The fair launched OBT token
The tokenomics is still a work-in-progress.
OBT is a fair launch token with no investors nor pre-mine. There is a fixed total supply of 21 million OBTs. At the network launch, 2% (or 420,000) OBTs will be released to the DAO for the purpose of creating initial liquidity of a USDT/OBT trading pair in Uniswap. The DAO will fund the trading pair with 420,000 OBTs and 21,000 USDTs, setting an initial price for OBT at 0.05 USDT.
The rest of OBTs (98% of total supply) are emitted daily into circulation over an infinite amount time. The emitting schedule assures that the OBT total supply cap will never be reached. The OBT daily emission quantity is computed as follows.
Whereas
OBTe is the number of OBT emitted by the protocol today. OBTe_j is the number of OBTs emitted on the jth day prior.
P is the OBT price on Uniswap at UTC midnight today.
Rev is the protocol fee revenue from the previous 24 hours. Rev_i is the protocol fee revenue from the ith day prior.
TS is total supply of OBTs, which is 21 million.
C is the total circulation of OBTs (already emitted OBTs).
The emitted OBTs are distributed as follows. The percentages are based on total supply, and hence they add up to 98%.
10% are reserved for the DAO treasury reserved for future development. Those tokens will be locked for one year and then linearly released for a year.
55% are reserved for LP nodes. Only the LPs that have exchange volume in the past 24 hours can receive the reward. The reward is computed based on the volume, and the types of tokens exchanged. The weight for each LP token type in reward calculation is voted by the DAO, and reflects the community’s priorities in promoting certain assets.
15% are reserved as OBT staking rewards. DAO members must stake OBTs in order to earn more OBTs from this pool.
5% are reserved for staking the USDT/OBT LP token from Uniswap. This staking pool incentivizes DAO members to contribute to the Uniswap USDT/OBT pool. Note that the Uniswap LP tokens from the initial 21,000 USDTs / 420,000 OBTs are eligible for staking rewards.
13% are reserved as OBD (i.e., the governance token) staking rewards. DAO members must stake OBDs in order to earn OBTs from this pool.
As we discussed before, the DAO treasury, funded by the protocol fee revenue, has the ability to buy back OBTs and support its price on Uniswap. Since the OBT emission is tied to the protocol fee revenue (i.e, the emitted amount is only 80% of the protocol fee revenue), we anticipate the DAO treasury will have the capability to support an ever-increasing floor price for OBTs.
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