Tokemak’s DeGenesis event has arrived. Please read this article carefully to understand the novel mechanics of this event.
DeGenesis TL;DR
- ETH addresses must be whitelisted to participate. Add yours in our Discord in the #degenesis-whitelist channel
- 3,000,000 TOKE are available in the DeGenesis and everyone will receive TOKE at the same final price between $2 and $8 per TOKE
- Final price is determined by total commitments, and is capped at $8 once total commitments reach $24M
- Once total commitments surpass $24M (up to the event’s $48M max cap), a proportional swap/private farming split is globally applied
- Everyone’s commitments qualify for the same relative split between TOKE swap and a period of private farming in our Genesis Pools
- Individual ETH addresses may contribute a max value of $100,000
in either ETH or USDC - The DeGenesis will have a seven day commitment period beginning on July 27th, followed by a 24 hour Last Look period.
- The possible outcomes of this event are summarized in the table below:
DeGenesis Introduction
Cycle Zero is kicking off with the DeGenesis, an event to secure initial DAO reserves to equip Tokemak with the starting assets it needs to generate liquidity. In the early days of Tokemak, the reserve ensures that liquidity can be deployed safely, providing protection for Liquidity Providers’ assets.
This is the first opportunity for users to get access to Tokemak’s native network token, TOKE, which is utilized by holders (Liquidity Directors) to direct assets as liquidity. TOKE functions as tokenized liquidity, giving holders the ability to direct the protocol TVL to various DeFi exchanges/AMMs.
The event has been engineered in a way so that all participants will receive TOKE at the same price at the conclusion of the event. While there is no first-mover advantage, there is a maximum cap for commitments as well as a limited event duration.
The DeGenesis will last one week, beginning on Tuesday, July 27th. The ETH and USDC commitment window will be open until August 3rd, when there will be a 24 hour Last Look period ending on August 4th. This Last Look period gives participants the chance to opt out of their commitment, once the final conversion rates for TOKE are known.
Participation in the DeGenesis requires a whitelisted Ethereum address. Early members in our Discord will find a DeGenesis whitelist channel where they’ll be able to submit a singular ETH address that will be whitelisted for participation. Duplicates will be deleted and an analysis of recently made Discord accounts will be filtered. Join our Discord here and be sure to submit yours in the #degenesis-whitelist channel before the 27th.
Event Mechanics
- Whitelisted participants can commit only one of the following assets to be converted into TOKE: ETH or USDC
- Once the participant commits ETH or USDC, they will be able to commit more of that asset up to the individual wallet cap, but cannot commit the other asset
- There is no minimum amount a participant can commit
- There are several maximum caps on the event’s commitments in order to safeguard the launch of TOKE. This is in order to ensure healthy price discovery and promote a fair distribution of TOKE at the onset of the protocol:
- Individual Ethereum addresses can commit a maximum amount of $100,000 notional of ETH or USDC, based on their prices marked to market at the start of the DeGenesis event. The assets will be marked to market again through a Chainlink oracle call at the beginning of the Last Look period, to finalize conversion rates.
- A total value of $24M notional across all participants’ wallets can be converted to TOKE.
- The total value that can be committed across all participants’ wallets is capped at $48M notional, at which point no additional commitments will be accepted.
(See Cheat Sheet in the above TL;DR section for a succinct summary of DeGenesis outcomes)
- If total commitments ≤ $6M, then TOKE price will be $2. Limited price discovery begins once $6M of assets have been committed.
- TOKE will undergo limited price discovery up to $8 until the total commitments surpass $24M. Commitments beyond $24M will not increase the price of TOKE.
- As commitments surpass $24M, a global swap/farm ratio is applied across all commitments. This will give participants the option to enter a period of private TOKE farming in the Genesis Pools with their committed assets that do not get swapped for TOKE.
- The globally applied split between swap and farm for committed assets can vary from 100% swap / 0% farm (up to $24M total commitments) to 50% swap / 50% farm (at $48M total commitments).
Potential Outcomes
The end state conversion rate (price) of TOKE and potential eligibility for private farming is determined by total commitments by all participants at the end of the DeGenesis.
There are three potential outcomes of the DeGenesis, outlined below.
Outcome One:
If total commitments by the end of the DeGenesis are less than or equal to $6M USD:
- 100% of commitment swapped for TOKE
- Conversion rate is $2 per TOKE
Outcome Two:
If total commitments by the end of the DeGenesis is between $6M USD and $24M USD:
- 100% of commitment swapped for TOKE
- Conversion rate is between $2 and $8 per TOKE, according to the equation below:
Outcome Three:
If total commitments by the end of the DeGenesis is between $24M USD and $48M USD:
- % of commitment swapped for TOKE for all participants:
- % of commitment whitelisted for private TOKE farming for all participants:
- Conversion rate is $8 per TOKE
Outcome One Example:
An individual commits $10,000 and the total USD value of commitments at the end of the commitment period is $5M. Then:
Individual commitment % swapped for TOKE: 100% Swap
TOKE conversion rate: $2 per TOKE
Outcome Two Example:
An individual commits $10,000 and total USD value of commitments at the end of the commitment period is $15M. Then:
Individual commitment % swapped for TOKE: 100% Swap
TOKE conversion rate: $5 per TOKE according to the equation below
Outcome Three Example:
An individual commits $10,000 and total USD value of commitments at the end of the commitment period is $32M. Then:
Individual commitment % swapped for TOKE: 75% Swap ($7,500)
Individual commitment % eligible for private farming: 25% Farm ($2,500)
TOKE conversion rate: $8 per TOKE
The max split possible at the full commitment cap of $48M is a 50/50 split of TOKE swap and private farming eligibility in the Genesis Pools.
