The supply structure is designed to support the long-term success of the DAO by providing a sustainable and adaptable framework for token distribution, liquidity, and governance.
Starting with the token allocation, $HFD has a limited supply of 1 billion tokens driving utility and value within the HFD ecosystem. Benefits from the successes and/or developments of the DAO will kick back to $HFD in utility or value.
The token allocation is as followed:
Hodl Finance DAO - Token Allocation
Forty percent of the entire token supply is designated for the Bonding Treasury, which will be utilized to gather liquidity for the Market Making and Investments layer. The amount fluctuates, decreasing when someone swaps against the Bonding Treasury or increasing when bought-back $HFD is returned to it.
Thirty percent of the total supply is allocated to the Staking Treasury. The amount of the Staking Treasury diminishes logarithmically, creating an emission schedule similar to Bitcoin. This approach incentivizes early adopters while gradually reducing token rewards as time goes on and token value increases.
Thirteen percent of the complete token supply is assigned to the Team & Advisors to foster the expansion of Core Contributors and subcontractors. This allocation will be used to hire new talent and reward advisors for their significant contributions toward the betterment of the DAO ecosystem.
Ten percent of the token allocation is reserved for the Operations Treasury, responsible for covering the DAO's operational costs, encompassing marketing, legal, administrative, and tax-related procedures. This will ensure the continued functioning of the DAO for years to come and enable it to remain competitive in the rapidly evolving cryptocurrency space.
A three percent allotment of tokens is set aside for Early Backers. As enduring commitment is appreciated, this portion will be awarded to those who have maintained possession of the tokens issued on the Binance Smart Chain for a prolonged duration.
A three percent share of the total token supply is assigned for Launch Incentives. The DAO uses these tokens to support listings and visibility on top-tier exchanges. If the listing efforts do not succeed, the tokens will be reverted back to the Bonding Treasury.
One percent of the total supply is designated for initiating the Liquidity Pool and will be included in the initial liquidity provision for the $ETH/$HFD pool.
HFD's dedication to trading and awareness of emissions is evident in its Tokenomics design, which seeks to incentivize long-term holding and foster early ecosystem adoption.
As part of this strategy, staking rewards are initially significant but gradually diminish over time. Furthermore, a one-year lock-up period for staking rewards exists, enabling the Trading Treasury to amass profits for token buybacks in the open market. The community, as the genuine token owners, can then determine the best use for the repurchased tokens, currently replenishing the Bonding Treasury to attract more liquidity.
Based on the Market Making analysis, HFD is confident in its ability to repurchase emissions annually, potentially even exceeding this target. The ultimate aim is to empower long-term hodlers with suitable rewards.