OBD token and governance
Last updated
Last updated
The tokenomics is still a work-in-progress.
There are 1 billion OBDs in total. The OBDs will be distributed as follows.
35% will be sold to investors in private and public sales.
15% are reserved for the DAO for community operations. These OBDs will be linearly unlocked over 4 years.
13% are reserved for bounty rewards.
2% are reserved for liquidity management for market makers.
35% are reserved for the team. Those tokens will be locked for 2 years with a 2-year linear releasing schedule.
A DAO member or an LP node can stake its OBDs in a smart contract. Staked OBDs cannot be moved or traded. OBDs can be staked for 1 to 4 years. The stake owners will get veOBDs during the staking period as proof of staking. The longer the staking period, the more veOBDs the owner will get. For example, staking an OBD for 4 years will result in 4x veOBDs than staking for one year.
The most important use of veOBD is to vote on DAO governance proposals. As we have seen, the OBT token emission and distribution, and the use of funds in the DAO treasury are all determined by the DAO. Stakeholders in the Obridge ecosystem can propose changes to these mechanisms and parameters. The proposals, once accepted, will be implemented by the DAO developers in the Obridge smart contacts and nodes software. Only veOBDs can propose and vote on governance proposals.
Obridge DAO voting guideObridge DAO proposalsThe OBT rewards reserved for staked OBD owners will also be distributed based on veOBD balances in each address. That aligns the incentives between OBD holders who determine how to spend the DAO treasury and OBT holders who participate in the DAO ecosystem.
A second use of the OBD token is to signal one's trustworthness to other members of the ecosystem in order to attract more business.
An LP (liquidity provider) node can stake OBDs to improve its ranking in the relay. When all else is equal (i.e., exchange rate), the Obridge relay prioritizes LP nodes based on veOBD balances when it matches and selects trading counterparties for users.
The maximum transaction size a node can accept would depend on its veOBD balance.
However, if an LP node cheats (e.g., unable to complete a transaction it has responded to), its staked OBDs and corresponding veOBDs will be burnt.
In other words, LP nodes with more staked OBDs would see more trading volume and receive more OBT rewards.
