[PROPOSAL-008] Adopting veTokenomic

Summary

The proposal defines overall GuruDAO tokenomic model, veTokenomic parameters and describes the value capture process.

Background

DexGuru isn’t traditional Saas, and $GURU token isn’t a traditional protocol governance token. Instead, we want to build first of a kind, genuinely community-owned Product DAO that would develop and deliver great tools for modern web3 traders.

Traditional Saas business cash flow comes from monthly recurring subscriptions that fuel product development and marketing spending. What if we can replace recurring subscriptions with ve-Tokenomic flywheel and DAO-owned liquidity?

Proposal

ve-Tokenomic model allows us to create a long-term alignment between token holders, community, DAO, and the product. The core component of any good tokenomic is a balance between token supply (sell pressure) and token demand (buy pressure). DAO governed with vote escrowed token and controlling own liquidity can achieve perfect balance between supply and demand.

Subscription-based monetization for DexGuru product always was a part of the plan. This is how it will work with DAO and ve-tokenomic. When users purchase paid subscription plan for DexGuru analytics platform, under the hood smart contract purchases $GURU from the $GURU/$ETH pool, and transfer $GURU tokens to a vested time lock safebox in exchange for platform access. This creates constant and predictable cashflow for GuruDAO and $veGURU tokenholders. DAO controls how vesting safebox splits the profits from DexGuru between DAO treasury and $veGURU tokenholders who earn a share of the revenue that the platform pays out.

This system is showcased in the graphic below.

image

Participating in GuruDAO governance requires that an account have a balance of vote-escrowed GURU ($veGURU). $veGURU is a non-transferable ERC20 implementation, used to determine each account’s voting power.

$veGURU is a token that is issued upon the locking of $GURU tokens in vote escrow smart contract. The amount of $veGURU received in exchange for $GURU tokens is dependent on the lock period. The longer $GURU tokens are locked for, the more $veGURU received in exchange. A user’s veGURU balance decays linearly as the remaining time until the GURU unlock decreases.

veTokenomics parameters:

  • The maximum locking period: 4 years
  • The minimum locking period: 3 months
  • The locking weight: 4 years - 1:1 $veGURU/$GURU
  • veGURU token weight decreasing function: Linear
  • Token type: non-transferable ERC20

For example, a balance of 4000 GURU locked for one year provides the same amount of veGURU as 2000 GURU locked for two years, or 1000 GURU locked for four years. The voting power is equal to the amount of veGURU on a user’s balance.

Specifications

Initial Product parameters and values such as monthly subscription cost, trading pair address, profit share ratio, etc, will be defined in a different proposal.

Pros

  • veTokenomics provides a great balance of supply and demand and aligns with the proposed value capture approach.
  • DAO controls decision making on supply and demand and could find a balance
  • DAO-owned liquidity aims to maximize liquidity and improve capital efficiency and is a revenue-generating asset on its own.
  • Token holders have the ability to directly accrue their share of economic benefits.

Cons

  • A different tokenomics model maybe also applicable but it requires additional research.

Poll

https://discord.com/channels/779159507967672360/958820909991477318/968575477981790219

  • Yes
  • No
  • Abstain

0 voters

267 Likes

Can we also have data on how much the platform generates from paid subscription? Also can be other incentives applied for veGURU token holders? Such as a small discount on transaction fees occured on Dex.Guru trading terminal.

17 Likes

Someone explains more about vested cash flow, please. I need more detail about it. What is the advantage of not selling token on the first day?

3 Likes

What if the gas price is more expensive than the subscription fee doing this under the hood ? Or we planning to go multi-chain from the start to token distribution ?

1 Like

We will receive 4,000 veGurus tokens for four years locking 1000 Guru tokens, right?. :roll_eyes:
or its not this way

2 Likes

I don’t believe that the gas fee will be higher than the subscription fee. Anyway it will make the annual plan even more preferable for users. The idea of multi-chain is definitely worth considering, but I am not sure that we can launch it right away

2 Likes

Tokenomics — the study of tokens and their economic applications and implications. Tokenomics is a relatively new field: it fuses economics, cryptoeconomics, game theory and network science to create models that predict the growth of decentralized networks. Tokenomics is important to understand because it helps us to better navigate the DeFi space, build more useful applications, create better projects and attract more users.

For those who missed our last community call :arrow_heading_down:

10 Likes

a locking period is good to avoid automatic dump after airdrop, we seeing it too much, also egibility is a nice idea

Platform generates from paid subscription - zero.
Because it’s free in beta version as of now.
On the Dex.Guru trading terminal there is no transaction fees as well - only gas to respective blockchains

1 Like

Great locking of token for a period without mass dumping to hurt the project. For the subscription part could be a good idea but definitely not too pricey in order to attract more users

Is the veTokenomics parameter above fixed? maximum 4 years and minimum 3 years. what if the locking of the GURU token starts from a minimum of 1 year possible

If I understand the parallel with LP tokens correctly, the suggestion looks reasonable. Correct me if I’ve misunderstood the meaning

This proposal will help to us for balancing supply and demand factor in the future.
but this is crypto market and everything happens very fast.

interesting. will be curious to understand if we will get involved in the curve wars or get direct involved with redacted cartel’s hidden hand.

I beg to differ, maybe for the whales maybe . But for little guys with little money. It will have no effect on the project.

Actually 4 year is a huge for the Crypto Ecosystem. Everthing changes and develops so fast. 2 year is the optimal imo

4 years seems to be quite ambitious. but this tokenomic do likes like bullish and fair.Only thing is that people not sure about how subscription plan will go.

Locking plays an important role in the stability of currency prices, and for those who are willing to lock up to generate governance voting rights, they are those who can make certain suggestions for the development of the community or actively participate in it, which is different from ordinary people. should be rewarded.

There is a lock-up period, which is good for the stability of token prices, but the market changes too fast and the lock-up period is too long, which really tests people’s confidence

1 Like