Rock3T AMA on the Degen.VC Telegram Group: 16 January 2021
Paul: Ok all, AMA is open, fire away with your questions!
Q: Nick: Can you give us a short breakdown of what rock3t is? Maybe tokenomics details?
Paul: Our big-picture idea is that Rock3T could become (we are humble) an ETH-native form of Bitcoin, with similar properties. We think this for a couple of reasons:
1. The Treasury function that we include, which will get c.90% of the token supply (and subject to a Gnosis Multisig + community voting), that is designed to take advantage of future developments in DeFi. We have attempted to future-proof the project.
2. As mentioned, 90% of tokens will be placed in the Treasury. The balance will be a combination of #alphadrop to the #degenhorde, and tokens sent to the LiquidVault.
Q: Nick: Does this mean that the token/smart contract is ‘upgradable?
Fraser: It’s more replaceable than upgradable.
Q: Degelegend: Is rock3T tied into any of the other projects? Like does Rock3T interact with HARDCORE?
Paul: Not as currently designed, however the Treasury gives us massive flexibility to be deployed into ideas that are spawned by the community, and the DeFi space in general. If the community decides that a Hardcore integration is appropriate, then it’s put to a vote and we’ll take it from there.
Q: db: In what way would it mimic BTC? What properties are you seeking to emulate?
Fraser: BTC 🤔 Has anyone else stopped to think about what its core properties really are?
I mean strip away all the heroism, the legends and the history. If Satoshi were to design BTC today would it be BTC?
- Security — don’t need a blockchain because others are secure and can be built on top off (for example).
- Mining — do we need to mine when we can mint total supply stash it in a DAO governed contract and wait for better and better innovation to deploy it into (beyond staking = liquid vault) (for example).
Q: Shill_Pill: Hey Paul, if the treasury is receiving 90% of the supply, does that leave 10% to be distributed amongst alphadrop/team/influencers?
Paul: Check the previous answer to Nick. This is only deployable by vote from the community — although more #alphadrops are not to be considered lol
Shill_Pill: Ah I see. So you guys are keeping 90% locked away ready to deploy when someone comes up with an interesting twist to yield generation. So essentially you guys are ready to spin up the first fork?
Paul: Correct, or for example a Gargantuan idea where a token is dying, but has amazing liquidity that we can cannibalise for the community’s benefit.
Fraser: I guess like the key holders of tether or binance, until a larger multisig and ultimately DAO kicks in, yes, we hold them.
Q: Nick: Just to clarify, community refers to dgvc or rock3t community?
Paul: The Rock3T community, as it will govern the Rock3T tokens and the DGVC community receives the #alphadrops.
Q: db: Almost sounds like a “shelf” offering, but organic and in a way that creates a floor price to protect the investors?
Paul: Yeah this is interesting — almost like having a warchest to deploy in a VC-type environment.
db: Building a “fund” but perhaps a trustless fund via a liquidity vault and a DAO
Paul: Yep, that’s definitely one way to think of it.
db: That makes a lot of sense and certainly is easier than constantly trying to raise capital when a good project or idea comes along. Meanwhile, the investors are protected by the built in BUY pressure
Paul: Yeah, the economic levers we can deploy are fascinating and 3-fold:
1. Buy pressure: A portion of the ETH that is sent to the LiquidVault to claim tokens is used to automatically buy R3T tokens to top-up LiquidVault. This is mathematically-controlled and based on the amount of R3T tokens in the Uniswap pool. As the amount grows, the ETH fee reduces & the benefit of transacting with the LiquidVault (over Uniswap) increases.
2. Variable LP lock period dependent on system health — the LP-donation as we call it. System health is defined as R3T ETH liquidity on Uniswap squared divided by R3T liquidity on Uniswap [H=ETH2/R3T].
3. Perpetually locked LP is dependent on price strength — as the price rises the amount of LP that is permanently locked when someone claims their LP reduces.
