Keeping it short, this post aims to explain the Tokenomics of our $DOKI token, systematically breaking down the total maximum supply of 50,000.
Initial Supply — 3500
3000 $DOKI will minted and distributed evenly to 200 people. 500 $DOKI will be used to bootstrap liquidity on Uniswap.
The initial supply is important, as it is used to earn more $DOKI, via the staking pools.
Staking via pools — 43500
Our first product, DStake will be used to distribute $DOKI via 4 different pools. The reward structure is a model of risk vs return, carefully balanced based on the amount of risk taken, and investment into Doki Doki.
The total amount distributed by each pool are halved every two weeks. This mechanism is similar to the halvening of Bitcoin, but implemented via smart contracts on Ethereum. It will take roughly 5–6 months for most of the supply (99%) to be distributed, and the idea is to release various novel DeFi products during this period, adding utility to $DOKI and creating sustained value for our community.
Pool 1 — $DOKI Pool (High Rewards)
In this pool, users stake their existing $DOKI to earn more $DOKI. Rewards start at 7250 $DOKI in the first two weeks, then halves to 3625 for the next two weeks, then 1812.5, … and continues until a total of 14500 $DOKI has been distributed. We want to reward our early supporters and those who invest in the $DOKI ecosystem by having exposure to $DOKI, so the rewards for this pool are high.
Pool 2 — $DOKI / ETH Uniswap LP Pool (Highest Rewards)
In the second pool, users stake their Uniswap LP tokens obtained from adding liquidity to $DOKI / ETH pool. Rewards start at 13500 $DOKI, halves every two weeks for a total of 27000 $DOKI. Participants in this pool are invested in the $DOKI ecosystem, as well as take on the additional risk of impermanent loss. Which is why the rewards allocated for this pool are the highest of all.
Pool 3 — $WBTC Pool (Low, but safe Rewards)
The third pool, allows users to stake $WBTC to earn some $DOKI tokens. It is designed for those who are risk averse, but nonetheless want to earn a small amount of $DOKI over time. Rewards start at just 500 $DOKI , halves every two weeks, reaching a approximate cumulative total of 1000 $DOKI after 6 months.
Pool 4— $WETH Pool (Low, but safe Rewards)
The fourth pool is essentially pool three but users stake $WETH instead of $WBTC. The cumulative distribution caps at a total of 1000 $DOKI over time.
A question which often gets asked by the community is this: “Why the need for $WBTC and $WETH pools? Why not only reward those invested in $DOKI aka pool 1 and 2?”
Our answer, summarized from Discord:
“Consider the hypothetical scenario where a risk averse whale controls 20% of the entire $WBTC pool. He will only be able to farm 7.14 DOKI per day in the first two weeks. If he continues to farm for another 6 months, maintaining a 20% share , he will only be able to farm 200 $DOKI, which is only 0.4 % of the total supply.”
Our mission is to develop a sustainable collection of stylish yet user-friendly DeFi products open and accessible for all. The small % of $DOKI allocated to the $WETH and $WBTC pool serves to keep our product open to all types of participants, including those who are risk adverse.
Here’s a sneak-preview of our staking product, DStake, which was shared in the VIP-channel already.
Vested Development Tokens — 3000
As mentioned above, there will no team allocation aka no premine in the beginning.
Instead, there will be a total of 3000 tokens, vested linearly over 6 months to fund the development of our core products. This works out to approximately 16.4 $DOKI per day, and is fully handled by the smart contracts.
What about funding for future development beyond 6 months?
As mentioned in a previous post “Designing a fair and sustainable DeFi ecosystem”, we described the feature of “TAX” which is built into the $DOKI token. It essentially functions as a burn upon selling, except the $DOKI are recycled to a treasury contract. The treasury collects $DOKI which can be used to fund anyone who wishes to build additional product and features for our open protocol. Tax (Default is zero), along with the treasury is governed entirely by the community using $DOKI.
Applying some simple math involving geometric and arithmetic sequences, we can plot the distribution of $DOKI over time. Hope this aids in the understanding of Dokinomics.