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LevX
Motivation
With the upcoming launch of levx.io, we'd need to bring a new tokenomics that'll incentivize those who contribute to the protocol by staking their NFTs or voting for those. Giving rewards is the best onboarding strategy in DeFi/NFT space and we'll do it to create a hype around our platform in NFT space, which is getting bigger and bigger.
Specficiation
Inflation
Since levx.io protocol is a soft fork of Curve finance, we'll follow a similar inflation model.
LEVX follows the linear inflation schedule below. The inflation is reduced by 2^(1/4) each year. Each time the inflation reduces, a new mining epoch starts.
https://i.imgur.com/NKy1Cle.png
Current total supply of LEVX is 33,333 tokens, which is 11.111% of the eventual total supply of 300,000 tokens. The initial inflation rate which supports the above inflation schedule is 42,428 LEVX. All of the inflation is distributed to NFT stakers, according to measurements taken by the gauges. During the first year, the approximate inflow into circulating supply is 116.24 LEVX per day. Practically in 33 years 99.999% will be supplied but it'll take 305 years to eventually inflate the whole amount.
NFT Gauges
Inflation is directed to users who stake NFTs or vote for them within the protocol. This usage is measured via
NFTGauge
contracts. Each NFT collection has an individual NFT gauge. The
GaugeController
contract maintains a list of gauges and their types, with the weights of each gauge and type.
To measure liquidity over time, the user stakes their NFTs into the NFT gauge. Token rates which the gauge is getting depends on current inflation rate, gauge weight, and gauge type weights. Each NFT receives a share of newly minted LEVX proportional to the amount of veLEVX voted. Among them, 10% of the tokens go to the owner of the NFT and the rest to the voters.
Gauge Weight Voting
Users can allocate their veLEVX towards one or more NFT gauges by splitting the percentages. Gauges receive a fraction of newly minted LEVX tokens proportional to how much veLEVX the gauge is allocated. Each user with a veLEVX balance can change their preference at any time.
When a user applies a new vote, it gets applied at the start of the next epoch week. The weight vote for any one gauge cannot be changed more often than once in 10 days.
Treasury Allocation
For every newly minted LEVX, additional 10% can be minted for the treasury. Since for initial supply 33,333, 10% won't be allocated for the treasury, the total amount that can be minted for it is 22,424 LEVX. This fund will be used for operating the DAO: hiring new people, conducting marketing campaigns, supporting contributors, etc.
Reimbursing LEVX for the dictator
Due to the accident that happened to me, he lost all his ETH, ERC-20 assets. For other assets, there's no way to restore them but OH-GEEZ and LEVX could be minted if the DAO agrees to it. The amount of stolen LEVX was 849 and 9.97 OH-GEEZ. Since 1 OH-GEEZ can be converted to 10 LEVX, I propose to mint 849+99.7=948.7 LEVX in total to my address(0x612ef87bfcd858687160294b0effaca0cba342e2). I won't sell those tokens but will add it to the LP to get more voting power(veLEVX).
Conclusion
Now is the real beginning of the DAO as a protocol, not a social community. I believe we could implant the success DNA of Curve finance into us by introducing this new tokenomics. Details can be changed due to your opinion, so let me know your thoughts.