OPTY Utility Token
As we approach OPTY launch on June 23, 2023, we review the purpose and utility of the OPTY token.
Updates
- July 20, 2023: Token Sale and Treasury unlock dates specified below. Air Drop unlock date not specified yet.
Purpose
The purpose of the OPTY Token is to decentralize OptyFi governance and to reward users and contributors of the OptyFi project.
Utility
OPTY holders benefit from the following utilities:
- Governance Participation
- Product Access
- Fee Discounts
Governance Participation
OPTY holders have the right to participate in major decisions regarding the Protocol. This includes feature development road map, chain deployment, expansion and integrations, configuring protocol vaults, approving partner vaults as well as other protocol operations.
Product Access
In order to ensure OptyFi products (such as Vaults or Strategies) deliver exceptional performance, it may be necessary to limit access to these products. OPTY holders will receive priority access to limited access products in the future.
Fee Discounts
In the future OptyFi Vaults will charge fees to users. OPTY holders will be entitled to receiving discounts on Vault Fees. The Vault Fee and OPTY discount eligibility will be decided by OptyFi governance.
OPTY Allocation and Distribution
A fixed supply of 100MM OPTY will be minted at token genesis. The supply shall be allocated as follows:
Treasury
The treasury will be initially controlled by multi-sig wallet comprising members of the OptyFi core team and advisors. As soon as possible, the control of treasury will be transferred to members elected by OptyFi governance.
Community Rewards
The purpose of OptyFi’s Community Rewards Program is to incentivize adoption and usage until the OptyFi product has matured and Product Market Fit is achieved.
OptyFi Protocol has allocated 38% of OPTY Supply for Community Rewards. This allocation is to be emitted over a 24 month period. It is assumed that OptyFi Protocol should be able to achieve Product Market Fit during this period.
Reward Program emissions shall be routed towards the following:
- User Vault Rewards
- Partner (B2B) Vault Rewards
- Builder Grants
- Community Bounties and Prizes
Supply Dynamics
Phase 1: Inflation
During the first 24 months, the circulating supply of OPTY will increase as the allocations for Team, Advisors and Investors are unlocked and as Community Rewards are emitted. As described above, the primary purpose of the Inflation Phase is for OptyFi to achieve Product-Market-Fit.
Phase 2: Deflation
By the end of 24 months, OptyFi’s major products will have launched and (hopefully!) achieved Product-Market-Fit. At this point no new supply of OPTY will be entering the market.
OptyFi fees will then be used to sustain Protocol Operations and excess fees will be used to acquire and burn OPTY. Reduction in OPTY supply will result in strengthening its utility, thereby providing greater benefits to our long-term OPTY holders and OptyFi users.
Up Next
OPTY Token Launch
