Token Economics
An overview of the token allocations and economic incentive design of the DAO
Last updated
An overview of the token allocations and economic incentive design of the DAO
Last updated
The $ALGO tokens have been minted through the Aragon platform, and all the token operations and voting are done by using Aragon.
The $ALGO tokens are capped at the current total supply, and the supply currently in circulation has been given to early contributors and investors.
Total Supply: 11,000,000 $ALGO
Circulating Supply: 11,050 $ALGO (0.10% of Total)
Acquisition Pool (72%): Used to finance the acquisition of listed & private tokens
Bounty Program (15%): to remunerate our contributors on DeWork
Team (10%): for the core team members and contributors
Airdrops (5%): to incentivize events and other occasions
The allocations could be subject to change as it's still in the works as we're gearing up for our pre-sale.
Unlike many others in our industry, we don't plan to list our token in a short time frame of 18 months or less.
Some teams do this to quickly get funds, but it often ends up being a bad deal for the actual users as they usually get rug pulled by the team and investors.
Even if both mean well, we don't think it's a good idea to go public without proving ourselves first. So many projects out there are based on hype and narratives, and not actual traction. Many list their tokens without a real business plan, but with the intent of selling as soon as possible and the tokens often end up being worthless.
While it's nice to get funding fast, in the regular business world, it takes 5-10 years for a project to go public. The gap with crypto is too large to justify.
It can work well for large protocols with huge funding needs and long development horizons, but for smaller and nimbler organisations that aren't working on developing complex technologies it may not be the case.
Our $ALGO token will only be listed when we have enough traction measured by the amount of acquisitions achieved, the level of decentralization and other metrics we plan to track and share with the community.
We're not looking for a quick profit; we want to build a lasting community, so we're taking our time to make sure the liquidity event is beneficial for all our token holders.
We are planning list our tokens around 2025/2026 based on our estimates, and we're already connected with both CEX/DEX exchanges. These timelines could change based on our progress and market conditions
$ALGO tokens are currently available at the Early Backers Price of $0.35 per $ALGO token.
The prices and raised amount could be subject to change as it's still in the works as we're gearing up for our pre-sale.
The price of the $ALGO tokens will go through periodical price increases based on our progress and on the amount of $ALGO tokens we're going to be able to place through token exchanges, bounties and investments.
The only way to acquire $ALGO for the time being is through a token exchange, our bounty program, or through a direct private acquisition by contacting our team members.
Given the private nature of the $ALGO tokens, there is currently no inflationary pressure, and there's no vesting in place for the time being.
Our team is dedicating extensive hours to address this topic, recognizing that overly aggressive vesting schedules have recked havoc in our industry.
Tokens with tight vesting schedules, without adequate support from a bullish market, as we've seen in 2022, risk becoming worthless. Large inflationary pressures on token holders due to large token unlocks, if not matched by sufficient volume, have the potential to erode the token's value.
Volumes Based Vesting vs Time Based Vesting
This is one of the main reasons why we aim to incorporate vesting schedules that go beyond a simple time lock.
While having a set date for token release is beneficial, what if that release occurs during the least opportune moment for the project, such as in the midst of a bear market? What if the token lacks sufficient trading volume to uphold its price?
These questions are pivotal, prompting our decision to adopt a vesting schedule based not only on time but also on trading volumes and milestones.
By aligning our vesting schedules with a long-term perspective, we anticipate a controlled inflationary pressure. Ensuring adequate trading volume will minimize the impact on the token price, safeguarding the interests of token holders.
Therefore, we will put forward an innovative inflation model, where supply is determined by the objective of the project and vesting schedules will be determined by a sufficient level of liquidity. This paradigm will bring back control of price action back to the management team and not be so bothered by constant sell pressure.
