Discussing liquidity mining as an additional distribution of GURU tokens

As the first drafts in the LBP threads show, we may not need that many tokens to provide as liquidity in the first stage of token listing.
Leaving extra tokens in the DAO treasury is not a good idea either. Because over time, Core Team and Investors tokens will be unlocked, and this can cause imbalance in the management of the entire DAO. So we need to distribute tokens using a different method. One of such methods is mining. Only I don’t mean regular mining, but liquidity mining. And here’s why.
Since we are giving fewer tokens to the liquidity pool, it will cause slippages for large investors. Large investors are necessary for us, they tend to look at a longer time frame than regular traders.
To maintain liquidity in the pool we will start mining liquidity.

For those who don’t know what it is. This is when a GURU token is added to the pool along with a second pair (e.g. ETH) and the pool gives out a liquidity token (LP) in exchange. We will create a pool for mining where we will accept these LP tokens and give out rewards in GURU tokens.
That way we will strengthen the main GURU/ETH liquidity pool from strong slippages and block the added liquidity in the mining pool.

This method has its pros and cons. Here are some of them
+++ At the beginning of mining, the price rises sharply due to the small circulation of tokens.
---- But with time the price goes down because there are more tokens in circulation.

I am still thinking over mining parameters to smooth these effects, unfortunately it all takes time and as always it is not enough.

This discussion proposal is a puzzle piece which I will try to put together in my head and present a complete picture of my vision of GuruDAO bootstrap phase tokenomics
You can find other pieces of the puzzle here and here


Thanks, that’s a good topic for discussion! We probably want to do some liquidity mining incentives after TGE. It could be pool2, bonds, or some novel model like tokemak.


I agree with the overall idea.

The goal should be maintain a decent and normal APR for LP for a long time .

If we offer some crazy high APR for LPs they will add Liquidity at first , farm the token and then dumb it. So we need to design a sustainable liquidity mining program in a way that
1.incentivize the LPs to provide for long term
2. Avoid dumping the token

do you have any experience on liquidity mining program design ?

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