It’s really fascinating — once the code is made public, you’ll be able to see the formulas that go into this
Fraser: Probably fair to say there are two halves of Rock3t: treasury (Paul is red pilled as an ex bank treasurer of multiple banks) and the power of the economic levers that liquid vault gave us. I loved this part as an ex innovative financial mechanism designer for governments and institutions globally for 5 years.
Q: db: I think we had talked about some of these ideas in the Discord LP groups: how can we attract capital, deploy it efficiently, and truly let regular people become VCs while still allowing them flexibility. VCs often can only redeem based on some arbitrary schedule. It sounds like Rock3t redemptions (ie redeeming the LP in the LiquidVault) are based on system health. So the effects of a large redemption by one person would be ameliorated somewhat. This is much better than the standard whale dump that causes instability and panic.
Paul: Yes, and then we add the fee-on-transfer mechanism that all our future project launches will have as a tool — this means that incentives are intimately entwined with the token performance, and hodler behaviour.
Q: Nick: How long will be the initial locking period?
Paul: It is set at 90-days on launch however we don’t expect this to be for long as the market starts to trade the token — once the code is published, we’ll release the various curves that determine the various periods & percentages of all 3 levers.
Fraser: Yeah, the lock period depends on health. If health improves quickly, the lock period drops quickly. The lock period is dynamic. i.e. its not set when you send ETH. It changes regardless
Nick: Oh nice, didn’t expect that to be dynamic.
Paul: All three economic levers are dynamic.
Fraser: Rock3T is like a big party ship as things get better in terms of liquidity etc it accelerates faster and faster
Paul: Once launched, the owner address cannot touch the formulas and they are all subject to the various characteristics as defined.
Fraser: Kind of inspired by Tsiolkovsky: https://en.wikipedia.org/wiki/Tsiolkovsky_rocket_equation though the formula was first derived by a Brit I understand. Look there will be improvements. Thus the treasury. We can adopt any improvements.
Paul: And innovations!
Q: db: As far as DGVC projects and alphadrops go, does this run parallel to Hardcore?
Paul: Yes, the roadmap has been released, but not in great detail as we are thinking that multiple launches in succession will devie great value for the #degenhorde
db: So, there is a floor price established because as the system aggregates perpetually locked liquidity. The more volume, the more liquidity. What kind of anomalous events might lock the gears, so to speak? Could those be dealt with via the DAO? Just saw the answer, I think
Paul: At the level of 5% permanent lock (to start) we don’t expect the same price impact as the buy pressure functionality. The more people transact with LiquidVault, the more liquidity, so all the levers are intertwined.
Fraser: Buy pressure is the big one. What is it? If no ETH were used to buy R3T and replenish liquid vault then the sender of ETH to liquid vault would be buying LP at a 50% discount. So buy pressure varies with R3T pooled. As more people pool the LP discount gets lower but more and more ETH is used to buy R3T.
Q: db: So it makes sense to buy r3t via the liquidvault earlier rather than later. Does all of the FOT go back to the LV?
Fraser: Yes — it all goes in but there is the facility to send some somewhere else if a good plan needs that. I can’t say that it makes sense. I can say that it’s going to be a wild ride.
Q: Nick: Not sure if somebody already asked, what is the total supply? 21m like btc?
Fraser: 11m. Paul is welcoming feedback about how much to treasury initially I think.
Paul: Yeah definitely. We’re around 90% but open to discuss.
Q: Nick: Eta for launch? 🙈
Fraser: It’s mainnet. Best final audits are done mainnet as other projects have learnt the hard way. All feedback so far so good. So into early next week we will be setting things up for the #alphadrop.
db: Thanks for the AMA @PaulScott5 and @fraserbrown_org !!
Fraser: No problem. In a very few days we will reveal all that is under the hood including formulae and straight forward specs as well as all code
Paul: Thanks for the questions folks — much appreciated and enjoy your day!
Lohit Patil: Thanks for the AMA guys. Hope we will see a Medium article on this soon.
Nick: Thanks for your time guys.
Jose Carlos Coelho de Melo Junior: Ty for the AMA.
