Introducing INSURENOMICS
Today, we are going to introduce our native token, INSURE, and the tokenomics. In this article, we will give detailed explanations about allocation, distribution schedule, and utility.
What is INSURE?
INSURE is the native token of InsureDAO. We distribute INSURE to get as many community members involved as possible in the InsureDAO governance.
Another purpose of INSURE distribution is to reward community members and incentivize them to deposit liquidity into insurance pools. As the insurance premiums are basically determined by the demand and supply of the insurance, more liquidity enables community members to purchase insurance at a lower premium.
We developed our native token & veINSURE system based off of Curve’s veCRV mechanism. Community members have an incentive for holding INSURE, as they can receive veINSURE, allowing community members to acquire voting power and boosting power, by locking their token to the voting escrow contract.
Additionally, a few per cent of the insurance premium paid by the insurance purchaser will be used to incentivize tokenholders via buyback and burn.
INSURE Distribution
- The total Supply for the first five years: 210 million
- 40.40% of 210million — Community
- 20.74% of 210million — Team with 3 years vesting
- 0.45% of 210million— Advisors with 2 years vesting
- 12.04% of 210million — Investors with 2 years vesting
- 10.88% of 210million —Treasury(foundation)
- 10.35% of 210million—Treasury(Community)
- 3.15% of 210million— InsureDAO DeGenesis
- 2.00% of 210million — Airdrop
Community allocation will be utilized to incentivize community members to deposit liquidity and participate in the mining programs. At the launch, we are planning to start two mining programs: The underwriting mining for insurance pools, and the liquidity mining program for INSURE/ETH pair on DEX such as Uniswap.
Foundation Treasury is a treasury that the team can utilize later as necessary. It is expected to be utilized for future fundraising, strategic partnerships, and other strategic uses.
Community Treasury is a treasury that is utilized by the Community DAO voting. At the launch moment, no specific use case is set so the community needs to decide how to utilize and what is the best use for the future of InsureDAO.
InsureDAO DeGenesis is the event to bootstrap initial liquidity for InsureDAO Reserve Pool and the first opportunity for users to get access to InsureDAO’s native token. There is an additional 10% bonus of the amount in INSURE each participant purchased for qualified users.
Airdrop is allocated to the community member who participated in the InsureDAO testnet campaign last year.
Distribution Schedule
For the first 5 years
The total Supply of INSURE for the first five years is 210 million. The allocation will be distributed to the community members over the course of 5 years. Team, advisors, and investors subject to 2–3 years vesting.
Treasuries for both foundation & community will be pre-mined at the launch. These treasures are not planned to be utilized from the outset but will be utilized gradually over time to expand the InsureDAO ecosystem.
After 5 years
Protocols without inflation won’t be able to incentivize community members and may fail to attract new talented DeFi users in the future. This may lead protocols to be trapped with existing tokenholders and fail to expand the ecosystem.
Therefore, we decide to keep the option for permanent inflation after 5years. We will let DAO decide whether to mint 2,800,000 tokens per year since the 6th year. Even if the DAO chooses a permanent mint, we think that the buyback and burn will adjust the total supply and not cause extreme inflation.
Utility
There are three main utilities of INSURE, Locking, Voting, and Boosting.
Locking
As explained above, by locking the INSURE token, community members will receive veINSURE, a unit of DAO governance voting power.
INSURE can be locked for one week at a minimum and up to four years. The longer they lock INSURE for, the more veINSURE they receive.
Voting & Boosting power for a user can be calculated as below.
The Power will slowly decay over the period.
Voting
veINSURE, which stands for vote escrowed INSURE, allows community members to participate in the InsureDAO governance and vote on the upgradable modules like the following.
- Fee rate
- Market parameters
- Price model
- Reporting module
- Governance module
- Admin address(Select new admin)
- Acceptable market templates
There is no minimum voting power required to vote.
Moreover, they can vote on the gauge weight which determines the allocation of INSURE rewards across insurance pools.
Boosting
Another utility for INSURE is the ability to boost your rewards for underwriting mining. veINSURE allows community members to acquire voting power to earn a boost of up to 2.5x rewards on the liquidity you are providing on insurance pools.
This utility incentivizes community members to lock INSURE and participate in the InsureDAO governance.
About InsureDAO
InsureDAO is a decentralized insurance protocol, allowing anyone to create an insurance pool easily to “Cover every single risk in DeFi space”. InsureDAO provides an insurance builder kit and insurance market. Additionally, we offer the lending function to INSURE token stakers. We will launch InsureDAO on Mainnet and Arbitrum this February.
If you are interested in learning more, check out our white paper.
Also, you can join us on Twitter, Discord, or Telegram! :)
Twitter: https://twitter.com/insuredao
Discord: discord.gg/8BA5f5rurq
Telegram: http://t.me/InsureDAO
