Important: DINO Token Migration and Greenhouse Mechanics/Tokenomics
Dear Community,
In this article, you’ll learn everything you need to know about our upcoming changes. We will cover the upcoming token migration whereby users swap their DINO tokens for GREEN tokens, the tokenomics of the GREEN token, our strategy for 2022, and some additional housekeeping items.
DINO to GREEN Token Migration
With the release of Greenhouse, comes a new token — the GREEN token. DINO token holders will be able to exchange their DINO for GREEN, via a perpetual swap pool that will never expire. As part of this swap, we recognize that many of the issues that challenged the DINO token (hyperinflation, primarily) will need to be rectified with the new GREEN token, and as a result, there will be unique features that accompany the token migration.
- The total issuance rate will be 1 GREEN for every 100 DINO converted.
- Token swappers will receive a percentage of their total GREEN allocation upfront (often referred to as a “percentage at the token generation event”(TGE)), with the remaining share of their allocation transferred to a vesting contract.
- The vesting contract will employ a dynamic vesting period depending on when the DINO holder chooses to swap their DINO for GREEN. The total vesting period will be a maximum total period of 6 months from the point the token swap mechanic goes live. The vesting period will decrease per block from 6 months total vesting to no vesting over the six-month period, regardless of if you swap your DINO or not.
- Conversely, the conversion percentage at TGE will begin at 10% and gradually increase per block to 100% over the same six-month period.
Sample Vesting Scenarios:
If a user converts their DINO to GREEN at the instant the swap pool goes live, they will receive 10% of their GREEN allocation upfront with the remaining 90% transferred to the vesting contract for a 6 month linear per block vest.
If a user converts their DINO to GREEN at any point after 6 months, they will receive 100% of their GREEN with no vesting.
If a user opts to convert DINO to GREEN anytime during the 6 month period they will receive an amount calculated as follows: 10% + [90% x (days elapsed / 180) ]
Essentially, users vest 15% per month (90% / 6) plus the initial 10% they receive at TGE. Please note that the total duration is estimated based on average block times on the Polygon network. It is possible that the actual vesting duration is more or less than the quoted 6 months as a result.
It is important to keep in mind that we understand implementing the vesting period may not seem ideal for DINO holders at first glance. However, given the state of DinoSwap and the massive inflation experienced by holders, this is the only way forward to attempt to reverse course and fix the inflation problem that plagued the DINO token. Simply exchanging DINO for GREEN on a 1 to 1 basis does absolutely nothing to fix any of the tokenomics issues. Preserving the value of a yield farm reward token is of utmost importance for a protocol like Greenhouse and will lead to better opportunities for collaboration across the DeFi spectrum.
Some quick guidance on the various categories of DINO token holders:
Circulating DINO token holders:
Swap your circulating DINO for GREEN at your leisure. The Swap option will remain open indefinitely.
Presale Purchasers (Vested DINO):
Swap your circulating DINO for GREEN at your leisure and as your presale tokens continue to unlock, you can repeat the process as often as you like on Polygon. Greenhouse will have no new presale tokens.
Notice to DINO Liquidity Providers:
We recommend you to remove your liquidity from the DINO/USDC and DINO/ETH pools across all Polygon DEX, then break the LP position and swap your DINO for GREEN. All farms will no longer be incentivized leading up to the GREEN token generation event. We will make an announcement 48h prior to shutting off rewards on the Fossil Farms so that users can prepare for the migration of liquidity across all farms from DinoSwap to Greenhouse. Once you complete the swap, we encourage you to provide liquidity for the incentivized GREEN token pairs on the Greenhouse DEX.
Jurassic Pool Stakers:
We recommend you to remove your DINO from the Jurassic Pools and swap your DINO for GREEN. The Jurassic Pools will no longer be incentivized leading up to the GREEN token generation event. We will make an announcement 48h prior to shutting off rewards on the Jurassic Pools so that users can stake in the new Green Pool.
Tarpit Stakers:
Your DINO is currently locked. Upon unlock, claim your staked DINO tokens and DINO rewards from the Tarpit and swap DINO for GREEN. As mentioned previously, you will receive credit towards vesting periods for the time spent in the tarpits. Given the Tarpits account for a very large percentage of DINO token holders, the method we have chosen for vesting of GREEN is very important for these users. Entry to the Tarpits has been disabled and we will be discontinuing this feature going forward with Greenhouse, another key action step in reducing inflation.
Greenhouse Product Updates!
Greenhouse Swap: Greenhouse decentralized exchange will remain largely unchanged outside of branding. The trading fees will remain among the lowest in existence at 0.18%, and will continue to offer the most aggressive buy-back and burn program in existence (100% of the fees used for this purpose).
