Unifund Governance (iGOV)

iGOV token

Control of both funds and critical features of the Unifund ecosystem will be given to holders of the iGOV token in the future. The ability to decide new base currencies, or for groups to be force-closed, should never be in the hands of one person or team. The iGOV token will allow us to implement many powerful features that we previously felt obligated to leave out to protect users from both fund managers, and from decisions by the Unifund team they may not agree with.

iGOV token is meant to be used within the Unifund system; its primary function is not to be traded.

Stakers can receive iFUND and iGOV tokens, and have the option to stake iFUND or iFUND/ETH LP tokens.

Tokenomics

The iGOV token has a fixed rate of inflation. Supply enters the system at a rate of 100 tokens per month. The supply is being kept low to ensure a single token is enough to have an impact on any vote.

• Initial supply: 500 tokens
• Air dropped amount: 400 tokens
• iGOV Distribution rate: 100 tokens per month
• iFUND distribution rate: 333,000 per month

Yield farming: The good, the bad, and the ugly

Yield farming solved a huge problem, the incentivization of liquidity. By rewarding LPs with tokens, teams no longer have majority control over the liquidity in their token’s pool, because others are now willing to supply it themselves.

Yield farming creates the new problem of attracting pure profit farmers. If the incentives are too high, outside actors will join the system to extract value from the community that the system was made to empower.

iGOV Disincentives

To combat profit farmers quickly entering and exiting our system to extract value, two targeted features have been added:

• a penalty for unstaking early;
• a large fee on transfer.

Early Unstaking Penalty

Anything removed from staking less than 30 days after your most recent action (other than claiming rewards) will have 2% penalty. This 2% will be sent to the control of iGOV holders who can vote on how it’s used. The penalty is not applied to earned rewards; instead it is only applied to what you staked.

Fee On Transfer

The transfer fee on iGOV has been set intentionally high to discourage rapidly trading in and out of the token. Five percent of the tokens from each transaction will be sent to the control of the iGOV holders.

Governance tokens sometimes get a bad rap for being overly complex and putting the cart before the horse. We kept it really simple in our initial design, starting by putting funding under the token’s control. From there, we can build out new features with malleable functionality.