Bribe Plans Token Distribution through Liquidity Bootstrapping Pool on Copperlaunch
Bribe Protocol is creating DAO infrastructure tooling to incentivize governance participation, thus tackling the problem of voter apathy in DeFi. With our mainnet launch fast approaching, we are pleased to announce that our native token, BRIBE, will be available for purchase via a liquidity bootstrapping pool distribution method on January 25, 2022.
To help realize our goal of broadening participation in decentralized governance (dGov), we are taking a fair launch approach to distributing BRIBE via Copperlaunch, which leverages Balancer’s Liquidity Bootstrapping Pool (LBP) solution to ensure fair price discovery.
Liquidity Bootstrapping Pools (LBPs) Explainer
LBPs allow for the creation of liquidity pools between two tokens (the project’s token and the paired collateral token) that leverage dynamic weight-shifting AMMs. The weighting is first in favor of the project’s token, and then gradually “flipped” in favor of the paired token as the LBP approaches its end.
Technically, LBPs are smart pools — because they employ adjustable weighting mechanisms. LBPs work by setting the token sale parameters, which include duration of the LBP, number of tokens made available in the pool, and initial and final weightings.
Initial weightings for Bribe’s LBP are set at 98:2 in favor of the BRIBE token (i.e. BRIBE:USDC = 98:2) and then gradually shifts in favor of the paired token, with a final weighting of 50:50 (i.e. BRIBE:USDC = 50:50).
There are four key advantages to the LBP token distribution method, as outlined by Copper below:
Price discovery: The price of the token starts high and drops based on a pre-configured price decay curve that can be resisted by buying pressure from auction participants. Anyone can buy into or sell out of the auction freely at any time, so price truly regulates itself.
Open and permissionless participation: Freely launch tokens and participate in auctions. No whitelists, hard caps, or listing requirements. There is no minimum or maximum allocation. Auction participants choose how much they want to buy.
Fair distribution: Token Launch Auctions (TLAs) flip the first-come-first-serve launch model on its head and change token launches from being a race where the first bot in or the transaction with the highest gas fee wins. Get your token into the hands of as many people as possible in a fair way that disincentivizes front-runners and whales getting better rates than smaller participants.
Capital efficiency: The initial price of the token being auctioned can be magnified by up to 99 times relative to the collateral deposited along with it. Additionally, the collateral can be fully retrieved at the end of the auction unless the auctioned tokens already exist outside of the TLA and someone decides to sell into the auction.
At 2.5% circulating supply on the first day, with a starting price of $8.19, this equates to a starting market cap of approximately $20.5M ($819M FDV). The ending price is determined by the demand for BRIBE tokens and the prices at which buyers chose to purchase. If no BRIBE is purchased during the LBP, the ending token price would be $0.15 (the same as our earliest seed round token price), equating to a final market cap of approximately $375,000 ($15M FDV).
After the LBP ends, the team will apply ⅓ of the raised funds and tokens from the treasury to seed a liquidity pool on SushiSwap for BRIBE-ETH at the final price. Any unsold BRIBE tokens will be transferred to the treasury.
BRIBE token LBP parameters:
- Total supply of BRIBE token — 100,000,000 BRIBE
- Token pair on Balancer’s smart pool — BRIBE/USDC
- Initial BRIBE token balance — 2.5M (2.5% of total supply)
- Initial paired token balance — 370,000 USDC
- Initial weightings — BRIBE 98%: USDC 2%
- Final weightings — BRIBE 50%: USDC 50%
- LBP starting price — $8.19
- Swap fee — 2%
Revisiting BRIBE Token Distribution
Our native token, BRIBE, is an essential platform component that allows community members to direct decision making for the protocol. BRIBE represents a long-term stake in the protocol’s success, as BRIBE tokens offer three primary use cases: staker rewards, emissions, and governance (in development).
The pie-chart below illustrates the distribution of the BRIBE token.
Private presale tokens come with a 2-year linear vesting schedule beginning in April 2022, while advisors and team tokens come with a 2-year linear vesting schedule beginning in May 2022 and July 2022, respectively.
Please note, BRIBE tokens purchased through the LBP represent the first and only opportunity for the public to gain exposure to the BRIBE token, other than through protocol emissions or via an exchange.
You can read more about Bribe’s Tokenomics here.
How to participate in the BRIBE token LBP on Copperlaunch
- Connect a Web 3-enabled cryptocurrency wallet to CopperLaunch such as Metamask, Ledger, Trust, Argent, Rainbow, ImToken etc.
- Note that this wallet will need to contain some ETH to pay transaction fees and USDC in order to purchase BRIBE during the LBP
- Click the official LBP link which will be announced on the launch date
- After connecting your wallet, use the “Swap” Menu to the right and select how much BRIBE you would like to purchase using USDC
- Click “Approve” and wait for confirmation
- Receive BRIBE tokens in your wallet
Key takeaways
Our LBP token distribution event is set to take place on Copperlaunch on January 25, 2022 starting at 2:00pm ET and lasting for a duration of approximately 72 hours. The event is scheduled to end on January 28, 2022 at 2:00pm ET. Our intention for the LBP is to discover a community-influenced market price for BRIBE through the execution of a fair token distribution event.
What’s next
Following the LBP event, we will launch the Bribe app, where users can stake their DAO tokens in Bribe pools or bid on the staked voting power of a DAO-specific pool. Participation in the Bribe app earns users rewards in both BRIBE and USDC. The purpose of Bribe Protocol is to incentivize governance participation by rewarding DAO token holders.
Bribe will operate on a token model. The BRIBE token serves primarily as a store of value for the platform (fees are used to buy back BRIBE from the market). Fees on accepted bids are directed to the protocol treasury which will be used to fund long-term development.
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:
