The purpose of this proposal is to agree the tokenomics for the upcoming franchise on Polygon. After spending 1 day in concepts it has been moved to Governance proposals where it will spend 2 days before going to snapshot so it can be approved by the community before the launch of farming.
We’ve learned a lot from our previous Bao and Panda launches. Using the insights from those deployments, we would like to propose the following tokenomic mechanics for Polly.
Polly will have a Max total supply of 25B tokens. There will be no pre-minted tokens, thus preventing a major price discovery of the governance token prior to the launch of its distribution. At the end of the farming and vesting period 12.5B tokens will have been distributed, allowing for future incentive programs beyond the 6 years already planned.
For every 1 token minted through farming an additional 0.5 tokens will be minted and distributed accordingly (or ⅓ of the supply). These tokens will have the same lockup % and period as farmed tokens.
- 0.1 for development costs, which may include but is not limited to paying developer wages and bounties, covering infrastructure and operational costs related to technology or development.
- 0.25 to BAO holders over a long period, exact details still to be confirmed, but likely via a BAO staking mechanism
- 0.05 for a BAO community owned vault
- 0.1 for founders - the community galaxies who made this happen.
The below schedule is based on Polygon block times, which are not fixed. Small changes in block times multiplied every block over 6 years can add up to a fairly significant change in timelines.
The below chart shows the token distribution over time. The “treasury” portion represents the 0.5 additional tokens minted and distributed as above while the Total Polly Minted represents farmed Polly tokens and the unlocked Polly Total represents the number of unlocked tokens from farming.
Polly will have the following distribution array:
Polly will unlock 25% of harvested tokens to help smooth the circulation as we will launch with nDEFI already burning tokens from day 1 and other nests and products following. The remaining 75% will be locked. Those tokens will remain locked until Polygon block 34652736, approximately 1 year from the start of farming and will unlock in a linear fashion until block 113492736, roughly 6 years from the start of farming.
Any tokens earned after that start of the unlock would continue to be proportionally added to the linear distribution. Any tokens earned after the end of the distribution would be instantly unlocked.
The proposed fees for Polly farms will borrow the same structure as Panda and include:
A 0.75% deposit fee.
A 99% slashing fee if a user withdraws in the same block.
A 50% slashing fee if a user withdraws under 1 hour.
A 25% slashing fee if a user withdraws under 1 day.
A 12% slashing fee if a user withdraws under 3 days.
An 8% slashing fee if a user withdraws under 5 days.
A 4% fee if the user withdraws after 5 days but before 2 weeks.
A 2% fee if the user withdraws after 2 weeks but before 4 weeks.
A 0.1% fee after 4 weeks.
The BAO community has always vouched for long term liquidity staked in the protocol and will continue to employ the same principles for Polly
Farms will follow the below schedule and weightings. The relative volume for each token is predictable, based on its weighting in nDEFI. Each SLP pool will be weighted based on the tokens nDEFI weighting and the available liquidity already on SushiSwap. Tokens with already very high liquidity don’t need any incentives and ones with a high nDEFI weighting but no or minimal liquidity on Sushi will need a high pool weighting. The weightings may be changed if some tokens are suffering from larger price impact than others due to attracting less liquidity than expected.
For 3 days the only farms will be SLP pools, allowing for sufficient liquidity to be added in time for farming starting with the nDEFI token.
As agreed with the community previously we decided to have no preprint for Polly and no farming on day one. This should allow the worst of the dilution to pass before incentivizing a pool with farming rewards.
|0||CVX/ETH SLP||1 404|
|0||SUSHI/ETH SLP||1 000|
|0||COMP/ETH SLP||1 284|
|0||MKR/ETH SLP||1 257|
|0||BAO/ETH SLP||1 000|
Polly Finance shall be under the management of the Bao community which will provide it with shared efforts of advancement.
While Polly Finance is subject to its own independent governance, in this deployment Polly Finance holders will be bound by the term that they cannot split off from the Bao community for a term of at least 3 years.