SNS of GLDGov
Token Dynamics
The token supply of GLDGov is capped at 1 billion at genesis, with no additional tokens being minted but rather burned over time. This reduction in the token count primarily stems from several factors. Firstly, a transaction fee of 0.001 GLDGov per transaction contributes to the decrease in the token supply. Additionally, there is a cost associated with submitting a proposal that is not adopted, which necessitates the burning of 1,000 GLDGov tokens in case the proposal is rejected. Furthermore, a portion of the proto- col’s revenue is allocated to reducing the circulating supply of GLDGov tokens. These dynamics collectively contribute to the finite nature of the token supply and underscore the economic mechanisms at play within the GLDGov ecosystem.
SNS Fundraising Configuration
The fundraising model entails a targeted range of 200,000 ICP to 1,000,000 ICP. Furthermore, the SNS fundraising initiative sets a minimum participant threshold of 100 individuals. Within this framework, each participant is permitted to contribute a minimum of 8 ICP and a maximum of 200,000 ICP. These specifications outline the parameters governing the fundraising target, investment commitments, and participant engagement, thus delineating the parameters and boundaries of ICP fundraising activities within the Neuron Fund and SNS initiatives.
GLDGov Token Distribution at Genesis
The allocation of GLDGov tokens unfolds across various stakeholders and purposes.
SNS fundraising contributors: 200 million GLDGov released at month 0 with dissolving delay of 0, 3, 6, 9, ..., 24 months in 9 installments.
Founding team: 180 million GLDGov released at month 0, 3, 6, 9, ..., 24 in 9 installments with dissolving delay of 3 months.
Treasury: 620 million reserved for later usage.
The figure below shows the initial allocation of 20% to the SNS Swap via both direct participation and community fund, 18% to the founding team and 62% to the treasury.
Usage of Treasury Funds The disbursement strategy for the allocated reserve of 620 million GLDGov is delineated as follows: 75 million will be directed toward marketing, business development, strategic partnerships, and market making of the trading pairs, e.g. GLDGov/GLDT, GLDT/USDG, USDG/USDT etc, on decentralized and centralized exchanges among other purposes.
The 25 million dedicated to economic advisors will serve to incentivize and engage influential economists, economic professors, and stable coin practitioners. The 320 million community share allotted to the treasury is intended to incentivize the community for staking GLDGov. The 320 million is earmarked for distribution, with a yearly incentive of 40 million over the initial 4 years and halving every four years. Furthermore, 200 million will be reserved as ecosystem fund for cross-chain strategies and massive adoption of GLDT by DeFi applications on the major blockchains.
The staking reward of the 500 million OGY and a portion of the revenue generated by the protocol will be used to swap for GLDGov and refill the treasury.
This comprehensive breakdown elucidates the planned token allocation, release schedules, and intended usage of reserved token supplies, underscoring the strategic objectives guiding the distribution and utilization of GLDGov tokens across various facets of the ecosystem. The structure of the GLDGov tokenomics facilitates universal participation in governance, devoid of singular ownership, and enables community control through democratic and proportionate means.
Voting Power
The governance model for within the system stipulates that a minimum of 100 GLDGov tokens is required for a neuron to actively participate. Additionally, a neuron must possess a minimum of 3 months to be eligible to vote, with the maximum allowable dissolve delay being 2 years. Neurons with longer dissolve delays are eligible for a bonus multiplier of up to 2, with the multiplier increasing linearly from 1 to 2 for dissolve delays ranging from 3 months to 2 years. Moreover, neurons accrue an age bonus multiplier ranging from 1 to 1.5 for ages spanning from 0 to 2 years. For instance, a neuron with a dissolve delay set at 2 years and an age of 2 years would yield a multiplier of 2* 1.5, resulting in a total multiplier of 3.
This intricately designed governance framework underscores the nuanced mechanisms governing the voting power and multipliers associated with neurons, thereby ensuring a balanced and weighted participatory structure within the ecosystem. The figure above shows that the community owns more voting power than the developer team and thereby ensures a decentralization governance.
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