Tokenomics 📊
Overview of the Backd governance token
Backd governance token distribution is designed to incentivize three distinct stakeholders of the protocol and facilitate their participation in protocol governance. The three stakeholders considered are:
  • Liquidity Providers (LP): L
  • Keepers: K
  • AMM Liquidity Providers: A
THERE IS NO BACKD GOVERNANCE TOKEN YET! In an effort to prevent possible scamming or fake token creation, full details pertaining to the Backd governance token will remain private until at or around token launch.

Inflation Schedule

Initial Supply: 5,368,709
Max Total Supply: 268,435,456 The tokens reserved for distribution to LPs, keepers and LPs of Backd governance token pools on AMMs are released according to a common inflation schedule, i.e., the same inflation schedule applies to their respective allocations. The initial supply of Backd governance tokens will be 2% (5,368,709) of the total token supply. Then, a further 56% (150,323,856) are released according to a perpetual piece-wise linear inflation schedule. In the first year 60,129,542 tokens will be released to the community (LPs, Keepers, AMMs). There-after, the annual inflation rate is reduced by a factor of 0.6 every year. The total token supply will thereby eventually approach 268,435,456. The remaining governance token allocations to early investors etc. are released according to a linear vesting schedule based on the respective vesting periods.

Vesting Schedules

Tokens allocated to the following groups are subject to vesting schedules. Vesting begins immediately upon the deployment of the Backd governance token. Tokens vest on a per-block basis.
Allocation
Vesting Schedule
Pre-seed Investors & Partners
1 Year
Protocol Development
3 Years
Team and Early Employees
2 Years
Community Reserve
2 Years

Reward Distribution

Backd LPs

Backd liquidity providers receive Backd governance tokens in proportion to the share of totally liquidity they supply to the pool. Each pool is assigned a specific pool weight which determines the amount of inflation the pools receives. Pool weights can be adjusted after the Backd DAO is launched.

Backd Keepers

Backd Keepers receive Backd governance token rewards in proportion to the value of top ups they execute. The number of tokens a keeper receives is calculated once per week. These rewards are fully vested and can be withdrawn immediately after they are available.
Keeper's Share of Distribution

Backd AMM LPs

Backd governance token liquidity providers on specific automated market makers (such as UniSwap) receive Backd rewards. LP tokens are staked in the AMMGauge and emitted on a per-block basis.
Fair share of released tokens

Community Reserve

5% of the Backd governance token supply is held in the community reserve (2 year vesting). Reserve funds are accessible via governance and will mainly be used to reward community contributions.
Last modified 1mo ago