IPR 0.1 - Token allocation & vesting change

TLDR

Since its first introduction in December 2022, the journey of Reform has been characterized by new experiences and a lot of preparation, resulting in a subtle modifications in the tokenomics. The proposed adjustment outlined in this proposal aims to enhance support for possible launchpad partners while ensuring token unlocks are synchronized across all stakeholders and liquidity is available for centralized and decentralized exchanges.

Proposed changes in tokenomics:

Token allocation

  • Launch Incentives
    • 1.00% to launchpads
    • 2.00% to market making
  • Liquidity pool
    • 0.20% to liquidity pool
    • 0.80% to market making

Token vesting

  • Early backers:
    • Will be vested over a 10-month daily linear vesting schedule
  • Launchpads
    • Will be vested over a 10-month daily linear vesting schedule

Authors

Core Contributors

The why of the proposal

The reason behind this proposal lies in the establishment of a vesting period for early backers, specifically those that held the old token. This proposed vesting duration aims to get further alignment with future investors and ensure a linear release of tokens for the early backers and potential launchpads during the launch phase. This adjustment, means that Reform proposes to distribute only a fraction of tokens during exchange listings post the official launch.

Another key motivation for presenting this proposal is rooted in the need to enable the Reform algorithms, then generating realized profits, and realizing reserves for token buybacks. By having for a vesting period, Reform can limit the initial token circulation, enabling algorithms to generate profits. These profits, in turn, will be used for the repurchase of tokens bought from the market.

In essence, the proposal for vesting is driven by the objective to establish a fair and progressively linear token release schedule for all participants in the token launch. A reduced token supply at launch enhances a successful launch, a crucial time that affects where the token is headed. The little initial supply allows algorithms to generate profits, making it possible for Reform to repurchase more tokens, thereby adding more liquidity into the market.

The longer explanation of the proposal

Upon the inception of the initial proposal on December 30, 2022, our core contributors operated with a different knowledge landscape than what they possess today. The framework was conceived and implemented. Throughout this journey, numerous insights were gained that were previously unknown. During this time the core contributors actively engaged in investments, outreach efforts, and establishing connections with diverse ventures.

Simultaneously, our algorithms showed exciting performance, maintaining an average of 15-25% APR in extra generated tokens/coins. In light of our engagements with various ventures and communities, a proposal emerged to refine the tokenomics and allocate tokens to potential launchpads. The community voted in favor, leading to an adjustment in the tokenomics.

Through communication with ventures and launchpads, the core contributors propose new slight changes in the tokenomics aimed at fairness and the success of our launch. These tokenomics lay the foundation for Reform’s success in the crypto landscape, aligning with our overarching goal.

Core contributors proposes for change:

Transitioning the entire airdrop of early backers to a 10-month vesting period with daily claiming. This vesting schedule promotes alignment among launchpads and early backers. It enables Reform to concentrate on achieving a successful launch and fine-tuning algorithms to make realized profits, facilitating token buybacks and replenishing the bonding contract.

In the initial proposal for tokenomics, we allocated 3% for Launch Incentives and 1% for the Liquidity Pool on a decentralized exchange (DEX). As we approach the imminent launch, it’s essential to delve into more specific details. Within this proposed plan, 1% of the initial 4% is earmarked for launchpads, subject to a 10-month vesting period. The majority, 2.8%, will facilitate market making grids and provide liquidity on centralized exchanges, while the remaining 0.2% will be dedicated to establishing the liquidity pool on a DEX. This strategic adjustment empowers us to seamlessly offer liquidity across both centralized and decentralized exchanges, concurrently supplying our partner launchpads. Any not utilized funds will be donated back to the Bonding Treasury.

In summary, these tokenomics enhancements show a transition for the early backers allocation from fully unlocked to a 10-month daily linear vesting schedule. The liquidity pool percentage is condensed to 0.2%, and the launch incentives now allocate 1% for launchpads on 10-month daily linear vesting schedule and 2.8% for market making on centralized exchanges.

Together, let’s pioneer the reformation of the market making scene!

Budget

No Budget is needed, just the input of the DAO participants.

Poll

Please vote and reply why below if you are “for” or “against” the proposal before it proceeds to vote.reformdao.com

  • For
  • Against
0 voters
17 Likes

Thank you @Aslan for this proposal as a core supporter of the dao I must recommend that the dao is heading on the right direction
With the vesting period we can maintain a sustainable price of the token after launch and stop unnecessary dumping of the token

I voted YES to this proposal

7 Likes

I have absolute trust in the team🥰

6 Likes

I like the idea, and get the reasoning behind the vesting period for early backers (holding the old token), so therefore I also voted “For”.
However, I don’t see a reward for these early backers, or did I miss something? After having been swapped once already, my new token will also take longer to “acquire”. Not that I’m planning on selling / dumping, but money has been locked for 2+ years already. So I’d love to see some reward for this loyalty, similar to staking.

2 Likes

It is a great proposal and well-aligned with the long-term vision of Reform.

2 Likes

Very interesting, well written. Thanks

3 Likes

cool. I trust you, lets hope for the best

3 Likes

Agree and this is healthy for ecosystem

2 Likes

I am a KOL and i like the token allocation and vesting schedules

1 Like

Thankyou for this brilliant insight friend !!!

1 Like

More stability in the ecosystem. For.

1 Like

Looking forward to launch! :slight_smile:

3 Likes

We have to implement for this sir, regarding sybil bot airdrop farming. I hope there should be KYC or at least connect to third party like Github, so we nee gitcoin pasport to vote.