A Brief Update on OM Circulating Supply
Balancing organic growth with transparency and accountability
Things have been quite busy for the MANTRA DAO team, having just completed one of the most compliance focused — and naturally, very manual and time-consuming — token distributions in recent DeFi history. At the same time, we have remained extremely attentive to our community’s voice and their requests throughout this process, which ultimately led us to deviate slightly from our original plans and release an early ERC-20 version of the OM token. While it is true that building MANTRA DAO on Rio Chain in the recently launched Polkadot ecosystem is a momentous task that is being developed in stages, we recognize that the Ethereum blockchain already provides a thriving ecosystem for the OM token and the MANTRA DAO community to flourish while we prepare for the launch and migration into our native platform in the Polkadot network. Hence, our foremost objective in launching an early ERC-20 version of the OM token has been to allow our community for freedom of early liquidity and to start earning staking rewards on their OM token holdings as soon as possible!
Having said that, this slight deviation in our plans has required some adjustments to be made to the originally announced OM token emission schedule (which you can read in full here). As a brief re-cap, our Staking Rewards emission schedule was planned to look as follows:
- 30% of total supply, or 266,666,666 OM;
- Locked-up at the Token Generating Event (TGE), and will be unlocked on a rolling basis at a decaying growth rate so that:
- All 266,666,666 OM will unlock by the end of the 5th year since TGE (roughly 1,826 days since TGE);
- Unlocking schedule will follow a non-linear decaying growth function, such that a greater proportion of staking rewards will be unlocked on the earlier days and a lower proportion in the later days;
- The purpose of this is to create a concave downward release curve, so that early stakers receive a greater proportion of the staking rewards bucket, and this decreases over time;
- The team is still modeling out several scenarios, and the exact decaying growth rate will be shared with the community ahead of the TGE;
- Locked staking rewards tokens will not be eligible to earn staking rewards;
- Unlocked and earned staking rewards will be eligible to be staked and earn staking rewards from the day they become unlocked and distributed to token holders.
That being said, given that our native Staking Rewards distribution program does not kick in until after the launch of our native platform in the Polkadot network, we have made arrangements with several exchange partners (including Bithumb Global, among others which will be announced shortly), so as to assist us in carrying forward staking rewards programs to offer 88.88% APR to OM token holders via their platforms. Given the nature of how these exchange staking rewards programs work and the timing in which they need to be funded, we have made an adjustment from what was previously expected to be a daily “drop-fed” release of staking reward tokens into a lump-sum issuance up-front, to be followed by minor daily issuances starting 15 days after TGE.
In addition to that, the ERC-20 OM token release has taken the markets by storm and has gained much more traction than the team originally anticipated. Within 36 hours of our token issuance, the OM token holder base has grown from about 1,000 addresses to over 6,000 and counting! But love is coming not just from retail HODLers, but also from strategic institutional players! The MANTRA DAO core team has been working on several top tier partnership initiatives, and a few of them are coming to fruition much earlier than expected and which we hope to announce throughout the coming weeks. In order to help carry some of these partnerships across the finish line, the MANTRA DAO Foundation has front-loaded the minting of a small portion of the Referrals and Reserves tokens, which naturally has caused a small increment to the originally expected initial circulating supply. That being said, rest assured that most of these tokens are not going directly into circulation, but rather are allocated to a few select strategic partners with the goal of long term alignment (and HODLing).
Having set that straight, and to bring this post to a close, we’d like to make two further commitments to our community:
1. The MANTRA DAO team will be issuing an updated transparency report with respect to the OM token emission schedule within the next few days, which will reflect all issuance up to this point, and all upcoming scheduled issuances;
2. The MANTRA DAO team pledges not to mint a single token more until said transparency report update is published so that no issuances will come as a surprise to our community.
Thanks again for your continued support, and we look forward to sharing more with you both about the OM tokenomics, about our strategic partnerships, and about the MANTRA DAO technology roadmap in the upcoming days.
About MANTRA DAO
MANTRA DAO is a community-governed DeFi platform focusing on Staking, Lending, and Governance.
MANTRA DAO leverages the wisdom of the crowd to create a community-governed, transparent, and decentralized ecosystem for web 3.0. Built on Parity Substrate for the Polkadot ecosystem, MANTRA DAO gives financial control back to the people to store and grow wealth together.