Tokenomics
The native token of the Droid|DAO, $DROID, is a decentralized utility-based token that unlocks access to opportunities that are not typically available to all market participants.
$DROID
$DROID token is the Project's utility token and is the vehicle via which members will access DROID's utility. As the DROID|DAO expands and in-house teams grow in capacity and reputation, we expect many service-based utilities will be offered that can be consumed via $DROID.
@benthebape (Droid Capital OG, GoldPantherDAO, author of $BUILD's tokenomics and approximately 20 other tokenomics papers) led $DROID's tokenomics design. @benthebape is independent of the Droid Capital founding team.
Our token flow deliberately favours NFT holders. The founding team has not been provided with a token allocation and will only receive token distributions via their NFT allocations.
Staking
28.5% of supply, Daily Distribution
Droid|DAO NFT holders are differentiated from $DROID holders by their access to the DAO. NFT stakers are rewarded with passive emissions of $DROID, which is intended to be a measured quantity of free utility provided to NFT owners. The longer a NFT is owned and staked, the more tokens that are emitted to a holder.
Given that there is no team token allocation, staking is the only vehicle through which tokens can be acquired passively. This allocation has been calculated to account for all NFT emissions from the launch of the genesis collection. At the end of every quarter, any extra tokens not redeemed (per our draft emission schedule) will be rolled directly into the DAO reserves before the next quarter emission allocation unlocks.
If this allocation proves to be insufficient for any given quarter, additional tokens can be accessed via DAO Council discretion from the reserve allocation. The founding team will have no control over the $DROID token emission schedule.
Governance
14% of supply, Fixed Intervals
As detailed in the governance section, $DROID will be exchangeable for $veDROID*, the token used to participate in our governance protocol. This allocation has been calculated to account for the forecasted quantity of tokens needed to satisfy the demand for governance protocol participation incentives. Prior to the release of $veDROID, governance will be conducted via NFT ownership.
Private and Public Sale
9.5% of supply combined, 3-6 Month Cliff, Monthly (Private Sale), None (Public)
Droid Capital is planning for multi-year operations and hopes that Droid|DAO will have the ability to raise funds via future-dated private and/or public sales. While we have planned token allocations for either modes of fundraising, the future Droid|DAO council will vet all terms carefully and plan for ideal execution dates.
Given our long-term roadmap, we are not in a rush to enter the project into unfavorable positions.
We have allocated a portion of $DROID for private sales with the option of multiple funding series in order to scale Droid|DAO’s operations and headcount. Droid|DAO has already begun growing a strong in-house development team.
As Droid|DAO expands and in-house teams grow in capacity and reputation, we expect many service-based utilities will be offered that can be consumed via $DROID.
Details regarding when, and if, either of these sale rounds occur will be provided at the relevant time.
Droid Capital’s founders will not receive any allocation, or return, from these future sales. All benefits will be accrued by Droid|DAO.
Advisory & Partnerships
23% of supply, 3-6 Month Cliff, Monthly or Quarterly
Droid|DAO will seek to establish a strong and experienced leadership group to serve as a board of directors. These participants will be elected from verified NFT holders and may be compensated with $DROID to incentivize their contribution to Droid|DAO.
Partnerships are envisaged to take many forms and may include marketing services, $DROID buyouts or $DROID token swaps as described in the Partnerships section. Compensation to advisors will follow a linear emission schedule whereas partnerships will be approved on a case-by-case basis via Droid|DAO’s governance structures.
*There are currently no outstanding agreements in place of this nature. This token allocation is held by Droid|DAO
Reserves
25% of supply, Quarterly
The reserve allocation will be available for Droid|DAO to use flexibly and to enable future roadmap utilities that are currently unplanned. It will also be used to bridge gaps in quarterly allocations for other operational purposes, as detailed above, based upon DAO governance discretion. The reserve allocation will be released for project usage on a quarterly basis to ensure reserves exist for the entire tokenomics plan duration.
Should demand for Private and/or Public Sales exceed the levels outlined in this document, the DAO will have the option to use addition tokens from the Reserve supply in order to satisfy this.
Droid Capital is planning for multi-year operations and hopes that Droid|DAO will have the ability to raise funds via future-dated private and/or public sales. While we have planned token allocations for either modes of fundraising, the future Droid|DAO council will vet all terms carefully and plan for ideal execution dates.
Given our long-term roadmap, we are not in a rush to enter the project into unfavorable positions. The project’s leaders will actively work to deliver increasing utility as we engage in raising; by having proven outcomes, retaining an engaged community, and by introducing products or platforms, Droid|DAO will put Droid in a favorable position in future negotiations.
We have allocated up to 60M $DROID for private sales with the intention to allow multiple funding series in order to scale Droid|DAO’s operations and headcount. We anticipate Droid|DAO will grow a strong in-house development team to build next generation platforms to facilitate future utility instrumentations.
This may include token swaps, token allocation auctions, VC position offers, NFT WL or pre-mints, and any other utility provision able to be offered in $DROID. As Droid|DAO expands and in-house teams grow in capacity and reputation, we expect many service-based utilities will be offered that can be consumed via $DROID. These may include, but will not be limited to, services such as business and strategy consulting, tokenomics design and advisory, and NFT design services.
Utilities offered to token holders are gated within the $DROID ecosystem, not behind NFT ownership. Ownership of one or more Droid Capital NFTs provides access to increased rates of $DROID emissions and therefore greater access to DAO activities. The ownership and staking of Droid NFTs will give holders access to $DROID and our governance protocol.*
*The governance protocol built on $DROID / $veDROID* will be leveraged to elect leaders within the DAO and vote directly on important proposals. NOTE: Governance is currently managed via NFT ownership. We plan for it to be replaced by $veDROID once this tech is available to the DAO. [Subject to DAO acceptance. Not expected before late 2022].
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