✍️ - p42: New tokeneconomics

This topic is for discussing a new token economic model.

The discussion hasn’t started yet?

so, here we are.

Note : the idea is to discuss this design for the next 10 weeks, and improve it, until we reach out to a consensus (no more new ideas, no more new critics) and then we will do a formal vote and implement them. Everything here can be discussed, debated, modified (like the %, the param, the token split, name, etc.)

1. TOKEN - Rebranding from JRT to JNT (Jarvis Network Token)

  • 12% of inflation, from 565M of JRT to 632.8M, then a token split from 632.8M down to 42M. Half of the inflation goes to Jarvis LTD to help financing future fundraising; half goes to the treasury for the same purpose.
  • veJNT ala Curve, that gives a boost + voting power, which decreases at each block during the whole locking period.

2. VALUE How Jarvis generates value?
For now we only have one working protocol, Synthereum. Synthereum v2 can capture value through:

  • trading fees; if the protocol is used a for buying and selling stablecoins, it generates value;
  • yield on the collateral; if the stablecoins are used apart from trading (money market, derivatives, payment etc.) it generates value => if stablecoins are not burnt, their collateral constantly generates yield, so the higher the circulating supply, the better!

These two mechanisms complete each other: a lot of trading activities = less yield on collateral, and a smaller trading activity = more yield on the collateral.

How the value is being distributed?

  • 90% of this value should go to the LPs, the DAO being one of these LP (more on this after).
  • 10% of this value should go to the active veJRT holders (more on this after).

About the LPs:

  • chose their leverage, from 2 to 10; the higher leverage, the higher the yield, and the higher the risks
  • earn the trading fees (90%)
  • earn 100% of the yield generated on the unused liquidity;
  • earn “leverage / 2 x Aave yield” on the used liquidity;
  • LPs can earn x2 more yield on their used liquidity if they have enough boost, provided by veJNT (the more veJNT = the bigger boost; the max boost is given by locking JNT for 4 years, and the boost decreases at every block)

Example : I am an LP with a leverage of 10 and I have deposited 10k USDC; my liquidity is used at 60% (like it is now); Aave yield on USDC is 5%. I earn 5% of the 40% unused (so 5% on 4000 USDC = 200 USDC) + 5 x 5% (leverage / 2) on the 60% used (so 25% on 6000 USDC = 1500 USDC). That’s a yield of 17% on the whole liquidity. If I want to win 2x more on the 60% used (so 1500 USDC more, that would translate to a yield of 32%, I would need to lock a certain amount of JNT for 4 years. *The yield is not exactly about the leverage, but also about the utilization of the liquidity, but for the sake of simplicity I only mentioned the leverage.

  • In that case, the veJRT has a value for me, because I need them to earn 1500 USDC more per year.

About the LM
Synthereum LPs earn escrowed JNT from the inflation. They can take 50% of the escrowed JNT now, or wait 90 days to receive 100%. The 50% penalty goes to veJNT holders, but are shared depending on the veJNT holder level (more on this after).

PLAAS LM
veJNT holders can vote on which Curve pool receive escrowed JNT from the inflation (bribes are possible).

3. ACTIVE JNT HOLDERS
veJNT mints an NFT with some attributes, like the boost, the voting power, (and many more attributes) as well as the level. Levels are earned by doing quests determined by the DAO (for ex provide liquiding in Curve, vote, etc.). The higher the level, the higher the boost and the voting power, the higher the penalty fee they earn (level 0 = no yield from penalty, level 1 = 10% of the penalty, level 2 = 20% etc.) and the higher the value capture (the 10%) they earn.

4. DELEGATION
Only active veJNT holders and LPs can capture value. Passive veJNT hodlers can delegate their boost or their voting power, or their token to active JNT holders, in exchange of sharing the yield/rewards