Tokenomics V2 sets sail!

With the recent passing of UIP-6, we at Uniwhale have been busy implementing the proposed changes.

Just to recap, UIP-6 addresses some of the key concerns our community has on the existing tokenomics and look to achieve a more coherent tokenomics with the following goals:

• Protocol revenue directly drives both esUNW and UNW.
• UNW and esUNW complement and create a positive feedback loop.
• Emission is used more effectively to drive revenue higher.

creating the following Flywheel:

esUNW vs. esUNW Classic

Before we go further, we would like to spend one minute clarifying the naming of esUNW going forward. As we all know, one of the major changes our community will see as part of the tokenomics upgrade is the migration of existing esUNW to a new governance token (“esUNW-v2”). Whereas esUNW-v2 is a major upgrade from the existing esUNW, its core governance feature does not change and we would like to continue using the name esUNW to refer to our governance token. That means the existing esUNW will be called going forward “esUNW Classic”.

So in summary, the old esUNW will be called esUNW Classic, while the new esUNW will be called simply esUNW.

What you should expect over the next few weeks

Tokenomics upgrade is not a trivial undertaking, and we do expect the upgrade to take a few weeks to complete.

There are a few key changes you will see over the next few weeks, which are:

1. Replace esUNW Classic emission with UNW emission
2. Activate Fee Vault
3. Migrate esUNW Classic to esUNW
4. Start esUNW staking
5. Migrate esUNW Classic to UNW
   (for those who do not wish to migrate to esUNW)
6. Start esUNW redemption
7. Start esUNW emission (including the weekly auction)

Target timeline of the Tokenomics upgrade

The above changes have dependencies and therefore need to be rolled out in sequence. We therefore are looking at the following target timeline to introduce the key changes.

Week of Jul 12: Replace esUNW Classic emission with UNW emission

With esUNW Classic emission replaced with UNW, please expect the following changes:

• Trade and Earn : zero (replaced with 60% Hyper Event with Ladder)
• Staked ULP : zero (replaced with 20% Hyper Event with Ladder)
• Staked esUNW Classic : zero (pending esUNW upgrade)
• Staked UNW : 10% (or 5,560 UNW daily)

Week of Jul 19: Activate Fee Vault and Migrate esUNW Classic to esUNW

This week, we expect to start the migration of esUNW Classic to esUNW (at 50,000 esUNW Classic to 1 esUNW), which is expected to last for one week.

With the migration ongoing, we will also stop esUNW Classic staking and move the relevant fee distribution (i.e. 40%) to Fee Vault, which will then convert and hold these fees in form of the protocol liquidity.

Week of Jul 26: Start esUNW staking and Migrate esUNW Classic to UNW

After the successful conclusion of the migration of esUNW Classic to esUNW, we will re-activate esUNW staking (daily emission of 5,560 UNW daily).

For those who decided not to migrate to esUNW, you will be now able to migrate esUNW Classic to UNW. You will have three options to choose from:

1. Vest 100% over 6 months linearly (as is the case now),
2. Vest 50% immediately (by burning 50%), or
3. Vest 100% immediately on eligibility (up to the sum of esUNW Classic converted from UNW minus all esUNW Classic vested).

Week of Aug 2: Link Fee Vault with esUNW

With the initial holders of esUNW finalised, it is time to link Fee Vault with esUNW, so that the value of esUNW is linked to the intrinsic value of Fee Vault.

At this time, the intrinsic value of each esUNW is equal to the intrinsic value of Fee Vault divided by the total supply of esUNW.

As noted in UIP-6, this burn upon exit is a key that will drive esUNW value higher (which means more UNW to be burnt!)

Week of Aug 9: Start esUNW emission (including the weekly auction)

With the link established between esUNW and Fee Vault, we will now start esUNW emission including the weekly auction to burn UNW!

Staked UNW will be eligible to share 1 esUNW a day. Another esUNW will be auctioned off to the highest bidder on a weekly basis.

At the end of the week, we will also start esUNW redemption.

This limited supply and emission of esUNW and a requirement to burn UNW to win esUNW are the other key value drivers we hope to see driving both UNW and esUNW higher!

Join us!

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