TRIB in a Nutshell
What is Contribute?
Contribute (TRIB) is a decentralised capital coordination ecosystem built on Ethereum, leveraging protocols such as Aave and Compound.
It is designed to provide users with an autonomous and immutable base layer to built upon.
TRIB is a pioneer in decentralised finance for having employed a bonding curve to create its mathematical price floor.
In fact, through perpetual interests-generation and token burns, the TRIB price floor will only move in one direction, up.
The Contribute smart contract is fully permissionless and has no governance.
Other projects leveraging TRIB’s tokenomics can simply join the ecosystem, benefitting from it long-term while also adding their own value and skills.
At the same time, everybody remains totally independent from central authority. TRIB does not have a pause button. It is here to stay, grow and evolve.
How does it work?
In Contribute, anyone buying or selling TRIB through the smart contract will leave a fee of 10% locked in the protocol, for everybody’s long-term benefit.
This fee is being locked generating interest in the mStable platform forever.
Anytime somebody sells TRIB to the contract, they also claim any of the interests available to be claimed, but only up to the dollar amount of TRIB tokens being sold.
TRIB tokens are minted on a bonding curve, so the higher the supply, the higher the price. This means that people that bought when the supply was lower, will need to sell less TRIB in order to claim the interest accumulated in the pool.
This is because their TRIB dollar value will be higher.
So if there is $100 in the interest pool, anyone can claim it by selling $100 worth of TRIB back to the contract. After they do that they will get $190 back.
Why $190 and not $200, you may ask. ($100 from the TRIB sale plus the $100 from the interest.)
It is because on every interest claim, and therefore on every sale, 10% of the TRIB amount sold is always locked by the protocol and sent to the ‘Burn’ address.
‘Burning’ TRIB tokens don’t reduce supply but it locks those tokens forever in the BURN address.
This has two main side effects:
1) It raises the price floor. Which is the lowest any TRIB token can ever be sold back to the Contribute smart contract.
2) It locks interest-generating mUSD in the contract forever.
As the floor price is constantly rising, if you bought TRIB tokens at a price lower than the floor, you will never be at a loss.
While the mUSD locked in the contract is making sure that there will always be money to be claimed by someone and incentivise interaction with the protocol.
But remember, to claim the interest, you MUST have TRIB tokens, so even if everyone sells their tokens tomorrow, someone will still need to buy tokens to claim the interest.
And when they do, 10% will be locked forever in the contract as explained, making the pool bigger and luring the next person to interact with it to claim the next interests sum available.
And so the cycle begins again…
How claiming the interest works?
Only one person gets the interest that is generated by the many.
But by doing so, they need to contribute 10% to the contract, which is then locked forever generating more interest.
So if you bough $10 worth of TRIB today and every one that participated in the GME were to sell their tokens, you would be sitting on a savings account with around 20K in it.
That 20K would be generating interest for anyone holding TRIB tokens to claim. But guess what? You are the only one holding tokens now.
So you are the only one who can claim it, or someone else will need to buy and sell TRIB to the contract to claim that interest.
But if they do that, the price of TRIB will get higher because of the bonding curve, and they will also raise the floor price.
In Contribute, it is actually not that bad to be the last one holding the token.
To be exact… the last one holding the token will always be the smart contract. You can imagine it as it being the strongest hand in the room. The ultimate ‘hodler’. You know it will never sell.
That is why we have the floor price.
The devil is in the details
There are a few nuances that you only get after thinking about the tokenomics for some time.
For example, if you are the last person on earth holding TRIB tokens, that means the last TRIB token you will sell back to the contract will be valued at the floor price.
But since you are the only one holding TRIB tokens, you would be the only one able to claim the interest in the pool.
So as long as there is interest being generated, the actual floor price will always be floorPrice * 2.
To learn more go to https://tribtoken.org
