Blueberry Tokenomics and Token Generation Event (Lockdrop)
We have heard your voices requesting more information about the BLB token and how early adopters will be rewarded. First off, we want to thank you early adopters for your efforts building this community. Today, we will jump into how the BLB token is used within the Blueberry ecosystem, the token distribution, and how the development team has tried to make improvements at the token design level.
Initial Distribution
The token distribution will be as follows:
Community: 55%
Seed & Angel Investors, Contributors, Future Contributors, Advisors: 35%
Future Investor Reserve: 10% (note: will be returned to community pool if funds are not raised)
Vesting
Contributors, investors, and advisors will all be on a 3 year vesting schedule with a 1 year cliff. Any community incentives will be distributed in bdBLB, the vesting rewards token, which is a 1 year vest that can be harvested at any point. Scroll near the bottom to learn more about it.
Principles of Tokenomics Applied to BLB Design
Similarly to liquidity, token designs have an alignment problem.
Tokens need to focus on having more liquidity over time to improve user experience and accommodate larger traders. Emissions programs and loans to market makers do that and are the standard, but they usually result in unhealthy markets over time.
The BLB Token
BLB serves multiple functions within the Blueberry DAO ecosystem.
The functions of BLB are the following:
Governance
- Direction of governance token distribution
- Decisions on protocol level changes
Functionality
- Some components of the protocol will utilize BLB to unlock additional utility.
Fees that are generated from the protocol are managed by the community through governance voting. At launch it will have some default policies in place such as the following.
Blueberry DAO will use the fees generated to Make and Burn liquidity. This design serves to help the token have a larger market over time, so that larger entities can realistically access and trade the BLB token in order to participate in the protocol governance.
Buyback and Burn vs Make and Burn
DAOs control the issuance of new supply from the total supply to the circulating supply. Buyback and burn is somewhat pointless, as the prior distributed tokens are acquired back by the protocol, having no net effect on usage of the protocol or the token.
Make and Burn on the other hand helps to scale the liquidity of the token inline with the protocol’s growth. This creates a more resilient ecosystem.
Lockdrop, Token Release
There will be a special reward sent for all early adopters who went through the process during the launch of the social profiles as a thanks for joining the community. Most tokens will be distributed to users of the protocol that create ecosystem value.
In order to bootstrap the lending liquidity that powers Blueberry yield strategies, Blueberry will first launch with a “lockdrop” where lenders are awarded the first circulating bdBLB in exchange for lending alternate tokens to the lending pools. The lockdrop will be the first way to earn BLB, our governance token, in the early stages of the protocol.
The lockdrop will last 2 total months. Approximately 60 days after the first lockdrop begins, a BLB liquidity pool will be created to enable trading and vesting of bdBLB will begin.
Lockdrop Guidelines:
- Withdrawing during the 60 day launch period early will incur a penalty.
- The market for BLB will not go live until the end of the lockdrop. At this point, bdBLB will be distributed, and BLB will become tradable.
- There will be more details on specific assets that can be lent to the lockdrop on the blueberry.garden dapp before it begins and announced on Twitter.
Look out for new info on the Lockdrop on Medium and our other channels.
