The idea behind distributional aspects of 1 million $ADAO tokens allocated for community through IDO
As we approach the token generation event for the AlgoDAO, we would like to explain our current thinking on how the 1 million $ADAO tokens earmarked for the IDO will be distributed, and the rationale behind the distributional mechanics employed.
It is vital to note that not all the 1% of the total supply earmarked for the IDO will be raised at TGE. As such, this will result in the smaller size of the funds raised at our IDO. Let’s delve deeper into it.
Firstly, a total of 266,667 $ADAO tokens will be made available for the IDO on our native platform. In other words, around 0.26% of the total supply will be sold at the TGE.
Fleet Elite NFT Distribution
Almost simultaneously or shortly thereafter, our Fleet Elite NFT holders will be airdropped their allocation — totalling 66,667 $ADAO tokens — directly to their wallets. Simply put, roughly 0.067% of the total supply will be distributed to our NFT-holding ambassadors and others who took part in the Fleet Elite NFT sale.
The Early Stake Booster and SIGMA farming
The remaining 666,666 $ADAO tokens will be distributed in two batches — equivalent to approximately 0.33% of the total supply each. Such amounts were selected to give notable incentives for the early adopters to rise from lower tier to higher ones. Let us explain each in turn:
- The first batch is allocated to the SIGMA pool. The SIGMA farming begins at TGE and will last for a decade to come. The earlier one stakes $ADAO tokens, the larger the farming rate is. In other words, $ADAO will be the first component of the SIGMA pool. Every next IDO/incubation will be adding more to it — in the form of their own native tokens, thus growing the size of the SIGMA pool.
- The Early Stake Booster, a program which will get 333,333 $ADAO tokens, aims to encourage pioneer stakers and rewards those contributing for the longer term. The program, i.e. the distribution, will begin approximately three months after the AlgoDAO’s IDO. Key feature is to discourage short-term selling by holding long. Only the long-term holders will get the booster distribution.
We will explain the mechanics in a finer detail separately, but the idea is simple: early $ADAO stakers have a unique chance to grow their stake. Thereby, potentially entering into the higher tiers.
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