First of all, we said this in the community many times and we’d like to say this again — the sole goal of building Bounce is to provide an essential component for the DeFi space to thrive.
We got a lot of suggestions from the community about our old token metrics and I admitted that there is definitely room for improvement. I apologize for this transition from old token metrics to this brand new token metrics. The way I address the issues is: The total supply of BOT will be reduced from 500,000 BOT to 220,000 BOT. If you are satisfied with this change, please keep reading. If you are not, please bounce.
New Token Distribution
The total supply of 220,000 BOT tokens will be allocated into four portions:
Daily reward distribution: 100,000 BOT
Governance vault, sales and rewards: 91,500 BOT
Early experienced governor invitation: 12000 BOT
Team: 16500 BOT
New Daily Reward Mechanism
There are tokens distributed to platform users every day based on the number of valid transactions they make during each day. The daily rewards emission schedule is as followed:
Starting from 08/27/2020 UTC 00:00, the daily reward will be 128 BOT tokens per day and will be halved every 365 days (eg., 64 BOT in the next 365 days) for the following years until the daily reward pool is depleted.
The daily reward distribution will stop when the total emission amount reaches 100,000 BOT. I hope this satisfies those who complain about inflation. In addition, the daily reward distribution mechanism and rate can be adjusted by governance voting when the governance board is live. There is the possibility of distributing some percentages of daily rewards based on the staking of LP tokens in liquidity pools in the near future.
Governance Sale and Rewards
I studied the power dynamic and I strongly suggest against only one round of governance sale. My justification is, then this platform will be in the hands of a few governors forever. I came up with a series of consecutive governance sales, which means there will be a few sales in the next three years. This potentially gives more possibilities and more engagements among holders. The sale will also help the governance board transit eventually into a DAO. So here are the details:
In the first year, the auction sale proceeds will go to the team to fund development and provide liquidity on the secondary market.
Bootstrap Auctions (finished): we auctioned 1500 BOT tokens through fixed swap auction with the ratio of 1 ETH = 6 BOT on the second day of the launch.
Governance Invitation Sale: we will auction 15000 BOT tokens through multiple sealed-bid auctions with the floor swap ratio of 1 ETH=6 BOT. Following this sale, we will provide liquidity on the market for BOT tokens.
Future Governance Sales: All funds raised from future sales will go straight to the governance vault managed by a DAO. The funding will not go to the team. The format of the sales and numbers are to be determined by the governance board. The 76500 tokens will be stored in a vault and managed by the governance board before the consecutive governance sale and they are locked for the first year. The sales in the second and third years are subject to change if the governance board votes for new proposals.
Team and Early Governors
So far, our team and our early supporters have been working to cold start Bounce. In order to fully realize our ultimate vision, our team agrees that we will eventually phase out and leave the decisions to the community and our DAO. We have kept some tokens for ourselves because we want to use them to attract more professional people to help the future of Bounce. The team tokens and early governors will be locked until the launch of the governance board and tokens will be allocated to each team member to represent each team member’s voting rights and participation in the governance. The vesting schedule is as followed: 25% unlocked during the launch of the governance board and then 25% for every four months. The locked tokens will still have voting rights in governance. We will make an announcement of our early governors in a separate blog.
I hope this works out for our community and supporters. For now, we will get back to building the product. We will keep everything as transparent as possible as we release the token burn and the governance vault address. Thanks.