Introducing Phantom DAO: Treasury-backed Accelerator

1) Why Fantom?

Just recently, Fantom has surpassed Polygon in terms of TVL and surpassed 100 million transactions. We believe this is just the beginning for Fantom and it will continue to outperform and create history as a chain. Investment is pouring into Fantom as its long term viability and potential as a Layer 1 / 2 blockchain continues to be recognized.

By establishing ourselves on Fantom, we intend to leverage its growing user base and capabilities as time goes on. There are two other factors that excite us as we think about a future on Fantom:

1. Fantom is a layer 1 blockchain that is fully compatible with the Ethereum network (so in that way acts defacto layer 2 as well) which facilitates movement of large amounts of money with very little effort or fees; and
2. The Fantom foundation is focused on providing services to power smart cities — i.e. crossing the chasm from the crypto degen world to very real world applications (things like public utilities, healthcare, education). If Fantom can achieve success in any ONE of these industries, it will be able to carve itself a permanent niche and use case and drive parabolic adoption . We can envision a world where Phantom DAO allows for and powers exchange of value from crypto assets (PHM and derivatives) to real world items or value.

We are aware of carbon cloned of Olympus on the Fantom network. We would be concerned about the long-term success of forks that do not add value to the network or forking process, do not have a clear utility and a small community.

2) Mechanism Design

Risk Free Value (RFV) and Protocol Owned Liquidity (POL) will function almost entirely as designed originally by Olympus. Phantom treasury will include more coins from the outset as proposed below:

• FRAX — 60%
• DAI — 25%
• gOHM — 10%
• FTM — 5%

We will update the community closer to launch on which coins will be accepted for initial bonding.

Phantom will introduce a limit to each holder to just under 5% of total supply. If a transaction would increase the holding over said limit, the transaction would revert. Our intent here is to reduce the possibility of whale dumping (or rational fears thereof) and outsized voting influence. It is our hope that this project truly be community driven from day one and stay that way over time.

The details regarding how the community allocations are made are yet to be released due to ongoing research and to ensure fairness by avoiding any gaming of the system which is common in the industry.

3) Tokenomics

Due to launching DAO-first, our initial supply and bootstrapping process will be different to most forks. These details are still TBD but our initial mix is slated to be:

• Early Contributors: 15%
• Investor: 5%
• Olympus: 3.33% — TBD, pending approval by Olympus and under the proviso that Olympus does not dispose of these tokens
• Community: 76.67%

Managing Dilution:

It is worth noting that there is a fine balance that needs to be struck between incentivizing bonding to increase supply and managing the reward/rebase rate to ensure that early investors are not diluted at an accelerated rate. We intend to work with expert policy makers to ensure that this balance is struck carefully to encourage mass sustainable adoption of Phantom DAO.

LP bonding:

We will update the community closer to the launch date as to which liquidity pairs we will accept at bonding.

4) Treasury Direction

All excess treasury reserves will be split 85% to the RFV treasury, apportioned per the proposed split of backing assets, 5% to the work DAO and the remaining 10% will be allocated to the Phantom Accelerator.

Phantom Accelerator:

This accelerator has the objective of accepting participants every month via community votes. Staff and participant scouts will propose summarized opportunities to the community to vote on each month. This way the community acts as the approval committee for Phantom’s Accelerator.

The program thesis is yet to be finalized, but we will intend to keep it broad enough to include multiple themes: such as DeFi startups, NFTs, and others.

This aspect of the treasury will be clearly documented and will be provided to the community before the launch.

Treasury Assets Yields:

The code will utilize Yearn to earn a reasonable rate of return on our treasury assets in return for acceptable risk. 100% of the proceeds from these yield activities will be added back to the treasury. The goal is to achieve compound growth in our treasury asset value over time. We anticipate the trading premium (or multiple) of our treasury value to be higher, especially in the early days of the project. These interest-bearing activities will help mitigate the risk of price growth outpacing the treasury value growth.

5) Smart Contracts & Frontend/Design

The Olympus smart contracts code will remain largely intact except for necessary edits needed for the code to function on the Fantom network and moving to Solidity 0.8 and Open Zepplin 0.4. Other than that, there will be minor edits required to allow for a 90/10 split between treasury and VC fund.

Phantom will have a code audit performed prior to launch. Yes, we do things properly around here.

Frontend design will be a dark mode UI used to follow the theme of “phantom” — keeping it simple and clean, no silly ghosts or mascots. At the end of the day, we are custodians of people’s money and we take that seriously.

We will take inspiration from the Olympus UI and use a dune style dashboard integrated natively within the website. Core statistics will be available on the dashboard.

6) Community & Growth

We will include expert policy advisors on our team from the beginning. We expect adding these advisors will help us to avoid any obvious errors and trapdoors — challenges other high APY protocols would have experienced.

We will ensure a functioning DAO right from the word go, so we don’t have the same issue other communities are having where the community asks “wen DAO” and the core team doesn’t have a good answer. We are building for the community.

Lastly, we are only using organic methods to grow our community. No influencers, no bots — nada.

7) Launch

More details to be provided in our Discord server as we get closer to launch. Those who are most active and supportive in our community will be rewarded.

Website: www.phantomdao.com
Twitter: @xPhantomDAO