Tokenomics Update
Hey SpiritSquad! Firstly, thanks for being such a superb community. We are really enjoying building with you guys, and are incredibly excited thinking about what the future holds for this project. Although most of you probably already know, we are very proud to announce that our MixBytes audit is out and clean!
Preface
The tokenomics presented below are merely suggestions from the team. If the DAO decides to deviate from these tokenomics, the SPIRIT max supply, emissions schedule, etc., will be subject to change.
Let’s dive into it!
What Are We Changing?
- Farming emphasized — Farming has been emphasized in this new model. A larger percentage of the allocation will go to farming now. A jump from 60% to more than 80% (see below). This will help continually drive incentives for LPs longterm on SpiritSwap. We want to maintain our competitive edge on the farming front. As mentioned above, these are subject to change at the discretion of the DAO.
- Repurposing funds to the DAO — We are moving toward a DAO and need to fund it. Until the DAO is set up, emissions will continue accumulating in the Dev Wallet. When the DAO is created, we will transfer accumulated emissions from the dev wallet to the DAO Treasury, and redirect development emissions to the DAO Treasury as well.
- No more airdrops — Future airdrops will be decided on by the DAO. So far, ~25 million SPIRIT tokens have been airdropped. The team will no longer conduct airdrops, and will leave this to the DAO’s future discretion.
Let’s Dig Into The New Numbers…
Original Tokenomics
Total Supply = 1,000,000,000 SPIRIT
- Farming: 60%
- Development: 10%
- Airdrop: 10%
- Ecosystem: 20%
Adjusted Tokenomics
Total Supply = 1,000,000,000 SPIRIT
- Farming: 81.82% (↑)
- Development: 7.50% (↓)
- Airdrop: 2.50% (↓) (DAO can increase this)
- DAO: 8.18% (↓)
How About Some Visuals?
Take a look at the figures below to get a good idea of the movement of SPIRIT tokens over the next few years.
Figure 1. This table details the monthly movements of the SPIRIT tokens like the emissions rates, circulating supply, vesting schedules, and block times.
As you can see, we set the Dev Fund on a vesting schedule, meaning it will unlock over a period of time. *Cue MC Hammer’s Can’t Touch This*
The Dev Fund vesting will mainly be used to compensate co-founders as well as the legal team, bring in valuable new team members with token equity, and for any additional expenses that swap fees cannot cover.
Swap fees? Aren’t we using the swap fees to buy back and then burn SPIRIT?
Yes, we are currently doing that, but after long discussion have come to the conclusion that it is in the best interest of the project to turn this off soon. We have written an article (here) to explain the reasons behind this choice more in depth. Keep in mind, eventually these swap fees will go to inSPIRIT holders.
Extra Visuals
Figure 2. The total emission rates decrease as the circulating supply increases over time.
In Conclusion
A bit has changed, but as we mentioned above, all of this is adjustable by the DAO. The DAO will be able to vote on emissions, supply, etc., effectively shaping the future of SpiritSwap.
Follow SpiritSwap on Medium and other channels to keep up to date with the latest news!
Medium: spiritswap.medium.com
Discord: discord.gg/spiritswap
Twitter: twitter.com/Spirit_Swap
Telegram channel: t.me/Spirit_Swap
Telegram group: t.me/SpiritSwap
Merch: spiritswap.store
