$LGND Tokenomics and Governance
You might have figured out that we call Legendao a DAO because it’s actually going to be a DAO. A living, breathing DAO.
When people hold $LGND, they get to decide most of the aspects regarding the platform, just like within any other DAO.
But Legendao is different.
We’ve integrated certain financial aspects of other DAOs.
But we’ve made some improvements on specific common DAO mechanisms in order to make sure that our DAO can feed itself.
Through tweaks to fixed-supply bonding via Protocol-owned Liquidity (POL) and Protocol-owned Treasury (POT) applications and other mechanisms we’ve set up, Legendao is designed to be a self-funding loop where token holdings benefit both the DAO itself and individual Legendao users.
LP tokens will be deployed to ensure healthy liquidity for $LGND within external exchanges. If needed, $LGND tokens will combine with other tokens in the reserve to further add liquidity. Other IBC coins will be staked or combined to supply liquidity for other pools. These holdings impart floor value to the token and establish a viable path for $LGND holders to deploy capital in ways that benefit the project.
DAO holdings impart floor value to $LGND while empowering holders to use their $LGND for their own benefit, which in turn adds benefit back to the DAO itself.
This is how it works.
$LGND is meant to serve as both the in-universe currency and the governance token. Because of this, we needed to find a sustainable tokenomics model that doesn’t dilute token holders’ supply — Fixed-supply bonding.
Fixed-supply bonding allows the DAO to sell $LGND at a discount, but only up to a certain amount.
$LGND has a fixed total supply. The DAO is limited in the amount of tokens it can sell at any given point in time.
And all $LGND bought at this discount will be subject to the “Somewhat” Liquid Staking mechanism.
“Somewhat” Liquid Staking
You can do anything you want with your $LGND within Legendao.
The second your $LGND is transferred into the Legendao platform, you begin to accrue rewards. You can also use your $LGND for all actions in both the Mint Lab and the Legendao Universe, like buying Cryptid avatars, Lootboxes, Mintboxes and voting.
But when you withdraw your $LGND from Legendao there is a 21 day unbonding period. You’ll no longer earn staking rewards when you withdraw your stake.
You cannot perform any actions on the Legendao platform if you do not have any $LGND staked. This includes during the 21 day unbonding period. Some $LGND must be actively staked to participate in the platform.
After 21 days, you’re free to do whatever you want with your withdrawal.
Most of you are familiar with linear proof-of-stake systems: rewards are based on the amount of tokens you stake. Simple.
But in Legendao, staking is non-linear. Your Cryptid avatar, as well as your Council of Gyld NFT, provides you with enhanced staking perks.
Two people could have the same amount of $LGND staked on Legendao.
But if person A has a Cryptid avatar with high rank and awesome gear (obtainable by purchasing Lootboxes), her staking rewards will be significantly higher than person B’s.
Here’s the formula:
The function that determines a wallet’s APR depends on three different variables: the Cryptid avatar level, the Loot applied to that Cryptid avatar and the amount of $LGND tokens staked.
% APR = f(avatar_level, avatar_items, stake)
Token Supply Limit
Though we strive to keep LegenDAO as decentralized as possible, we are admittedly keeping some aspects of centralization to live up to the obligations we have — read more.
To clarify the above visuals — The airdrop is vested. 20% on day one, the remaining 80% linearly emitted over 12 months.
A pending article with everything you need to know about the airdrop is almost ready to roll. We just need to finalize a few more numbers, and away we go!
Follow us here on Medium and you’ll be the first to know when it’s published.
YOUR ATTENTION PLEASE
Both legendao.io and gyld.legendao.io are down while we upgrade to meet the demands of our new platform.
Please be patient.
Legendao is an independent project under SCRT Labs auspices.
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Want to buy a Council of Gyld NFT?
Visit the secondary market on stashh.io.