CoinStats - DOP Tokenomics & Governance

DOP Tokenomics & Governance

5y ago•

DOP

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An In-Depth Look at $DOP Tokenomics & Governance

With significant interest building up for our upcoming $DOP IDO on Polkastarter (21st of May at 13:30 UTC), we thought this would be a good time to do a recap on DOP tokenomics and its role in Drops governance.

Role of DOP

DOP will primarily be used as a governance token for the Drops platform, in both on-chain and off-chain voting processes.

On-Chain Voting

Due to the complexity of the protocol, on-chain voting will be split into two tokens: DOP and voting escrow DOP (veDOP).

The DOP token will directly be used for the governance of the Drops loans protocol, which will determine factors such as collateralization ratios, DOP emissions and the addition of new token markets.

Drops will also enable users to participate in “vote-boosting”, by locking up their DOP for voting escrow DOP (veDOP) — a mechanism inspired by Curve’s veCRV governance. The longer that a user locks their DOP for, the more veDOP tokens they will receive.

veDOP tokens will boost mining APY, collect pool emission and protocol fees, as well as be used for community valuation of NFT assets for use as collateral.

Off-Chain Voting

Off-chain voting will be focused on the general direction of the protocol, as well as treasury management. The use of treasury funds — primarily funded by platform fees — will be decided via off-chain voting via a weighted governance model.

Off-chain voting will distribute voting rights across the DOP, veDOP and NDR (Node Runners) tokens as follows:

DOP = 1 vote per token
veDOP = 3 votes per token
NDR = 10 votes per token.

Tokenomics

The maximum supply of DOP is 15,000,000 tokens. Here’s how they will be distributed:

25.39% allocated to investors, advisors
10% allocated to team
50.63% allocated to the community, obtainable via liquidity mining
10.5% allocated to a foundation reserve, to be used for business development, bug bounties and community incentives
1.11% allocated to bootstrapping liquidity on decentralized exchanges
2% allocated to Node Runners DAO*

*Node Runners DAO
To reward early supporters from the Node Runners community, a staking pool will be created containing 2% of the DOP supply. This will be distributed over the course of two years.