OLLO Tokenomics and Utility
OLLO believes in a sustainable and profitable Decentralized Finance future
Over the past year, the team has studied and observed many of the top AMM (Automated Market Maker) and DEXs (Decentralized Exchanges) token designs and discovered a central design flaw — missing profit. Most current designs rely on new 3rd party liquidity to give users steady returns. APR emissions work great to provide rewards at first, but as time progresses, blockchain growth must advance to provide returns as APR dwindles. The OLLO tokenomics are designed to correct these issues.
Utility
The Station Vault
OLLO Station plans to utilize the power of automation to provide users with advanced trading opportunities. Leveraging fees and profits through automation, tools, station protocols, MEV extraction, minting fees, liquidations, and more, allows OLLO Station to accumulate and store protocol-owned liquidity in the Station Vault to be redistributed in the form of recycled emissions.
Recycling Emissions
OLLO Station bootstraps its growth by utilizing traditional emissions for the first 5 years. Taking advantage of early emissions rewards, the Station Vault stays locked until profit and fee generation has grown to a sustainable predetermined pace to begin the redistribution. The recycled emissions rate will be raised or lowered based on value generation levels.
How the Station Vault Recycles Emissions:
- Vault Generation — value accumulated and stored from OLLO Station’s features that generate fees, profits, or liquidations.
- Yearly Generation Level — the Yearly Vault Generation level is based on live daily generation levels.
- Vault Reserves — These are future years of emission security & a reserve value assigned to the Vault Module. The value represents the minimum Vault Reserves required to begin redistribution. The Yearly Generation Level is used by OLLO to assign the Vault Reserves. The Vault Reserves value chosen is 2 years of 10% (20M OLLO).
- Distribution Level — The minimum vault generation level required for the yearly generation to unlock the Vault and begin the distribution of Recycled Emissions. The Distribution Level chosen is 10% (10M OLLO) per year.
- Unlock and Begin Redistribution — Both Vault Reserves and Yearly Activation Level must be satisfied for the vault to unlock and begin redistribution — 20M OLLO in reserves + a minimum daily value generation of 27,397.26 OLLO (10M OLLO per year)
- Determining Yearly Generation & Activation Levels: The Year 1 Emissions total is used to determine the activation level. | Year 1 Emissions = 100M OLLO | Activation level = 10% of Year 1 (10M OLLO).
- Rate Increases — Increased generation is used to raise rates as well as increase vault reserves in a 1:1:1 ratio to satisfy the 2 years of reserves and the current year’s redistribution. For example, for every additional 3% of value generated, 2% goes to the vault reserves and 1% is used to increase the distribution percentage.
- Rate Decreases — If for any reason the yearly value generation level decreases the rate is automatically lowered to match the yearly generation level
- Rate Decreases & increases — If the rate falls below the reserve level, the rate will increase following the yearly generation level. Once it reaches the previous height & reserve level the rate increases will continue on in the standard 1:1:1 split ratio.
Governance
OLLO Station Foundation’s Governance is made up of a Main Decentralized Autonomous Organization (DAO) named Mission Control and multiple Sub-DAOs in order to separate powers and responsibilities.
In its Genesis, OLLO’s main DAO & sub-DAOs are mostly comprised of the founding members (Station 8). Over time, invaluable community members will be considered for positions as well. OLLO holders and stakers oversee the DAOs and their members, while any unsatisfactions are solved through a community discussion followed by a proposal.
Unlike traditional governance (allowing any unchecked proposal), Mission Control provides a set of proposed rules and guidelines.
This decision was taken to:
- Limit wasted community pool resources
- Guide users in proposing changes aligned with the project’s goals
Suggested growth and community proposal templates will be provided for inspiration. We invite our community to stand behind the creation of our rules and guidelines as their main purpose is ultimately to protect the community. OLLO stakers and holders can change the rules and guidelines through a community discussion followed by a proposal.
Proposals must be detailed and posted to our soon-to-be-released community board room forum, dubbed the Council Forum, for investigation and discussion. The community is encouraged to prove merit through discussion of the proposal being submitted and vote preliminarily to reach a common consensus that the proposal being submitted has gone thru a proper and thorough community vetting process.
Blockchain Security
Built using the Cosmos SDK, the OLLO Blockchain reaches consensus using a Proof-of-Stake mechanism. Thus, OLLO holders are responsible for securing the blockchain by staking.
By staking, OLLO holders lock their tokens for 21 days while earning yield for securing the network, becoming OLLO stakers. As we approach the OLLO Mainnet Launch, the Station 8 team (founding members) will release a tutorial on how to stake OLLO.
