$SOUL for the People

6 min readJan 11, 2024

A breakdown of the distribution and tokenomics of $SOUL and the important role it will play in the development of Migaloo’s economy and the wider ecosystem.

More often than not DeFi is a soulless endeavour. Funded by VCs and designed to drum up liquidity for them to empty their bags on retail. BackBone Labs is creating a paradigm shift to change this and put the community first.

Introduction
BackBone Labs Products
Ecosystem Challenges
GraveDigger
Tokenomics
Staking and Voting
Token Distribution
Claim Drop Details
About the Team

Introduction

In the dynamic realm of DeFi and NFTs, Backbone Labs stands at the forefront, delivering cutting-edge solutions tailored to the evolving landscapes of decentralised finance and non-fungible tokens with the community at the centre of everything. BackBone Labs offers a diverse product suite that spans across multiple blockchains and ecosystems providing various DeFi applications for people to utilise, ensuring seamless access and participation in decentralised financial services that aim to bring more power to the communities involved.

The BackBone Labs products that enable our NFT-DEFI strategy:

The GraveDigger-
A liquid staking platform designed to seed liquidity incentives to LP providers and shares 100% of the yield with the community
Necropolis-
An NFT marketplace listing the best, most creative and DeFi-friendly NFTs
Necromancer-
NFT launchpad, allowing teams to easily and seamlessly launch their unique collections into the Cosmos
The Crypt-
Allows NFT holders to stake their NFTs and receive real yield provided by The GraveDigger
The Mausoleum-
Coming soon. Will allow users to stake $SOUL and earn yield

Ecosystem Challenges

Since the dawn of time liquidity has been controlled by VCs and profits have been extracted from the hands of the community and dumped in order to fill the pockets of a few whilst others that aren’t insiders are left to fight over the remaining scraps. BackBone Labs is aiming to solve this by creating self-sustaining mechanisms allowing for perpetual incentives on LST liquidity pairs, coupling it with NFTs and unique staking token mechanisms.

Gravedigger

To fully understand the tokenomics and value accrual of $SOUL we first need at least a basic understanding of how The GraveDigger works.

The GraveDigger is a multi-chain liquid staking platform. Like other LST platforms, it allows users to earn staking rewards whilst also being able to use that capital within various DeFi protocols. Having the benefit of receiving auto-compounding staking rewards and being able to use those staked tokens for further DeFi opportunities is vital for any growing ecosystem.

GraveDiggers Fees

The GraveDigger has a transparent fee structure, ensuring that users are aware of the costs associated with using the platform:

0% Deposit Fee
0% Withdrawal Fee
10% Performance Fee-
The team keeps none of these fees. All are redistributed back to the community

$SOUL Tokenomics

Max Supply: 10,000,000
Team Vesting Period: Team tokens are subjected to 2 years linear vesting
Inflation: 0%

Based on our understanding of the Gravedigger LST mechanisms we can now explore more about the $SOUL and its value in the ecosystem.

As discussed above, the GraveDigger’s 10% performance fee is distributed back to the community. The 10% is split 3 ways:

40% of all GraveDiggers go to SOUL stakers
30% of each GraveDigger is shared with their managing NFT community
30% to LP providers*

To reiterate, the team takes nothing from the fees. Everything is 100% distributed to the community and users of BBL products.

Staking and Voting

$SOUL staking will be live on ‘The Mausoleum’

The staking of $SOUL will be available on the Migaloo chain made possible by TFL’s Enterprise Protocol. SOUL stakers will receive 40% of all fees generated by the gravedigger to incentivise staking. Note that the staking rewards are provided from real yield. Rewards do not come from token inflation. This unique approach increases the sustainability of the protocol and its token.

$SOUL stakers will also have voting power over the Mausoleum. Voters will be able to vote on a variety of propositions including where the yield of the GraveDigger goes.

The $SOUL token will also have its own GraveDigger live on Migaloo, allowing users to liquid stake their $SOUL, compound rewards and unlock new DeFi yield opportunities.

Token Distribution

$SOUL is to be distributed as far and wide as possible, making the airdrop as fair as possible and allowing as many people as possible to get $SOUL.

Multiple Snapshots will be taken over a period of time. This allows for a fairer airdrop. People participating over a greater period of time receive a higher airdrop to those participating once just to farm the airdrop. This style of airdrop favours active community members.

50% Soul Drop
An airdrop for ecosystem participants.
15% Soul Foundation
2/3 of the foundation’s allocation (10% of the total supply) will be used in a public sale allowing users to buy the token fairly.
15% Team
Team tokens are subjected to 2 years of linear vesting block by block.
10% Protocol Liquidity
This 10% will be broken down and split across multiple LPs. Liquidity will be seeded on the WhiteWhale DEX:
-30% for a SOUL/WHALE LP
-20% to provide initial liquidity to a bSOUL/SOUL LP
-50% remaining will seed further pools over the next year when and where they are required
10% Sail Chain Drop
Migaloo Zone, Terra, Chihuahua, Osmosis (Sail program Chains only. Minimum of $250 value)

Claim Drop Details

*The Claim drop includes:

LION DAO Skeleton trait NFTs
Skeleton traited GPs
Galactic Mining Club Skeleton trait

**Users must Provide a bAsset LP on the WW DEX to be eligible for this part of the claim drop. Kujira users must provide bAssets liquidity on BOW

***A list of chains that the selected validators provide their services on:

NFTSwitch:
ANDROMEDA | CHIHUAHUA | MARS | MIGALOO |STARGAZE | TERRA | ORAI | OSMOSIS
PFC:
CHIHUAHUA | COMDEX | INJECTIVE | KUJIRA | MARS | MIGALOO | STRIDE | TERRA | STARGAZE | ANDROMEDA | ORAI
WhiteWhale:
CHIHUAHUA | COMDEX | INJECTIVE | JUNO | MARS | TERRA | OSMOSIS| ORAI

Any chains wishing to participate in our system are encouraged to reach out to us. In doing so, those specific chains and communities will be eligible for inclusion in the SOUL airdrop.

For those seeking additional details, feel free to explore the comprehensive ‘Eligibility Airdrop Guide’ prepared by @rob_inwoods.

About the Team

BackBone Labs is a community-driven project that was raised from the ashes in the aftermath of the Terra Classic Collapse.

These individuals are the unsung heroes who navigate the treacherous waters of the DeFi landscape. They bring experience, expertise, and a shared vision to the table. These key figures are the compass that keeps the project on course, even as the world of DeFi is known for its volatility and unpredictability.

These individuals not only contribute to the development of the BackBone Labs platform but also foster trust, transparency, and innovation within the community.