Greenhouse Farms: Greenhouse Farms will replace the Fossil Farms and will function largely similar to their predecessor. However, we will be implementing a 0.20% deposit fee for these farms, which will fully accrue to the treasury of which 75% will be utilized to buy-back and burn GREEN. The remaining 25% will help build the treasury for future project development.
Green Pools: Green Pools will replace the Jurassic Pools and will be primarily reserved for the native GREEN token staking, but may be evaluated for other partnerships going forward. We will also be implementing a 0.20% deposit fee for the GREEN pool, utilized in the same manner as the fee generated by the Farms.
Burn Pools: Burn Pools, pioneered by DinoSwap, will replace the Extinction Pools and have the same dynamics as the Extinction Pools. There is no deposit fee, but all GREEN supplied will be burned in exchange for partner tokens.
NFT Burn Pools: We will be partnering with projects to offer fractionalized NFTs that can be earned through burning GREEN. Stay tuned for more information.
Lottery and Raffles: Lotteries and Raffles will be removed from the Greenhouse product.
Greenhouse NFTs: We will be issuing NFTs for our protocol. The purpose of these NFTs will be to drive utility to our protocol. Unique features for holders of these NFTs potentially include early access to burn pools, additional governance rights, and IFO preferences.
Trading Pairs: UST will be the preferred stablecoin and trading pair for Greenhouse. We are expanding our strategic partnership with the Terra team and align in our beliefs that decentralized finance requires decentralized money. As a result, we will recommend all partners that want to pair their token with a stablecoin choose UST. Our native GREEN liquidity pool will also pair with UST. The Polygon ecosystem is lacking a UST preferred DEX and we hope to fill this obvious void in the DeFi space by bringing this ecosystem back to our DEX and farming platform.
GREEN Tokenomics
The GREEN token powers the Greenhouse DeFi ecosystem. GREEN is a reward token for contributing to the ecosystem, primarily by providing liquidity for key trading pairs on our DEX and partnering projects. The token is also a protocol value capture mechanism whereby revenue generated from the protocol is utilized to buy back and burn GREEN. Revenue utilized for the buy back and burn is generated in several ways: trading fees on the DEX, deposit fees charged for utilizing the farms/pools, and purchasing NFTs (+ more to come on this). There are additional mechanisms in place for controlling the supply of GREEN which include the Burn Pools and IFO platform (roadmap item).
Initial Total Supply: 2,500,000 GREEN
The initial 2.5M GREEN token total supply is derived from an analysis of our 100 to 1 swap, outstanding rewards for tarpit stakers, and amounts necessary to cover the new fair launch farms on Greenhouse. We expect there to be some inflation in year 1 due to ramp-up of DEX usage and cross-chain expansion, but we are prioritizing a sustainable inflationary system over the unsustainably high yields typically found on new yield farms.
Due to the vesting outlined above, we expect the circulating supply to be a number that changes very regularly as users perform token swaps of their DINO to GREEN, earn GREEN rewards, and conversely GREEN token burns.
The initial GREEN token allocation is as follows:
It is important to note that the Treasury and Liquidity wallets for Greenhouse are included already in the existing DINO allocation above. We have carved out an additional small allocation for the team due to an expanded team roster and for future team expansion. The team tokens will vest over 12 months, linearly per block with 0% available at TGE.
The GREEN token max supply will be uncapped. The smart contract retains a minting function which is utilized to mint new reward tokens. Examples of reasons for token minting could include: the onboarding of new farming partners, cross-chain ecosystem expansion, balancing of reward distribution to fair launch farms, etc. We expect there to be inflation, but the goal is to keep this monitored and controlled.
As new tokens are minted for rewards, tokens will also be minted for the Greenhouse treasury. For every 10 GREEN minted, 1 GREEN will be added to the treasury to support further protocol growth initiatives.
We will release more details on the Emission Rates and Distribution of GREEN to the farms and pools leading up to the full launch.
Next Steps
Thanks to everyone who has been involved in our community and we look forward to this new chapter with great optimism. Please join our new online communities following the official links below. As the name implies, Greenhouse aims to focus primarily on healthy, sustainable growth year-round by utilizing controlled variables that foster the best possible growth conditions for users, projects, and blockchains.
The branding transition has already begun with the Twitter account being rebranded here: https://twitter.com/GREENHOUSEDEX
Additionally, see below for links to additional communication tools and social media:
Official Telegram: https://t.me/greenhouseoffical
Announcements Telegram: https://t.me/greenhouseannouncements
Unofficial $GREEN Trading Group Telegram: https://t.me/greenhouseunofficial
Discord — https://discord.gg/F6hF8Z9vRt
Reddit: https://www.reddit.com/r/GreenhouseOfficial/
Medium: https://medium.com/greenhousedex