Supply and Rewards Distribution
Supply Emissions
To facilitate liquidity rewards, staking rewards, the developer fund, the community pool, the Station Vault, and validator rewards, the emissions rate for the first year will be at 100%. Explanations of those above are detailed later in this article.
The emissions will decrease by 10% annually for 5 years. During this time, recycled emissions will play a role in deciding whether:
- Emissions are decreased earlier before the 5-year schedule concludes
- Emissions will increase an additional 10–30% for several years to reach a sustainable recycled emission pool after the 5-year schedule ends
Due to the emissions decreasing yearly, early stakers will be rewarded the most for their early support and contributions. However, it is possible for the vault generation to eventually grow large enough for rewards to begin to increase yearly instead of decreasing.
Emissions Distribution
The emissions will be distributed according to the breakdown below:
- 40.5% for Liquidity Rewards: to encourage token holders to provide liquidity on OLLO Station’s liquidity pools, a vast amount of the emissions are used for incentivization.
- 31% for Staking Rewards: to encourage OLLO holders to lock their tokens for 21 days and secure the network, a significant amount of the emissions is distributed to OLLO stakers.
- 15% for Developer Fund: used to foster the development of the OLLO Station.
- 5% for Strategic Reserves: managed via Station Mission Control used for expansion, infrastructure, growth strategies, and more to foster the growth and longevity of OLLO Station
- 5% for Community Pool: managed via proposals, the community pool is allocated to foster the growth of OLLO Station.
- 3% for Station Vault: a small portion of the emissions will be locked into the Station Vault to increase sustainability efforts.
- 0.5% for Validator Rewards: divided amongst the validator set’s total delegations. The team is putting the starting distribution minimums and maximums caps into place. When the final details will be established, this article will be updated accordingly.
Token Distribution
With the majority of the genesis supply strategically distributed to the community via an airdrop, The founding members (Station 8) encourage the decentralization, adoption, and growth of OLLO Station — both as a blockchain and a next-gen DeFi Hub.
- OLLO Genesis Supply: 100,000,000
- OLLO Hybrid Max Supply: 500,000,000 (hybrid flex supply for sustainability efforts)
Wisedrop Airdrop & Lockdrop Launch Event (45% — 45 Million OLLO)
Incentivize the decentralization, adoption, and growth of OLLO Station via:
- Wisedrop Airdrop: ATOM, OSMO, JUNO stakers (20 Million OLLO)
- Launch Phase 1: For Wisedrop Airdrop participants — OLLO Stakers & Early Liquidity Providers (5 Million OLLO)
- Launch Phase 2: Liquidity Bootstrapping Event (7.5 Million OLLO)
- Launch Phase 3: Lockdrop Event for Liquidity Providers (12.5 Million OLLO)
Strategic Reserve (20% — 20 Million OLLO)
- Infrastructure: maintain the blockchain
- Marketing: accelerate the adoption of OLLO Station
- Future Initiatives: plans to further develop OLLO Station
Community Pool (20% — 20 Million OLLO)
Through governance:
- Fund Proposals: foster the development and growth of OLLO Station.
Seeding initial Pools (2.5% — 2.5 Million OLLO)
- Seed OLLO Station’s Pools: at genesis, OLLO Tokens will be used to establish early liquidity in pools
Team (12.5% — 12.5 Million OLLO)
- Ensure the project’s long-term success and facilitate the team’s continual expansion.
Release Schedule
Wisedrop Airdrop, LBP & Lockdrop (45% — 45 Million OLLO)
Community Pool (20% — 20 Million OLLO)
Available through governance.
Strategic Reserve (20% — 20 Million OLLO)
Team (12.5% — 12.5 Million OLLO)
The entire allocation is linearly vested over 8 years — 1,562,500 OLLO will be unlocked yearly.
Seeding initial Pools (2.5% — 2.5 Million OLLO)
About OLLO Station
OLLO Station is a next-generation all-in-one DeFi Hub built utilizing the Cosmos SDK, Cosmwasm, Interchain Accounts, AuthZ, and other unique in-house custom modules. OLLO Station will provide users with a complete suite of tools to trade, stake, bond, borrow, manage and automate their cryptocurrency portfolio without ever leaving the station.
Twitter: https://twitter.com/OLLOStation
Discord: https://discord.gg/GxBqZ9mSSm
Telegram: https://t.me/+s8i4AKk0Tt44Yzgx
