Tokenomics
The backbone of the ecosystem.
3 Pillars of $DUA
Token economics is the backbone of the ecosystem. A token-based economy's goal and highest priority should consistently deliver user value. Most token economies are like countries where the token plays the role of a currency. How currencies take value, are used, and circulate within a country is subject to rules and laws.
In blockchain-based economies, everything lives in code, and code is law. Our marketplace is an ecosystem where different stakeholders meet to transact. Stakeholders have different needs, preferences, and goals. We call it the "Marketplace for relationships, financial services, and identity."
A well-thought and executed Monetary Policy is crucial for the healthy economic growth around our token and ecosystem.
In our model, a percentage of the revenue collected from payments will be reserved for staking rewards, creating a system where funds circulate within the ecosystem. This revenue segment aims to keep the token reward economy flowing and ensure continued use of the token.
All stakeholders involved in this ecosystem should be aligned toward one single goal: the future growth of the DUA ecosystem. The pools below show how DUA will be distributed and to whom.
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% | Supply | # Tokens | Cliff & Vesting |
|---|---|---|---|
30% | Ecosystem & Treasury | 300,000,000 | Release after TGE with 48 monthly vesting schedule. |
20% | Governance & LP | 200,000,000 | Release after TGE with 48 monthly vesting schedule. |
15% | Team | 150,000,000 | 0% release on TGE Cliff: 18 months Vesting: 42 months |
6% | Partners | 60,000,000 | 0% release on TGE Cliff: 18 months Vesting: 42 months |
6% | Advisors | 60,000,000 | 0% release on TGE Cliff: 18 months Vesting: 42 months |
5% | Marketing, Hackathons, Events | 50,000,000 | 15% release on Public Sale Cliff: 18 months Vesting: 42 months |
11% | DUA Fund | 110,000,000 | 0% release on TGE Cliff: 6 months Vesting: 24 months |
2% | Private Sale | 20,000,000 | 0% release on TGE Cliff: 6 months Vesting: 12 months |
5% | Public Sale / Exchange / LM | 50,000,000 | 0% release on TGE |
100% | Max Supply | 1,000,000,000 | |
Below are two examples of how the reward system works based on in-app activities, the reputation formed from those activities, and the system around Ads for Businesses.
In this example is shown only the dua Love mode. Users of dua love can create and build their reputation according to daily and weekly in-app actions. Most engaged users can get rewarded with DUA tokens. These tokens can be used to pay for in-app services.
Example
Businesses can take advantage of this internal economy by showing their product and services to an audience of 5M+ users. Payments can be made in DUA. A percentage of payments collected are reserved for DUA stakers.
Example
There will always be a fixed supply of DUA - 1,000,000,000 tokens. DUA will be unlocked and released in a predetermined schedule from the token generation event. In addition to cliff periods, every pool will also have vesting schedules. Early pre-sales supporters will be able to participate in community-related decision-making in the governance pools as soon as the voting setup is set.
We believe in the power of the people. Especially in the collective intelligence and power of our token holders. To best unleash and manage that collective intelligence towards the betterment of our proposed solution and overall business structure, with the primary goal of maximizing the performance of our token, we have come up with a solution that will give more power to token holders as time goes on.
We have chosen to go with a gradual approach because, initially, our community will take some time to develop, and the real contributors will stay longer. In contrast, some members might fluctuate in the early days. In addition, our token valuation would be in price discovery mode and thus fluctuate more in the early weeks/months; therefore, we need to safeguard from a flash loan DAO economic attack while the token establishes itself.
For these reasons, the three token allocations that are planned and will be mainly used for the betterment of Dua moving forward are:
- Ecosystem & Treasury
- DUA Fund
- Governance & LP
The Governance and LP pool subsidize holders who lock their tokens in the governance pool, and those who pool provide liquidity for the selected DEX pools. The foundation will deploy a reward-yielding smart contract, which will allow for the staking of LP tokens to receive rewards from the Governance & LP pool. The other two pools will have distributions that occur more sporadically based on inputs from the executive team and the community of DUA. Decision-making to distribute these grants will happen in phases where the foundation has more power initially. As time passes, the community of remaining holders gets more influential in decision-making.
The other smart contract that the foundation will deploy is governance staking. It will allow the locking of DUA tokens in the governance pool. The smart contract will accept DUA tokens from holders with specific terms and provide them with a governance-staked token that can be used to participate in governance and claim rewards later on. With the stake, there is a month of delay between when the users decide to un-stake and until they can. This is done to delay the unlocking of tokens massively and unpredictably because the rewards provided to the users are significant for keeping the tokens out of circulation and helping build the dua ecosystem with their excellent decision-making.
We plan to use an off-chain tool to count votes and measure token holders voting power, such as Snapshot (snapshot.org), for proposals, voting, and recording users' holdings at different block heights, free of ever-increasing gas prices. In addition to voting, we will provide an open-source discussion board of the type of nodebb (nodebb.org) and a discord server for our holders to discuss. We will enable a way that only token holders can have access to our discussions and, ultimately, vote.
In phases 3 and above, we can connect Snapshot with Gnosis-Safe (https://gnosis-safe.io) and create a smart contract DAO where voting and execution are completely connected without manual interference.
The foundation makes the decisions for any allocations toward the betterment of the protocol.
At this point, an off-chain DAO tool equivalent to Snapshot described above is set up. The foundation has the power to create proposals and publish them. However, at this phase, the foundation will need a majority of voters to favor the proposal for it to pass and for the transfer to be made. The execution will happen by the foundation at this point too.
Anyone who owns a number bigger than 100,000 tokens can create a proposal for the community to vote on that would align with dua’s vision and mission and enrich its ecosystem. If such a proposal passes with a majority, the foundation has a reason to veto it, but it would have to have strong reasons to do so. Otherwise, the foundation should transfer the funds to the voted party.
Our off-chain solution is connected with a multi-sig wallet or a smart contract that holds the treasury funds. If a proposal from anyone in the community passes with the most votes, the transfer is executed using the off-chain-on-chain tech oracle that will automatically transfer funds.
Transitions between phases will be done in chunks of time that seem reasonable as we develop our concept. The particular dates will be announced after the public sale.
Last modified 7d ago