Vabble’s New Tokenomics: Supporting Decentralization and Community Security

Vabble
4 min readMay 18, 2023

--

Vabble is a pioneer in building decentralized infrastructure for film financing, distribution and investments. Our team has been tirelessly providing opportunities for filmmakers and individual investors for the past two years. Through bull and bear markets, our company has remained financially robust while consistently advancing our infrastructure to meet the needs of both the film industry and the Web3 community.

Believing in the importance of a high moral standard for our products and token, Vabble has decided to revamp its underlying tokenomics. This decision aims to foster stability, decentralization, and trust among our investors while supporting the integration of our VAB token into new product features. The new tokenomic changes include a reduction in circulating supply, a new vesting schedule, and a lower emission rate.

Why the Changes?

The modifications are a response to the increasing demand for decentralization in the Web3 space. The Vabble team is convinced that by decentralizing the ecosystem, we can establish a more sustainable and secure platform for users and investors. Decentralizing the tokenomics in a transparent manner plays a pivotal role in fostering trust between the broader Web3 community and the Vabble development and management team. This also ensures that no actions that could be detrimental to the success of the ecosystem can occur.

How Do the Changes Work?

The new tokenomics will decrease the circulating supply of VAB tokens from 1.1 billion to 800 million. This reduction is achieved by re-vesting 25% of the tokens previously unlocked, then integrating them into a new vesting schedule, which will regulate a slower release of new tokens.

Simultaneously, the emission rate of VAB tokens will be reduced from ~2.6% per month to a range of 0.62%-2%. This adjustment will help curb inflation.

The objective is for the team treasury to hold less than 30% of the supply, with a significant amount of tokens being locked up. This decision empowers the community by returning control to them. Moreover, 25% of the tokens previously unlocked are now re-locked and deposited into the VAB DAO treasury, enhancing the DAO’s stability.

Benefits of the Changes

The new tokenomics offer numerous benefits for Vabble users:

  • Increased decentralization: The reduced circulating supply and new vesting schedule make it harder for a single entity to control the VAB ecosystem. This structure ensures no team member can significantly impact the market price.
  • Lower emissions: The reduced emission rate helps deter inflation.
  • More utility: In the upcoming months, VAB tokens will have additional utilities, including staking, governance, and payment features. These new utilities will boost the demand for VAB tokens, creating new avenues for users to earn rewards.

Beyond individual wallets, a portion of the VAB supply is held in the VAB DAO Treasury and the Vabble Treasury. The VAB DAO Treasury breakdown is dedicated to EVM Chain Pools for DAO Rewards and content funding. The Vabble Treasury breakdown includes funds for development, marketing, and team expenses.

The old and ongoing vesting schedule can be viewed at: https://www.team.finance/view-coin/0xe7aE6D0C56CACaf007b7e4d312f9af686a9E9a04?name=Vabble&symbol=VAB.

As the old vesting schedule unlocks, 70% of each release will be redirected back to the VAB DAO treasury and re-vested. The remaining 30% will be allocated to the Vabble Treasury until all balances are satisfied.

Full breakdown:

VAB DAO Treasury:

  • Initial Vested Balance: 183M. (Currently unlocked. Held by Vabble Treasury. Transfer to DAO)
  • Unlocked for Polygon Beta Pool: 50M.
  • To be re-vested as old schedule unlocks: 167M. (As old schedule unlocks, tokens will be re-vested)

50M tokens will be released from the VAB DAO Treasury every 6 months. If not required for new EVM Pools, reward pool replenishment, and content funding, 50 million tokens will be re-vested every six months in the VAB DAO Treasury. This cycle may continue for years, with the possibility of 50M tokens being re-locked after each six-month period. The release and re-vesting of these tokens heavily depends on the user demand for the platform and associated pools.

Vabble Treasury Breakdown:

  • Developer Fund @ 40.1M — 15M Unlocked — 25.1M Vested.
  • Marketing Fund @ 40.1M — 15M Unlocked — 25.1M Vested.
  • Liquidity Fund @ 180M — 140M Unlocked — 40M Vested.
  • Hosting Fund @ 21.1M — 5M Unlocked — 16.1M Vested.
  • Team Fund @ 165M — 41M Unlocked — 124M Vested.

Conclusion

Vabble’s new tokenomic structure is a stride towards a more decentralized and a secure ecosystem. These changes will benefit users and investors by increasing decentralization, reducing emissions, and providing more utility for VAB tokens. As Vabble strives to create a more decentralized and secure platform, these new tokenomics are an essential step towards achieving this goal.

If you have any questions regarding the benefits of these changes. Drop us a line at hello@vabble.com

--

--