted and secured.
After the IPNO closes, those who have minted an NFT are not required to take further action. They will be airdropped their share of tokens based on the NFT they hold. By minting any one of our 3 Tiers of NFTs you are funding the liquidity pool, LP, and subsequently bootstrapping Bank Of Cronos. Half of the IPNO proceeds will be used as the starting treasury balance and the other half for the initial USDC liquidity pool. We also expect the NFTs to be valuable indicators of “Knighted Status” later on as our development progresses. Please note: the address(es) used to mint your NFT will be the address(es) the Airdrop(s) is/are sent to.
The IPNO is a critical mechanism for ensuring that Bank Of CronosDAO can launch successfully. They enable the protocol to bootstrap its treasury and initial liquidity pool. They also allow for the initial distribution of tokens to be distributed as fairly as possible across early participants in the community.
Aligning long-term incentives: pBOC Allocations
Bank Of CronosDAO will also distribute a number of pBOC to team members and potential investors who can help this protocol become a success in the long-term.
The pBOC token is not the same as a BOC token; there are no underlying USD stablecoins locked in the treasury to underpin the distributed pBOC supply. USDC or DAI will not automatically be delivered to the treasury on behalf of pBOC holders when they are redeemed. To redeem pBOC, holders will be responsible for delivering 1 USDC or DAI to the treasury themselves.
For Reference: see initial allocations of pKlima (on Polygon) and pOHM (on Ethereum).
A maximum of 300,000 BOC tokens will be allocated to the Initial Public NFT Offering participants. To ensure that IPNO investors are not diluted by pBOC allocations, there will be a maximum supply rate to cap the percentage of total supply that can be redeemed by pBOC holders.
Each pBOC vester group, for example the Bank Of Cronos founding team, will be assigned a maximum supply rate cap. For example, the Bank of Cronos founding team will have a supply rate cap of 10% meaning at initial launch they will only be allowed to redeem ~30,000 pBOC (assuming~ 300,000 BOC airdrop + initial liquidity pool) so that their supply redeemed is at most 10% of total BOC supply.
Cumulatively, all of the stakeholder groups (founding team+ investors) can never own more than 16% of total BOC supply.
- Founding Group: 10m pBOC, and 10% supply share cap
- Investors: 2m pBOC, and 2% supply share cap
- OlympusDAO: 4m pBOC, and 4% supply share
- Bank Of Cronos DAO community: 10m pBOC and 10% supply share cap
As always, the “Exercise pBOC” contract and address will be available to the public on the Cronos chain explorer with the 5 above “Set Terms” transaction specifications.
There are a also number benefits for utilizing this mechanism that we wish to highlight:
- Supply-based vesting means that large volumes of pBOC cannot be quickly redeemed and sold into the market at any given time, instead pBOC holders will incrementally be able to convert to BOC as supply grows.
- This approach aligns the incentives between partners, the community and the DAO itself, as the only way pBOC holders can fully vest and secure their BOC allocation is if the protocol has long-term growth and success.
- For holders, it only makes sense to redeem pBOC when BOC is above intrinsic value as minute growth reduces the incentive to redeem pBOC, and reduces the risk of a sell-off during times of contraction.
The distribution of pBOC, and the supply based vesting, has been modelled based on OlympusDAO’s pOHM.
Authored By: NewageSage
Follow Us
LEGAL DISCLAIMERS
Legal Disclaimers
The information provided in this Medium Post pertaining to the BOC,
Inc. (“Bank Of Cronos” or the “Company”), its crypto-assets, business assets,
strategy, and operations, is for general informational purposes only and is not
a formal offer to sell or a solicitation of an offer to buy any securities,
options, futures, or other derivatives related to securities in any
jurisdiction and its content is not prescribed by securities laws. Information
contained in this Medium Post should not be relied upon as advice to buy or
sell or hold such securities or as an offer to sell such securities. This
Medium Post does not take into account nor does it provide any tax, legal or
investment advice or opinion regarding the specific investment objectives or
financial situation of any person. BOC and its agents, advisors,
directors, officers, employees and shareholders make no representation or
warranties, expressed or implied, as to the accuracy of such information and BOC expressly disclaims any and all liability that may be based on such information
or errors or omissions thereof. BOC reserves the right to amend or
replace the information contained herein, in part or entirely, at any time, and
undertakes no obligation to provide the recipient with access to the amended
information or to notify the recipient thereof. The information contained in
this Medium Post supersedes any prior Medium Post or conversation concerning
the same, similar or related information. Any information, representations or
statements not contained herein shall not be relied upon for any purpose.
Neither BOC nor any of its representatives shall have any liability
whatsoever, under contract, tort, trust or otherwise, to you or any person
resulting from the use of the information in this Medium Post by you or any of
your representatives or for omissions from the information in this Medium Post.
Additionally, the Company undertakes no obligation to comment on the
expectations of, or statements made by, third parties in respect of the matters
discussed in this Medium Post.
