Tokenomics
The word "Tokenomics" is a portmanteau of the words "Token" and "Economics."
It is the consensus which defines the supply and use-cases of the governance tokens within the various smart contracts of the protocol.
OPTSWAP IS CURRENTLY ONLY IN TESTNET (PUBLIC ALPHA) AND DOES NOT HAVE ANY TOKEN ON ANY MAINNET BLOCKCHAIN NETWORK! BEWARE OF SCAMS AND ONLY FOLLOW OUR OFFICIAL CHANNELS FOR FUTURE MAINNET RELEASES!
OptSwap Governance Tokens (OS*)
OptSwap DAO issues Governance Tokens (OS*) on all the blockchain networks in which it operates. Ownership of OS* tokens grants membership to the DAO on that specific network.
OS* tokens are free-floating and they can be bought or sold on the open market.
The asterisk (*) suffix is a placeholder for the abbreviated name of the blockchain network. e. g. "OptSwap Ethereum" (OSE), "OptSwap Optimism" (OSO), "OptSwap BNB Chain" (OSB) etc.,
Genesis Supply & Distribution
The genesis (i. e. initial) supply of OS* tokens is hard-coded at genesis to 126,230,400 (one hundred twenty six million two hundred thirty thousand four hundred) which is derived as follows:
TODO -- init distribution TBD! (will be based on investor demand)
Maximum Authorized Supply
The maximum number of OS* tokens that are authorized to exist is set to the initial supply at genesis implying that no additional tokens can be minted. However, the maximum authorized supply may be increased or decreased on-chain via the SetTokenAuthorizedSupply Governance Proposal. Note that the the authorized supply cannot be decreased below the current circulating total supply of OS* tokens. Newly authorized tokens do not manifest immediately but are governed by the hard-coded inflation rate.
Inflation Rate
The inflation rate for OS* tokens is hard-coded at genesis to one (1) token per second resulting in approximately 31,557,600 new tokens authorized per year up to the Maximum Authorized Supply (assuming 365.25 days per year). The inflation is defined at genesis and is immutable providing guarantees against.
Minting & Treasury Mint Ratio
Only the Meta Oracle has the authority to mint new OS* tokens. The Meta Oracle rewards OptSwap Miners with newly minted OS* tokens for running critical Price Mining operations, i. e. snapshotting historical on-chain prices and liquidity for the tracked token pairs.
New OS* tokens are minted into the miner's wallet directly as well as the DAO's treasury in the "Treasury Mint Ratio" which can be modified via governance proposals. OS* tokens in the DAO's treasury are uncirculating treasury tokens and they can only be distributed via governance proposals such as airdrops, fundraising rounds or approvals/transfers.
Vote-Escrowed Governance Tokens (veOS*)
The primary use-case of OS* tokens is to obtain voting power within the DAO's governance functions. OS* tokens must be Vote-Escrowed (i. e. locked) for a specified period of time and the voting power obtained is proportional to the number of tokens escrowed as well as the escrow duration. The exact ratios are provided in the table below:
| Escrow Period (in Years) | OS* Escrowed | veOS* Minted |
|---|---|---|
1 | 1 | 0.25 |
2 | 1 | 0.5 |
3 | 1 | 0.75 |
4 | 1 | 1 |
Escrowed tokens cannot be transferred, sold, unescrowed or withdrawn until the full escrow period is complete. After the escrow period has passed, veOS* tokens may be unescrowed and the underlying OS* tokens withdrawn.
Starting the unescrow process immediately forfeits any voting power associated with the veOS* tokens and the underlying OS* tokens are put into a waiting period of 2 (two) weeks. The unescrowed tokens can then be withdrawn linearly over the next 2 (two) weeks after the waiting period is complete.
Other Use-Cases
TODO -- match finder fees are paid in OS* tokens; trading fees rebates for holders; liquidity provider rewards; staking rewards; miner rewards -- price mining, expired order cancellations, settlements execution rewards; other future use-cases or incentives as may be deemed in the best commercial or reputational interests of the DAO.
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