ACRE Token Distribution

The launch of the ACRE token will change the world of DeFi. The first decentralised synthetic farming protocol powered by ACRE — the native token that will alongside other tokens be used as collateral to the synthetic assets on the protocol.

Part of becoming successful is having an active working community where governance dictates the direction of the protocol by proposing and voting on new features, validators keeping the protocol running through staking, farmers and traders leveraging the technology and using it. We need a strong initial distribution and token economics model for our ACRE native token.

Initial Distribution

Arable will release 100 million tokens (10% of total supply) at genesis, where 40 million will be airdropped and 60 million will be held and locked up as a strategic reserve. The strategic reserve will primarily be used to incentivise key stakeholders to perform services for Arable.

Similar to Bitcoin’s halving, Arable’s will use a ‘’thirding’’ model, where each year following the first year, the tokens release amount will be 1/3 less. For example, in the first year, 300 million tokens, in the second year 200 million, 133 million in the third year, and so on until 1 billion tokens are released.

The newly released tokens will be released as follows:

• Liquidity Mining Incentives 45%
• Staking Rewards 25%
• Developer Vesting 25%
• Community Pool 5%

Airdrop

Arable has decided to airdrop to the following communities

• AVAX holders
• SNX holders
• PNG holders
• Lobster DAO NFT holders

We feel the four mentioned communities will be of added value for us in the long run. The total amount airdropped will be 40 million ACRE. 10% of it will be airdropped to Lobster DAO NFT holders and the remaining 90% will go to AVAX, SNX, and PNG holders using a weighted calculation. The snapshot for the former three was taken in September, while for Lobster DAO it was taken in December.

Strategic Reserve

There will be 60 million ACRE set aside used for strategic purposes. These tokens can be spent on anything that will help Arable in the long run. One thing is for sure. The strategic reserve will never be used to market sell. Part of it might be sold to investors over-the-counter but with a vesting period attached to it.

Mostly it’s a tool used to enhance long-term incentives of key stakeholders and partners, which should positively impact the project itself and thus the whole community.

Liquidity Mining Incentives

Almost half of the tokens released will go to mining incentives. We will share more on the exact process soon.

Remember that governance will get to choose which liquidity provider’s token to incentivise. Still, it may also review and adjust the liquidity mining incentives if they think they’re too high, which would redirect the tokens to the community pool and spend them later on, or develop new ways of incentivising liquidity mining. We hope they will feel encouraged enough to take action.

Staking Rewards

25% of the tokens will go towards staking rewards issued to validators and delegators who keep Arable running. We’re expecting to have 50 validators who will run a node for the launch phase. Over time the number will increase to 100–150.

ACRE will be distributed proportionally to the ACRE tokens staked. We will not be enforcing a minimum commission rate, therefore, it’s up to the validators to decide.

Developer Vesting

Approximately one-quarter of the tokens are allocated to developers who worked and will continue working on Arable. All the 225 million tokens will be locked and vested over a period of time. During that period, they will be non-transferable. The initial distribution phase is set to one year after the genesis.

Community Pool

The 5% allocated to the community pool should be used by the community to improve the ecosystem. The governance will be responsible for the most efficient usage of the proceeds.

Our internal expectations are pretty straightforward. As early as the project is launched, we’d like our community to discuss and propose ideas on how the community pool should be used to incentivise Arable’s long-term success.

Conclusion

We believe this token model has the community’s best interest at heart. The model might evolve over time if the ACRE holder feels it needs to be updated to reflect the market’s conditions.

The launch of ACRE is planned for Q1 2022.

Make sure you stay in touch on Telegram, Discord, and Twitter!