Announcing Bribe’s Native Token & Its Distribution
This article introduces BRIBE, the native governance token of Bribe Protocol. BRIBE represents a single voting stake in the holder’s chosen Bribe pool. In this article we explore the top-level distribution of our token and its particular use cases in a Bribe pool. Be sure to keep an eye out for more exciting news on how to become a token holder and our upcoming Liquidity Bootstrapping Pool (LBP) as we work to improve DAO participation with incentivized governance.
Bribe aims to revolutionize decentralized governance (dGov) with incentivized protocol participation. We recognize that governance markets exist, but whales are the primary beneficiaries. Bribe addresses this problem by coordinating and auctioning powerful coalitions of DAO votes. Each coalition — or Bribe pool — is directed on behalf of a highest bidder, whose bid is then distributed to voters as income. Voters are rewarded with a combination of stablecoins (from the bid) and BRIBE tokens (emissions).
Our native token, BRIBE, is an essential platform component that allows community members to participate in direct decision making for the protocol. BRIBE token staking is users’ gateway to governance and revenue-sharing, thereby representing a long-term stake in the protocol’s success. This plays out in three fundamental ways:
- BRIBE Staking: A portion of the winning bid in each protocol-specific Bribe pool is allocated to users who stake BRIBE in that pool (ie a portion of the winning bid to direct the votes in the Aave Bribe pool is allocated to users who stake BRIBE in the Aave Bribe pool). In this way, BRIBE acts as an index for all Bribe pools, offering holders a baseline of exposure to activity on the protocol. At launch — 10% of bid rewards (USDC) will accrue to BRIBE stakers.
- Emissions: BRIBE stakers will vote on the allocation of BRIBE emissions to each Bribe pool. This allocation process serves as a crucial mechanism for bootstrapping liquidity in a new Bribe pool, because additional BRIBE emissions increase the attractiveness of a pool for all participants. At launch — The Bribe DAO has not yet been implemented; as such, emissions for each Bribe pool initially (the first few months) will be set by the team.
- Bribe Pool Governance: BRIBE stakers who direct BRIBE emissions to a Bribe pool will hold voting power in that pool. Decisions such as proposal categorization, starting bids, and vetos may be made by governance of a particular Bribe pool. At launch — The Bribe DAO has not yet been implemented; initial veto decisions for each Bribe pool will be made by the underlying DAO (i.e., Aave Guardian Multisig will serve as the veto for the Aave Bribe pool)
BRIBE Token Distribution:
The pie-chart below illustrates the distribution of the BRIBE token.
Ecosystem Emissions — 50%
50% of the total token supply is designated for distribution as ecosystem emissions to incentivize participation in our network. At protocol launch, emissions will be set at ~1% of the total BRIBE supply each month. As discussed in the previous section, the exact distribution of emissions may change based on participation rates of BRIBE stakers in each Bribe pool, or based on the outcomes of Bribe DAO governance decisions.
Bribe Treasury — 10%
10% of the total token supply is designated to the Bribe Treasury, which can be unlocked for use by Bribe DAO governance.
Liquidity Bootstrapping Pool — 2.5%
2.5% of BRIBE tokens will be distributed during a Liquidity Bootstrapping Pool (LBP) event in January 2022.
Private Presale — 20.5%
20.5% of the total token supply was sold during our private presale events which raised $4 million. The average token price across two rounds (seed and strategic) was $0.18, resulting in an overall post-money valuation of $22 million. Private presale tokens come with a 2-year linear vesting schedule beginning in May 2022, with a 5% upfront unlock at TGE. Investors participating in our early fundraising round have, almost without exception, pledged to stake Aave in the Aave Bribe pool to provide initial liquidity.
Team Tokens — 14%
14% of the total token supply goes towards our all-star Bribe team, in order to support the continued growth and development of the protocol. Team tokens come with a 2-year linear vesting schedule beginning in July 2022.
Advisors — 3%
3% of the total token supply goes to our advisors for their ongoing assistance with Bribe’s growth and development. Advisors have been selected based on their expertise in various areas of platform development and include angels specializing in smart contracts and audits, web development, DAO governance, tokenomics, hiring, communications, and growth strategy. Vesting for advisors begins in May 2022, with a 5% upfront unlock at TGE.
BRIBE Use Cases:
Protocol Incentives
BRIBE token stakers are eligible for exclusive rewards when using the protocol. 10% of each bid is designated solely for stakers of BRIBE. Liquidity providers for popular trading pairs also receive a dedicated share of the bid.
Value Accrual
BRIBE is a deflationary currency. There are 100,000,000 BRIBE tokens in existence and no additional BRIBE will be minted. The supply will be reduced over time as further use cases for the token are released.
Governance — In Development
Each Bribe pool will have governance related to its associated DAO. While the particular governance processes to be implemented are still being defined, we expect that they will take at least two forms: 1. fee sharing; 2. determining starting bid amounts for proposal types. To participate in governance for a given Bribe pool, a user must direct BRIBE emissions to that pool.
Conclusion:
The introduction of the native BRIBE token achieves several important purposes for the long-term success of the Bribe protocol. BRIBE tokens incentivize community participation in the protocol, ultimately directing its expansion. Additionally, BRIBE tokens represent long-term value in the treasury, while staking BRIBE is users’ gateway to governance and revenue-sharing across the DeFi industry.
About Bribe
Bribe creates DAO infrastructure tooling to incentivize protocol participation. Depositors stake their governance tokens in the Bribe pool to earn income. Bidders borrow the staked votes to support or reject governance proposals. Bribe V1 introduces Voter Extractable Value (VEV) to coordinate and auction powerful coalitions of DAO votes. Bribe is best used as part of a well-balanced and active delegation strategy. For more information, visit:
