After many months learning from the market and trying to adjust to its rapid speed, the Badger team has decided to release v1 of our liquidity mining launch details.
We call it V1 because it’s critical to get guidance and insight from the community around how it should be structured.
So the goal is to outline what we believe to be the best structure for the liquidity mining launch and then adjust accordingly based on your feedback. Badger DAO is more yours then it is the ops team so you should be involved in all of the major decisions pre-launch.
Important to note, there is no capital raise or sale whatsoever, everything to date has been funded personally by the founding team including development, branding, audits, marketing etc.
Also, all the details outlined aren’t simply ideas, they’ve been coded into our smart contracts and audited by a 3rd party company.
- $BADGER Total supply — 21,000,000 fixed (can’t mint more)
- $DIGG Total supply — 6250
Liquidity Mining Event
- Tokens distributed: $BADGER and $DIGG. $BADGER is the governance token of the DAO and all its products including Digg protocol. $DIGG is an elastic supply cryptocurrency pegged to the price of Bitcoin and is the 2nd product of the DAO. $DIGG’s rebasing function will start after the end of the initial liquidity mining distribution.
- Duration: 10 weeks total. 8 weeks $BADGER + 8 weeks $DIGG but $DIGG starts after week 2 of $BADGER distribution. During the overlap you can mine both tokens by staking in Sett.
- Launch date: November, day TBD
Users that deposit assets into our Sett (vault) product will be rewarded with $BADGER and $DIGG. There are no restrictions on the amount of assets to deposit with Sett or penalties for claiming/transferring $BADGER or $DIGG.
Prior to launch all token contracts and products including Sett and Digg protocol will be audited and publicly released.
The longer users stake in the Sett, the increased multiplier of $BADGER & $DIGG rewards they will receive (ie. 1x, 2x, 3x). $BADGER and $DIGG can be harvested throughout the LM event without effecting your multiplier.
Users can withdraw their assets at anytime from Sett, upon withdrawal there is a 0.5% fee and an additional 20% performance fee on yield generated.
The 6 Setts at launch are;
- Curve_sbtc_lp tokens: Compounding strategy
- Curve_renbtc_lp tokens: Compounding strategy
- Curve_tbtc_lp tokens: Compounding strategy
- Badger: Stake Badger and earn Badger
- Badger/WBTC (or renBTC) LP: Compound strategy (automatically take $BADGER rewards and inject 50% back into LP position and remaining 50% in Badger Sett for compounding returns)
- Harvest Super Sett Curve_renbtc_lp tokens: Compounding strategy
$BADGER Distribution Breakdown
- Liquidity mining: 4,830,000 $BADGER- During the 8 week period users that deposit in the Badger Sett product will earn $BADGER. The longer you stake, the increased multiplier of rewards you will receive. Also, with the Sett product having fees similar to other DeFi vaults, there will be immediate revenue to bootstrap the DAO.
- Developer mining: 3,150,000 $BADGER- Developers that build products and Sett vault strategies will earn $BADGER. The amount they earn is a reflection of how much of the DAO’s overall revenue they’re responsible for.
- DAO treasury: 7,350,000 $BADGER- It’s important that there is a DAO treasury upon launch for the greater community to decide how to allocate it. Having $BADGER tokens specifically for providing incentives to users for continuing to deposit in Sett and eventually use other Badger products, we believe is critical. To prevent any malicious actions, $BADGER treasury will be locked for 30 days post launch to ensure appropriate token distribution.
- Gitcoin: 420,000 $BADGER- Badger and Gitcoin share the same values, grow open source and the community. That’s why we are going to reward anyone that has donated to Gitcoin since inception. They are the exact community members we want in Badger DAO.
- Airdrop: 3,150,000 $BADGER- It’s critical to build the “right” community of people that share our belief. That’s why we will be retroactively rewarding people that have taken action to prove these values. We recently announced we are going to reward anyone that has donated to Gitcoin with $BADGER since inception. Coupled with this group, we will have 5% of the total supply allocated for the “early contributors program” thats for those that help us between now and launch. This ofcourse includes helping define the right liquidity mining strategy. Finally there will a large % of the airdrop allocated to users that have participated in different DeFi protocols in the last few years. More details to follow.
- Team: 2,100,000 $BADGER- The founding team will be rewarded $BADGER at every block that it’s mined through the LM event. We felt it was important to create incentives for the operations team to lead the project after launch and reward them for developing everything for pre-launch. All the tokens will be in a time-locked contract that we have no ability to touch. Tokens will be linearly released every month for 1 year. This contract can still be used for voting and if the community decides to do so, whitelist addresses for sending founder tokens can be added through a vote.
$DIGG Distribution Breakdown
- DAO treasury: 2500 $DIGG- Allocated to the DAO for the community to decide how to best utilize. Similar to $BADGER there will be a 30 day post LM launch to prevent malicious actions.
- Liquidity Mining: 2500 $DIGG- To earn $DIGG users must deposit in our Sett product. If users are already staked in Sett during the $BADGER distribution they can simply restake when $DIGG launches to earn both tokens during the appropriate timeframes. This our attempt to drive additional stickiness with the Sett product.
- Team 312.50 $DIGG- The founding team will be rewarded $DIGG at every block that it’s mined through the LM event. All the tokens will be in a time-locked contract that we have no ability to touch. Tokens will be linearly released every month for 1 year.
- Airdrop: 937.5 $DIGG- We believe most of the $DIGG airdrop allocation should be for those that step up during the early contributor program as they will be the people that will best ensure Badger aligns with community sentiment pre-launch.
Emission Schedule and New Setts
Each week the community will decide the appropriate $BADGER and $DIGG emissions to be allocated to each Sett and Super Sett. To start;
Week 1 — Total $BADGER 603,750
- renbtcCRV — 85,937 $BADGER
- sbtcCRV — 85,937 $BADGER
- tbtcCRV — 85,937 $BADGER
- Badger — 110,000 $BADGER
- Badger <>wBTC Uniswap LP — 150,000 $BADGER
- Harvest renbtc CRV —85,937 $BADGER
Our intention is to launch 3–5 new Setts during this 10 week period.
This is the teams attempt at structuring a liquidity mining event that best bootstraps the DAO, brings products to market that are valuable, rewards early contributors, launches fairly and ensures a wide distribution across community members that share in our beliefs.
We encourage any & everyone to provide feedback, suggestions, comments, insight around the details above. Our team is willing and ready to chat.
Remember as part of our “early contributor program”, those that help us get the launch and products right, will be rewarded with 5% of $BADGERs and up to 10% of $DIGGs total supply.
For additional reference please see a few of our other articles that dig deeper into how the DAO will work, our fair launch approach and introduction to Badgers products.