2.P3 Tokenomics 2.0 - A middle ground proposal

Premia Publication Process - P3 Complete
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I’ve edited my original proposal based on some good ideas from the community discussion as well as Dk’s above post.

Detailed google sheet

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Changelog

  • Reduced LM emission rate to 1.2M tokens/year for 4 years.
    This would leave 12 M tokens outstanding that could be used to incentivize liquidity on other products the team might launch. If after 4 years no use has been identified, they could be burned via community vote

  • Blue Descent tokens will now vest as vxPremia locked for 4 years

  • Adjusted “Partnerships/MM” bucket to 10% of supply.

  • “Partnerships/MM” tokens are unvested but cannot be touched unless community votes on it

  • Added a “Marketing” bucket with 1M Premia vesting over 4 years

Rationale

This proposal intends to bring Premia’s tokenomics in line with what are widely considered best practices in the ecosystem:

1. High circulating supply relative to fully diluted valuation

MCap/FDV at start: 0.37
MCap/FDV after 4 years: 0.81

2. 66% or more of supply controlled by the community

This proposal would leave 33% of tokens in the hands of the team and 67% under community governance

3. Low and predictable rate of inflation (<50% YoY)

16M tokens would be unlocked / year
(1.9M would be in the form of locked vxPremia)

Inflation 1st year: 57%
Inflation 2nd year: 36%
Inflation 3rd year: 27%
Inflation 4th year: 21%

4. Simple distribution and transparency about which party controls which buckets

Token burn: 25M tokens

The other 75M tokens would be distributed in the following buckets:

Premia Team: 25M tokens

  • 33% of supply
  • To be used by the Team at their will
  • Vested linearly over 4 years

Liquidity Mining: 24M tokens

  • 33% of supply
  • Controlled by community governance
  • 1.2M tokens would be emitted per year for 4 years (could be changed by community at any time)

Blue Descent: 7.5M tokens

  • 10% of supply
  • Controlled by the DAO governance body
  • Vested as 4 year-locked vxPremia linearly over 4 years

Bootstrap distribution: 10M tokens

  • 13% of supply (All holders would see their share of ownership increased by 33%)

Strategic Partnerships: 7.5M tokens

  • 10% of supply
  • Controlled by community governance
  • Locked unless community votes otherwise

Marketing: 1M tokens

  • 1% of supply
  • Controlled by community governance
  • Vested linearly over 4 years
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