Authors
goodgangmaster
Abstract
This proposal aims to revise the current $BOOZE token airdrop mechanism and vesting options to better align with long-term value creation and stability within the ecosystem. The existing airdrop model presents issues, including insufficient incentives for long-term holding, risks of market instability due to token concentration among a few holders, and premature full dilution within four months. To address these, I propose new airdrop and vesting mechanisms designed to encourage sustained participation, stabilize token distribution, and prolong the gradual release of tokens to optimize benefits for the community and the project. The proposed changes introduce staggered vesting options with bonus incentives for longer commitment, providing a more structured and strategic token distribution model.
Motivation
The current token airdrop mechanism and vesting options are unlikely to serve as an effective tool for the token’s value appreciation for the following reasons:
- Lack of Vesting Incentives: The vesting periods are too short, making it likely that everyone will choose the maximum vesting option, resulting in a lack of genuine incentives for long-term holders.
- Market Stability Issues Due to Token Concentration: As the project started with NFTs rather than a DAO, sufficient consideration was not given to a tokenomics structure that would support effective DAO operations. This has led to an over-concentration of tokens in the hands of a small group, creating the risk of a market collapse if even one or two of them decide to exit immediately after TGE (Token Generation Event). The current mechanism does not have sufficient safeguards to prevent such a scenario.
- Premature Full Dilution: When considering the fully diluted value (FDV) of tokens outside community-controlled supplies (Treasury, liquidity pool), the current structure results in maximum dilution within just four months. Many advantages can be leveraged by operating with a smaller circulating supply and market cap immediately after TGE, but a four-month timeline is too short to fully exploit these benefits.
Specifications
Airdrop Mechanism
- A snapshot of eligible NFT holders will be taken after the token launch scheduled for the end of October 2024. The snapshot date will be communicated to the community after it is taken to prevent abuse of the airdrop mechanism.
- Airdrop allocation amounts will be calculated based on NFT rarity (Human 1 : Mutant 8.8 : Genesis 44.1).
- Airdrop allocation numbers will be distributed based on the chosen vesting option, with the entire vesting amount linearly distributed weekly over the selected period.
- Eligible addresses can choose a vesting option for the remaining amount.
- Airdrop-related operations will be managed by Planetarium Labs.
Vesting
- Initial Distribution:
- Genesis: 5%
- Mutant: 1%
- Human: 0%
- Vesting Options for Remaining Amounts:
- Zero Vesting: At TGE, the initial distribution is combined to make a total of 40% of the total allocation.
- 1-Year Vesting: Combined with the initial distribution to provide 80% of the total allocation. The remaining amount after the initial distribution will be linearly distributed weekly over one year.
- 2-Year Vesting with 1-Year Bonus Cliff: Provides 100% of the total allocation. The remaining amount after the initial distribution will be linearly distributed weekly over two years. After one year, 50% of the tokens burned through zero vesting and 1-year vesting options will be redistributed to those who chose the 2-year vesting option as an additional bonus.
- The penalty amount will be distributed based on the allocated amounts of each NFT (not address).
- The remaining 50% of the penalty amount will be returned to the DAO treasury for future community growth.
- The start of the vesting process for each NFT must be manually initiated through a “Vesting Execution.” This serves as a penalty for inactive holders who stop participating after purchasing the NFT.
Vesting Choices Example
Below is an example to illustrate the proposed vesting structure:
NFT Holder | NFTs (Type and Quantity) | Initial Allocation | Initial Distribution (%) | Vesting Option | Remaining Allocation | Remaining Allocation After Burning | Bonus Allocation (After 1 Year) | Total Received Amount | At TGE | After 1 Year | After 2 Years |
---|---|---|---|---|---|---|---|---|---|---|---|
Eve | Genesis (1), Mutant (1), Human (1) | 458,150 | 19,491 | 2-Year | 438,660 | 438,660 | 1,216,285 | 1,654,944 | 19,491 | 238,820 | 1,654,944 |
Peter | Genesis (1), Mutant (1), Human (1) | 458,150 | 19,491 | 1-Year | 438,660 | 350,928 | 0 | 350,928 | 19,491 | 370,418 | 350,928 |
Ethan | Genesis (1), Mutant (1), Human (1) | 458,150 | 19,491 | Zero Vesting | 438,660 | 175,464 | 0 | 175,464 | 175,464 | 194,954 | 175,464 |
Bob | Genesis (1), Mutant (1) | 449,650 | 19,491 | 1-Year | 430,160 | 344,128 | 0 | 344,128 | 19,491 | 363,618 | 344,128 |
Charlie | Genesis (3), Mutant (2), Human (30) | 1,529,150 | 57,724 | Zero Vesting | 1,471,427 | 588,571 | 0 | 588,571 | 588,571 | 646,294 | 588,571 |
Dave | Genesis (5), Mutant (1) | 1,949,050 | 94,461 | Zero Vesting | 1,854,590 | 741,836 | 0 | 741,836 | 741,836 | 836,296 | 741,836 |
- This table demonstrates how the different vesting options affect the total received amount, including potential bonuses from tokens burned through other vesting choices.
- human = 8500, mutant = 74800, genesis=374850 (apply 1: 8.8 : 44.1)