$POP Token Economics
Popcorn, DeFi for Good
Popcorn is aiding a revolutionary shift in global systems through accessible DeFi products that align financial wellbeing with positive global impact. Our existing financial system is one of the main causes of inequality today. Popcorn is going to change the rules of finance.
In the next months, the roadmap offers multi-chain curated pools of strategies and DeFi products (on Ethereum, Arbitrum, Polygon, Fantom, Avalanche, Solana). These products generate high yield while also funding community selected social impact and non-profit organizations without any extra costs to the end user.
In 2022, the roadmap includes launching DeFi primitives such as a lending protocol that produces a native decentralized stablecoin which has the extraordinary characteristic of creating impact on a community-wide and global level. How? Just holding it supports non-profits and public goods; that’s something that can’t be said of the dollar or any stablecoin in existence.
Popcorn bakes social and environmental impact into the very foundation of the protocol through its extractive and composable DeFi primitives and products where basis points are used to fund social impact and non-profit organizations.
Members of the PopcornDAO, or $POP token holders, are stewards of Popcorn and share the common long-term goal of fueling the growth of the protocol, decentralizing the organization, and nurturing the mission of driving social impact for the public benefit in perpetuity.
Token Economics
$POP is a governance token that aligns incentives across all stakeholders including users, $POP token holders, non-profit beneficiaries, the core team, advisors and partners. Below is the distribution of the $POP token:
Total $POP Supply: 100,000,000
Circulating Supply 13/12/2021: 3,116,850.00
$POP Ecosystem refers to the total amount of tokens reserved for liquidity mining, incentives and grants. These incentives and grants are specifically for users of Popcorn’s DeFi products, and those who make valuable contributions to the protocol.
Early Contributors refers to supporters who funded development and operations to build out Popcorn.
Team refers to core contributors.
Partners/Advisors refers to organizations and individuals who help Popcorn develop and evangelize the product and vision.
Foundation refers to the organization committed to bootstrapping the development of the Popcorn smart contracts, driving decentralization, onboarding non-profit beneficiaries, and ensuring the values of the Popcorn Foundation charter are upheld by all beneficiaries.
Liquidity Bootstrapping Pools refer to the liquidity bootstrapping pools (LBPs) for the $POP token. The intention is to bootstrap liquidity on decentralized exchanges through a fair launch auction mechanism. These pools will be launched simultaneously on Ethereum and Polygon. This is the first opportunity for the general public to buy $POP to participate in the governance of the network and for the opportunity to operate keeper nodes. Proceeds will be split between the Popcorn Treasury, a smart contract entirely controlled by Popcorn token holders, and the liquidity pools on decentralized exchanges like Uniswap and Sushiswap.
Airdrop refers to $POP token transfers for further decentralizing and rewarding the Popcorn community.
Curated Pools & DeFi Products
Popcorn creates yield-generating DeFi products that offer competitive returns on crypto assets. At launch, users’ stablecoin deposits will be automatically pooled and allocated to other high-performing DeFi protocols to optimize returns. In the future, Popcorn users will be able to deposit additional crypto assets into automated asset strategies, reducing complexity for the user and making Popcorn’s DeFi products more accessible.
First Product to Market — Butter
DeFi is Better with Butter
Butter is a basket of wrapped yield-bearing stablecoins made with DAO treasuries and gas-conscious users in mind. It has the following features:
- Deposit USDT, USDC, DAI, and 3CRV
- Target Yield: 20%+ APY
- Yield Volatility: 25%
- Capacity: $500M+
- Fee: 1–3% Streaming Fee
- Equal Weighted Benchmark
The benefit for users is having a tokenized yielding position that is stable in value, accruing aggregated high yield across a diversified basket of underlying stablecoins with reduced yield volatility and eliminated swap fees. This means that Butter holders don’t need to chase yield or actively manage their position. For DAOs, it offers their treasuries a way to grow over time without having to make complex trades or decisions all while being able to contribute to important social and environmental causes in a passive way.
The contracts for Butter have been audited and are available here:
Fee Structure & Sharing
Popcorn has optionality with the fee structures depending on the types of products deployed.
