This article focuses on the mechanics and valuation of the DAO and treasury, and the tokenomics for $GLXY, our governance token. We will unveil the play-to-earn side of ASTRALS through $SHARD, our in-game currency, in a future article.
Overview
The Galaxy DAO will manage the Galaxy Treasury on a 1 $GLXY = 1 Vote basis. The mission of the DAO is to “Bridge the Gap between Solana and the Universe”, with the aim to incubate projects that are building innovative technologies, commercializing outer space, and developing STEM (science, technology, engineering, and mathematics) programs. Speakers will be brought in to pitch their ideas in DAO Conferences, and partnerships will be built to add value to the DAO. Moreover, the DAO will be used for elections and other community events. ASTRALS NFT holders can mine $GLXY by staking their ASTRAL NFT and complete quests. This process allows for holders to be rewarded proportional to the time their NFT is staked, while giving them the freedom to monetize that time staked by selling their $GLXY on the secondary market.
DAO Structure and Mechanics
Proposals will be able to be submitted by and voted upon by any holder that holds a $GLXY token. The DAO then follows a permissioned relative majority structure where elected leaders must endorse a proposal for a proposal to move to the voting stage. This voting structure overcomes the common limitation of a DAO, which is the lack of a centralized figure that can take responsibility for the organization’s decision.
As such, one of the first activities of the DAO will be to elect leaders from the community to lead teams in charge of alpha, design, marketing, governance, community, and development. Additional teams can be proposed and voted on as demanded by the community. Furthermore, a president who will oversee these teams will be elected. The president would also be responsible for communicating each team’s activities on a regular basis to the community. Any elected leader can be voted out of their position at any time. Each leader would be responsible for contacting the project’s founders to veto illegal or otherwise problematic proposals that have already moved to the voting stage.
Once a proposal is endorsed by one of these elected leaders, the relative majority vote will be used to pass/fail a given proposal. 1 $GLXY = 1 Vote. Systems that have used this type of voting structure include MetaCartel Ventures, Raid Guild, and DAOhaus. We will also implement an early voting mechanic so that proposals can be passed instantly upon having 60% of the total circulating supply having been used to vote on any given proposal.
Initial Treasury Valuation
The treasury will begin with 6500 SOL (currently valued at $617,678 USD) and $1.5M USD. Furthermore, it will receive 25% of the royalties (8%) from secondary sales. The total trading volume in Solana and USD for the top Solana NFT collections include the Degen Ape Academy (1,080,000 SOL), Solana Monkey Business (847,440 SOL), Aurory (586,380 SOL), Shadowy Super Coder (254,200 SOL), Thugbirdz (144,190 SOL), Cataline Whale Mixer (76,280 SOL), and Boryoku Dragonz (75,490 SOL). With the backers that we have, we expect that our project will be among some of the highest sought-after on the market. We expect to reach a trading volume of at least 200,000 SOL, of which 4000 SOL will go to the DAO (currently valued at $380,216 USD).
As such, even without considering the potential for Treasury appreciation or depreciation through DAO activities, we expect that the Treasury will be valued at approximately $2.5M USD initially. We expect that this valuation will establish a baseline for the circulating market cap of $GLXY once it is listed on DexLabs and Raydium and is available for trading.
Scaling Treasury Inflows
Once the treasury is live, the community may wish to increase the value of the treasury. Possible monetization strategies include but are not limited to: 1) the licensing of the ASTRALS name, artistic assets, and lore to third parties (i.e. game studios), 2) merchandising opportunities, 3) NFT/crypto purchases and sales, 4) marketing fees from other organizations, and 5) microtransactions from the play-to-earn ASTRALS game that will be launched in Q2-Q3 2022.
Token Distribution
The distribution of 300M $GLXY will take place over five years to encourage long-term holding of ASTRALS and to offer plenty of opportunities for individuals to mine a share of $GLXY.
A breakdown of the vesting schedule can be found here.
Specific Distribution Details
Community (64%). $GLXY allocated to the community will either be airdropped to holders during special events or be distributed through our stake-to-mine model. All that one needs to do to start mining $GLXY is to stake their ASTRALS NFTs on our staking platform and assign them to the main quest, “Protect Your Galaxy”, which distributes $GLXY into a virtual vault every minute. This $GLXY can be claimed at any time.
Our staking platform has been built using next-generation staking technology developed by the Mekka Froggo Team. This staking mechanism does not require holders to relinquish their ASTRALS NFTs from their wallet, nor lock them in the staking platform for any duration of time. This allows holders to keep their NFTs liquid, and it avoids many of the wallet integration and network congestion issues when staking and unstaking your NFT. Furthermore, it reduces staking fees to 0.
We plan to airdrop 8M tokens over the course of the five years of distribution, with 1 million $GLXY distributed to ASTRALS NFT holders on launch day. We have also allocated 4M tokens for special storyline quests. 64.45564 $GLXY will be distributed every minute split among all ASTRALS that are staked.
Private Sale (16%). $GLXY tokens will be sold to private investors to generate $3M in funding. This will provide $1.5M in USDC for the liquidity pool as well as to seed the Galaxy Treasury with $1.5M. Edit: originally this was 15% and public IDO was 1%, but after speaking with our lawyers, we found it was difficult to make an IDO work in the way that we intended. As such, that 1% was reallocated to strategic private investors.
Liquidity (5%). 15M $GLXY and $1.5M USDC will be allocated to the liquidity pool on Raydium, which will be unlocked linearly over 24 months. The initial price of $GLXY will be set at $0.100.
Founders (12.7%). This allocation is an incentive for the team to continue to work hard in order to further develop the project and increase the value of the Galaxy Treasury. There will be a six-month window before token unlocks for the team happen in order to incentivize the team to work hard even after mint and then get rewarded.
Marketing (2.3%). These tokens will be used to list on exchanges, as well as to incentivize the formation of partnerships with influencers, projects and companies that will increase the value of the Galaxy Treasury.
About ASTRALS
ASTRALS is an NFT project with stake-to-mine mechanics and a primary focus on building an effective DAO. Our mission is to create a rich and rewarding experience for our community and to allow our holders to play a pivotal role in pushing the boundaries of what is possible with blockchain technology. We hope that you may join us on our journey to the stars and beyond.
Connect with ASTRALS
Twitter: https://twitter.com/Astrals_NFT
Instagram: https://www.instagram.com/astrals_nft/
Discord: https://discord.gg/astralsnft
Artist Instagram: https://www.instagram.com/damien_guimoneau/
Loremaster Website: http://www.leegingold.com/