It’s important to note that the private TOKE farming period of the Genesis Pools will offer an attractive returns, giving participants a chance to acquire more TOKE before anyone else and effectively lower their cost basis. Participants can decide to migrate their unswapped assets into the private farms, or else withdraw those assets, once the Last Look period has concluded.
The Last Look Period
The Last Look gives participants 24 hours to see the final state of the commitment period, including the TOKE conversion rate and the swap/private farm split (if applicable). The ETH will be marked to market through a Chainlink oracle call at this time.
The Last Look gives participants the opportunity to withdraw funds without making any swap for TOKE if they wish to opt out. Participants can withdraw up to their full commitment. If a participant removes only a portion of their assets, this will not change the price or ratio of any applicable swap/farm split.
If participants are happy with the final state of their commitment, no action is necessary during the Last Look, and the commitment will be automatically confirmed.
How to Participate
The live DeGenesis site will be shared in the Discord and on Twitter on Tuesday, July 27th.
Upon accessing the DeGenesis website and agreeing to the Terms of Participation, you’ll be prompted to connect your browser wallet (Metamask and others).
If you haven’t whitelisted your ETH address, you’ll receive an error message, so please don’t forget to head to the #degenesis-whitelist channel before July 27th in our Discord here.
Once your wallet is connected, you’ll clearly see fields to commit either ETH or USDC on the left side of the website.
Committing assets will trigger a wallet transaction for approval and commitment. Once your funds are committed, you’ll see the following successful transaction message:
We encourage everyone to check back during the Last Look period to make sure they’re happy with the final state of the event.
When the event has concluded, users will be redirected from the DeGenesis website to the main Tokemak website (www.tokemak.xyz):
Here you’ll be given the following options:
- Claim your TOKE that was successfully swapped
- Deposit that TOKE into Tokemak’s single asset farming pool
- Add UniV2 LP or Sushi LP TOKE/ETH liquidity and deposit in our LP pools
- Migrate any unswapped assets to a period of private farming in the Genesis Pools, or simply withdraw those additional assets
Alpha leak: the only TOKE available for the initial single asset farming and LP farming pools originates from the DeGenesis…
Come Chat With Us
We’re extremely excited to begin Tokemak’s rollout with the DeGenesis. We anticipate that you may have further questions, so we’re opening a specific channel in our Discord for DeGenesis related questions (#degenesis-chat).
We’ll also be re-opening our cantina channel, The Leaky Reactor, for the weekend if you want to come have a drink with the team and get to know us better. It’s a comfortable place to chat, spam gifs (within reason), and drink with fellow Tokemech Pilots.
Discord: https://discord.com/invite/Z5f92tfzh4
Website: https://www.tokemak.xyz/
Medium:https://medium.com/tokemak
Twitter: https://twitter.com/tokenreactor
☢️
Legal Disclaimers
This announcement has been written and published by Tokemak DAO. Tokemak DAO provides no guarantee, commitment, or undertaking to utilize any of its assets, funds, properties or personnel, TOKE users or other Tokemak protocol participants. Tokemak DAO does not owe, and does not intend to assume, any duties or obligations to TOKE holders, Tokemak protocol users or other Tokemak protocol participants, other than duties or obligations arising under laws of general application, such as non-waivable torts.
To the maximum extent permitted by applicable law, all software relating to Tokemak protocol is being provided on an as-is, where-is basis, with no representations or warranties being made to TOKE holders or Tokemak protocol participants and with no liability to Tokemak DAO or any other person involved in the development of Tokemak protocol. The statements set forth in this announcement also are not intended to be representations, warranties, guarantees or assumptions of duty or liability of any kind, and Tokemak DAO hereby disclaims the foregoing and will not be liable for any damages arising from use of the Tokemak protocol or TOKE. In the event of any conflict or inconsistency between this announcement or any other communication and the terms of any software license involved in the Tokemak protocol, the terms of the software license shall govern to the exclusion of this announcement and such other communications.
The forward-looking statements in this announcement are subject to numerous assumptions, risks and uncertainties which are subject to change over time. Such assumptions, risks and uncertainties could cause actual results or developments to differ materially from the results and developments anticipated by us. Even if our anticipated results and developments are realized, such results and developments may nevertheless fail to achieve any or all of the expected benefits anticipated by this announcement. We reserve the right to change the plans, expectations and intentions stated and implied herein at any time and for any reason or no reason, in our sole and absolute discretion, and we undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
This announcement is not intended to provide legal, financial or investment or other advice and we recommend that you do not rely on, and do not make any financial or other decision based, on this announcement.
Before submitting your ETH address or participating in the DeGenesis, you must affirm that you are not located, incorporated, or a citizen or resident of: the United States of America, Hong Kong (HKSAR), People’s Republic of China, the Republic of Seychelles, Bermuda, Burundi, Central African Republic, Democratic Republic of Congo, Eritrea, Guinea-Bissau, Libya, Mali, Palestine, Somalia, South Sudan, Western Sahara, Yemen, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea, Sudan, or any state, country, or jurisdiction where it would be illegal according to applicable law for participation.
