Airdrop Gamified Locking
Last updated
Last updated
Tokens awarded to users in the periodic airdrops are automatically locked, and locked tokens are illiquid. If users wish to sell their tokens and realize financial gain, they have to undergo a 12 week ‘unlocking period’, which begins at the moment of unlocking initiation.
During the 12 week period, tokens are claimable at any time, however depending on which point in time the tokens are claimed at, not all may be made available to the user. For example, if a user does not wish to wait 12 weeks to receive tokens, they may claim them sooner, but will not receive the full amount. The unrealized amount will be confiscated and burned, reducing the total supply.
This percentage of tokens that are unrealized is variable, and varies according to how much time is remaining in the unlocking period. This fee is determined according to the following bonding curve:
If tokens are claimed on the first day of the unlocking period, 50% of the originally locked tokens are taken as the early unlocking fee. If tokens are claimed on day 38 of the unlocking period, 27.71% of the originally locked tokens are taken as the early unlocking fee. The values shown in table format may be observed in Appendix I.
The benefits of implementing these early unlocking fees are as follows:
If token price spikes, lockers are unable to quickly dump their tokens, in order to do so, they forfeit big percentages of their holdings which are burned; thus indirectly redistributing value to lockers
Mitigates dumping when token appreciates in price.
Reduces the power of mercenaries in the network, and awards governance power to those that are more aligned with the mission and vision of Bondex
The implication of this mechanism is profound; it creates a system where mercenary value-extractors actually create a net-positive effect for the rest of the ecosystem and the aligned stakeholders because by forfeiting tokens they are paying a high cost which directly benefits lockers due to the confiscated tokens being burned. This is in contrast to other ecosystems where speculators are more easily able to extract value at the expense of aligned token-holding entities. Via this method, even the non-aligned may add value to the ecosystem
