TRIG: Mining Your Rights to Govern the Contribute DAO
Let’s take a deeper look at TRIG and the rewards it will generate in the form of TDAO transfer fees.
TRIG tokens are Contribute’s virtual mining rig.
They represent real value in the form of rights, allowing holders to stake and earn a share of TDAO, the ecosystem’s governance token, from the transfer fees generated by its TRADING ACTIVITY.
As described in our previous article — ‘Contribute DAO: A Call for Action!’ — a share of all 1,000 TRIG tokens to ever exist will be assigned to EVERY participant of the upcoming Locked Liquidity Event, proportional to their TRIB contribution.
All of the TRIB deposited during the LLE will be matched with the total supply of 5,000 TDAO, which will begin trading in the Uniswap pool TDAO/TRIB shortly after the event’s end.
- 100% of the initial TDAO/TRIB liquidity will be locked.
- TDAO’s opening price will be its Price Floor, in TRIB, guaranteed by locked liquidity.
- TDAO tokens will grant their holders full decisional power over the Contribute DAO and its Treasury.
- Due to being locked, the TRIB tokens joining the event will raise the TRIB Price Floor accordingly, by $0.10 for every 100,000 TRIB as described in its tokenomics.
The liquidity pool tokens generated after the LLE will be wrapped and become TRIG.
- TRIG will have a total supply of 1,000.
‘Mining’ rights are therefore a limited resource and TDAO rewards won’t run the risk of being diluted. - No more TRIG will EVER be minted.
- TRIG can be traded anywhere. Buyers will be able to stake. It is a regular ERC20 token and will have NO fees associated with it.
“How much is my TRIG really worth?”
The rewards being earned by TRIG raise proportionally with the trading volume of TDAO.(*)
- Double it and TRIG’s APY will also double. Halve it and rewards will halve.
And the best part?
- It is actually possible to foresee the rewards earned by TRIG from volume(*) alone, and to find its ‘minimum APY’ at any given data point.
(*)TDAO transfer fees will initially be charged only on sells, and for moving between wallets, in the amount of 1%. There will be NO FEES on buying from the TDAO/TRIB Uniswap Pool.
Every (decentralised) trade of TDAO outside of this specific pool, buying and selling, will bear the transfer fees. More details are available.
This will grant the Contribute DAO and TRIG holders the ability to monetise from multiple arbitrage opportunities.
TDAO Governance remains in control of these parameters.
Let’s look at a real-life example:
- If 1,000,000 TRIB is submitted to the event, TRIG’s allocation will be of 1 TRIG for 1,000 TRIB.
- 1 TRIG will receive rewards equal to 1/1000 of all TDAO transfer fees destined to stakers.
- In this example, due to 1,000,000 TRIB being locked in the TDAO/TRIG pool, its Price Floor will become $1.93, a dollar higher than the current $0.93.
- For simplicity, let’s value TRIB at a stable $1.93.
- Based on the trading volume(*) of TDAO, we can then find the minimum value being earned by staking TRIG.
- The following ‘volume-based’ APYs are calculated at their minimum mathematical value, assuming that the TRIG/TRIB distribution is of 1 TRIG for 1,000 TRIB submitted, as specified above.
e.g. If $1,930 in TRIB will assign 1 TRIG, the APY generated by a $300,000 average daily TDAO volume(*) will be 284%, in the worst case, or 24% monthly.
Under the same conditions listed above, $10,000,000 in average daily volume(*) will earn TRIG stakers a minimum of 94.5x the value they originally contributed, in a year. This equates to 788% monthly.
>> If you paid more or less for your TRIB than $1.93 a piece, the min. APYs will have to be adjusted by the % difference between the two prices. The two are indirectly proportional.
Disclaimer: to discover the minimum APY for TRIG, rewards in TDAO are being valued at its Price Floor, the lowest it can ever be sold for TRIB, while TRIB to USD is also at its own Price Floor, sitting at $1.93 in this study.
Aside from trading volume(*), TRIG’s APY will also be impacted by:
- The trading price of TRIB at LLE, and afterwards;
- The number of TRIB tokens deposited to the event, so the ‘cost of 1 TRIG’.
- The TDAO transfer fees percentage, currently set at 1%, as well as the share of these fees devoted to TRIB stakers, hardcoded at 50% minimum, with a maximum possible of 90%.
- The trading price of TDAO when selling the rewards.
“When can I earn my money back?”
Based on volume, it is also possible to assess the maximum number of days required to ‘earn back’ the initial value contributed during the LLE.
(Based on the same conditions cited in the example above.)
“How will TDAO volume be driven?”
We have all become aware of how important TDAO volume will be for the Contribute DAO’s success.
- TRIG stakers, the DAO Treasury and the Contribute ecosystem’s growth rate will all depend on it.
- As TDAO is launched, our goal is to begin deploying ‘capital coordination strategies’ for volume stimulation.
This will grant the Contribute DAO (and TRIG holders) the ability to monetise arbitrage. In fact, every arbitrage opportunity on TDAO pairs is a way for Contribute to capture value in the same way as Binance charges a fee for trading between its pairs.
The difference being that Binance is capturing those opportunities across all token pairs in their exchange, hence they can charge a very small amount.
Meanwhile, Automatic Market Makers allow liquidity providers to take advantage of that opportunity in a decentralised manner by introducing fees.
The Contribute DAO is simply extending those fees to create a value-capturing mechanism which will be used to continually improve the overall ecosystem.
It is by seizing this chance that Contribute will thrive, developing faster and wider while growing the utility and value of its tokens family.
Some examples of potential strategies that TDAO holders will be able to approve by vote are:
- Utilising TDAO transfer fees from the Treasury to open TDAO/ETH and TDAO/WBTC liquidity pools.
- Devoting TDAO transfer fees from the Treasury towards incentives for liquidity providers in other TDAO pools.
- Start a line of communication with different projects where Contribute can stimulate farming on TDAO pools. (e.g. Farm, Sushi, Pylon, mStable, Cream and more.)
Contribute is looking forward to the launch of its DAO.
Let’s build a future of prosperity together!
Community members remain available for questions and open discussion.
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