Depending on the exact product, fees can range between 1 and 3%, optional deposit/withdrawal fees would be at or below 50 basis points, lending rates would be variable, and performance fees can be up to 20%. Earned protocol fees are then allocated as follows:
- Beneficiaries: 34%
- Stakers: 32%
- Treasury: 32%
- Carbon Offsets 2%
Full control of how to use treasury funds will come from voting by token holders. Similarly, the exact fee distribution split above will be controlled by token holders.
$POP Buyback
Earned protocol fees are also used to buy back $POP from the market and redistribute to the allocations defined above.
$POP Rewards & Emission Curve
$POP tokens will be earned by users of Popcorn smart contracts, They will be distributed according to the proposed $POP emissions schedule, following the acceptance of the proposal by token holders:
- Start Date: Day 1 after the release of Butter
- Weekly Emissions: 3%
- Vesting: ⅔ $POP rewards vested linearly over 6 months
Staking and claiming rewards in $POP will be live in the following pools following shortly after the completion of the LBP:
- POP (Ethereum)
- POP (Polygon)
- POP/USDC Uniswap LP (Ethereum)
- POP/USDC Sushiswap (Ethereum)
- POP/USDC Sushiswap LP (Polygon)
- POP/USDC QuickSwap LP (Polygon)
Keeper Incentives
Popcorn keepers automate key functions on smart contracts in a reliable, decentralized, and cost-efficient manner. Keeper incentives in $POP rewards are earned by calling keeper functions. Keepers require a minimum amount of staked $POP tokens to be eligible as a keeper. Keepers manage the following:
- Non-profit beneficiary governance contracts: refreshing smart contract state, proposing and finalizing elections
- RewardsManager contract e.g. swapping fees for $POP and distributing fees to stakeholders
- DeFi contracts (e.g. rebalancing, harvesting, staking, swapping, claiming, etc.)
Every time a keeper is paid, 25% of the $POP reward is burned. This parameter is also configurable by token holders.
Carbon Neutral
By virtue of using Popcorn, whether it’s to yield farm, stake, or participate in governance, users will be offsetting their carbon footprint. Popcorn smart contracts allocate a percentage of fees to a diversified portfolio of carbon sequestration and reforestation projects.
You can read more about how Popcorn automates offsets on Yahoo! Finance and Investing.com.
Voting, Locked Staking, and Vote Mining
Token holders participating in Popcorn governance such as beneficiary nominations and grant elections must lock their tokens to receive non-transferable voice credits. The longer token holders lock their tokens, the more voice credits are earned and the greater their claim to $POP rewards. In addition, participating in beneficiary governance also offers token holders a chance to earn even more $POP tokens through “Vote Mining” incentives.
How does $POP perform on ESG dimensions?
A new ESG asset class
People around the world are trending towards allocating significant capital in assets that are socially conscious, sustainable, and responsible. Popcorn has not been created to serve those people, but a protocol and culture have emerged that puts people, the environment, and social responsibility first. The following contains a brief summary of how Popcorn relates to ESG principles:
Environment:
A portion of Popcorn’s fees is directed towards tackling global environmental challenges via smart contracts. In this way, environmental responsibility is encoded into the heart of the protocol.
Social:
Popcorn values diversity, inclusion, and decentralized decision-making. Popcorn contributors are women and men from diverse backgrounds, from all major continents, religious backgrounds, and ethnicities. Not only does the Popcorn culture support these values internally, but through the decentralized beneficiary governance and funding mechanism of the protocol, it ensures that underrepresented and disadvantaged groups have increased access to opportunity through the power of DeFi.
Governance:
The Popcorn governance model is decentralized and is not majority controlled by any one person. It is consistent with a fair and democratic decision-making process and the forthcoming charter outlines the values and inclusive decision-making framework for the protocol and organization.
Conclusion
While the initial token mechanics for the $POP token might be subject to change, the Popcorn team could not be anymore excited to roll out a tokenomic model that aligns incentives, promotes decentralization, helps automates key smart contract operations and works to inspire and ignite positive global impact through DeFi.
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