This is a general description, a more detailed version will be posted in FlatQube docs.
Sustainable business model
The FlatQube project has been in existence for over a year, and in that time we have managed to attract significant liquidity and facilitate swaps that cumulatively add up to more than 500 million dollars!
In the first year of its existence, our project did not have its own token. However, not so long ago, the QUBE token broke onto the scene and now we can finally reveal all our plans for the near future.
The era of blockchain projects growing at rapid speeds has ended, and it is not known when that kind of growth will resume. As a blockchain project, we should be flexible and sensitive to the realities of the market and ready to adjust our ecosystem and products in order to ensure their best performance. Trading volumes on the exchange are able to generate yields ranging from several to double-digit percentages per year, which is a very good indicator of the long-term prospects of a business. Past experience shows that projects that have a stable business model have become successful. Stability allows you to survive periods of recession and retain your development team and end users.
In this regard, the QUBE token will have real business value and use cases. These use cases are detailed below.
15 million QUBE tokens will be minted in total and will become accessible over the course of 4.5 years.
The first 2 million have already been minted for the first half-year period. The way they were distributed has helped us test the token’s demand, adjust the market and take time for further development.
They were distributed as follows:
Another 13 million QUBE tokens will be minted when the DAO launches.
They will be distributed as follows:
The DAO emission will operate according to a sigmoid function
- k = 0.15 — smoothness coefficient
- time — number of weeks
- MID POINT = 104 — the total number of weeks divided 2
- TOTAL SUPPLY = 13,000,000 QUBE — the total supply during the DAO period
Then, the total circulating supply can be easily calculated as a sum of the pre-DAO supply combined with applied vesting and the circulating supply. Tails of DAO circulating supply could be balanced.
This distribution model ensures that too many tokens will not be given away at the beginning, but at the same time, lays the foundation for future growth while maintaining profitability. The later part of the token distribution process will consist of a smaller number of tokens and will occur when the project will have already established itself and will not need additional motivation for liquidity providers.
Launchpad and Private sale — we provided the community with private and public purchase options for QUBE tokens. The funds raised went to support the Everscale blockchain, as well as primary liquidity for the QUBE token. Tokens sold in this way are linearly unlocked every month for 12 months and go to investors.
Liquidity — tokens from this category were allocated to LP tokens for trading pairs involving the QUBE token.
Team — these are tokens that the team receives for their work on the project. As one of the most interested parties in the success of the project, the team is invested in the long-term health of the QUBE token and, at the moment, the team has not yet sold a single QUBE token!
Treasury — these are tokens that have been earmarked for the development of the project, including marketing efforts, future investment rounds, sponsoring other development teams and much more. Since the advent of the DAO, tokens from the Treasury can only be allocated to certain things as a result of voting.
Farming — These tokens will be earmarked for liquidity provider rewards to be distributed over the planned 4.5 years.
QUBE is first and foremost a governance token. We believe that token holders should have tangible returns from owning it and its value should not just be tied to the expectation of a price increase.
Participating in FlatQube DAO governance requires that an account have a balance of vote-escrowed QUBE (veQUBE). veQUBE is a virtual asset that only exists on FlatQube and is used within the DAO to determine each account’s voting power. veQUBE cannot be transferred. The only way to obtain veQUBE is by locking QUBE. The maximum lock time is four years. A user’s veQUBE balance will remain constant until the QUBE unlock.
The exact formula can be found below:
Lock time — selected lock time
Max lock time = 4 years — maximum available lock time
After the creation of the DAO, active members of the community, which we define as owners of veQUBE, will be able to create their own proposals and vote.
Examples of possible proposals:
- Use of treasury tokens
- Addition of new fee tiers
- Implementation of new token mechanics
The initial governance parameters are as follows:
- 20,000 QUBE total supply is required to submit a governance proposal
- 80,000 of QUBE supply is required to vote to reach a quorum
The parameters can be changed via proposal.
Most of the QUBE supply is directed to liquidity providers on FlatQube. Each pool has an individual liquidity gauge.
Additionally, every two weeks all veQUBE owners can take part in voting for the distribution of QUBE tokens in favor of LP tokens in the farming program.
The initial gauge parameters are as follows:
- The minimum weight of a pool given the current total token distribution is 1%
- Once every two weeks, a new voting period starts
- Pools that have 0% weight for 4 periods in a row will be excluded from the list of gauges
Currently, the exchange fee is 0.3% for most pairs and 0.05% for stable-stable pairs. All commissions are directed to the buyback and burning of QUBE tokens. So far, there have been three token burns: first, second, third. This process will continue, however, the mechanism can be changed via the DAO.
Getting added to the FlatQube whitelist will require an initial 100 QUBE tokens, though this may change through DAO voting
Getting added to the list of gauges requires an initial 1000 QUBE tokens, though this may change through DAO voting
Locked deposits — users who have locked their LP tokens for a certain period (from 1 week to 4 years) receive a farming boost of up to 50% on top of the base APR. For example, if the base APR is now 70%, then LP tokens locked in for the maximum period of time will receive a 105% APR.
Boosted farming — users who have locked their QUBE tokens and received veQUBE tokens can boost farming by up to 150% of the base APR. For example, if the base APR is now 70%, then LP tokens locked in for the maximum period will receive 175% APR.
Locked deposits and Boosted farming add up linearly. If users have the maximum boost in LD and BF, they will receive 210% APR instead of the 70% base APR.