Locked Liquidity Event - Minutes
Tags: Governance, Ethereum, Blockchain, Contribute, Dao

In order to get everyone up to speed for the Locked Liquidity Event (LLE) we thought wise to create a summary of the events that will be unfolding during and after the event.

The Locked Liquidity Event is set to start at unix time 1609156800 which translates to DEC-28–2020 @ 12:00pm (UTC), from this time on, anyone wanting to become a part of the TDAO bootstrap phase can participate by depositing TRIB to the contract.

The front end will also allow anyone to use ETH during the event. The ETH will be used to buy mUSD in Balancer and the mUSD will be used to buy TRIB from the Contribute contract.

NFT Distribution

Exclusive NFTs will be distributed to the first users who fulfill the minimum deposit requirement for each NFT tier. Below is the amount required to become eligible to receive the different NFTs. More information can be found here.

All NFTs with the exception of DIVINITY will be distributed at the moment of the deposit so there is no need to wait for the LLE event to be over in order to claim them. Since DIVINITY is awarded to the top contributor, it is not possible to distribute it before the event is over.

Final moments

The end time for the LLE is set to unix time 1609761600, JAN-04–2021 @ 12:00pm (UTC). After this time no more deposits will be accepted by the contract.

The moment the LLE is over the function “Lock Liquidity” will become available. This function sends all the TRIB in the contract, together with the 5,000 TDAO supply to a TRIB/TDAO Uniswap pool, establishing the price floor of TDAO which will be: Total TRIB deposited in the contract divided by the total supply of TDAO.

As soon as the deposit in the Uniswap pool is concluded, users who participated in the LLE will be able to start claiming TRIG tokens in proportion to their TRIB deposits. The DIVINITY NFT will also be available to be claimed by the top contributor at this time.

Once claimed, users will have 60 minutes from the end time of the LLE to deposit their TRIG and NFTs into their respective Reward Vaults in order to be eligible to receive rewards.

Trading will start at exactly 1609765200 unix time, JAN-04–2021 @ 1:00pm (UTC). It is important to have TRIG and NFT tokens staked before this time since rewards can start being distributed to these pools soon after trading commences.

TRIG REWARD POOL — 0x0069ca41fd66a0ac174db98c8fedc128c985b5f5

NFT REWARD POOL — 0x76ea2186182e3ec27c2d9c7394b83e5c8f2cf6c4

A third reward pool has also been deployed. This pool will accept TDAO/ETH LP tokens and ~80% of the rewards that belong to the treasury will actually be redirected to this pool in order to help bootstrap TDAO/ETH liquidity.

LP REWARD POOL — 0x1c03d8d79706cd548b643810799e2b7288365c7e

As soon as the LLE is over the front end to interact with these pools will be available on the site. In case individuals want to interact with them directly through Etherscan it is important to first approve the spending of the stake token (TRIG, NFT or LP) by their respective pools and then call the function deposit(_pid, _amount) where _pid is the pool in which you want to deposit and _amount the quantity of tokens to deposit.

For TRIG and the LP pools _pid should be set to zero, and the _amount should be in WEI (18 decimal places), while for the NFT tokens there are 8 different pools from 0 to 7. 0 being for VISIONARY and 7 DIVINITY and the amounts don’t use decimal places.

Fee distribution explained

The initial fee distribution parameters have been set in order to stimulate LLE participation and a secondary TDAO/ETH pool. These parameters can be changed by governance though. So it is important to understand what are the options available and what can be changed by TDAO token holders.

Every transfer of TDAO tokens is subject to transfer fees. The fee can be from 0.1% up to 10% from the transfer amount and can only be changed by governance. The default fee value for the launch of the system is 1%.

The second parameter that can be adjusted is which percentage of the fee should go to TRIG stakers. Because TRIG token holders are the reason TDAO exists and were the first to bootstrap liquidity for TDAO, their share of the fees cannot go below 50%. This is the minimum share of the fees that they will ever get. This is hard coded into the smart contract so the only way to change this is to fork the protocol. TRIG fee shares can be adjusted from 50% up to 90%. The default value chosen for the system is 50%.

It is also important to emphasize that TRIG holders cannot be diluted. No more TRIG can ever be minted and the rewards are hardcoded into the smart contract. They are guaranteed a fee share by the immutable smart contract.

The resulting 50% belongs to the treasury and will be further divided.

Treasury

Currently the treasury share of the fees are further split into 3 parts. NFT Rewards, LP Incentive and Gnosis wallet.

NFT Rewards

Initially, 10% of the funds devoted to the Treasury will be reserved to NFT stakers. After the first month the share will decline by 2% for the next 4 months. This is the decline schedule:

First month: 10%

Second month: 8%

Third month: 6%

Fourth month: 4%

Fifth month: 2%

After the fifth month the treasury will continue to allocate 2% of its share to NFT holders. This value is hard coded into the smart contract and it cannot be changed by governance.

The remaining 90% of the fees destined to the treasury are then allocated for the ETH/TDAO Uniswap pool (90%) and Gnosis Multisig (10%)

ETH/TDAO Uniswap Liquidity Providers

In order to further bootstrap TDAO liquidity and create arbitrage opportunities for third parties, we have decided to allocate 90% of the remaining treasury fee allocation to stakers of the ETH/TDAO LP tokens. These incentives don’t have an expiry date. Governance will have to actively vote to change them.

Gnosis Multisig

The remaining funds will be allocated to a Gnosis Multisig which is 100% controlled by the Governance Timelock contract.

Overview of the initial fee settings

We despise governance theater

As shown in the diagram above, even though the tokens have not been distributed yet, they already control 100% of the governable parts of the system and the Gnosis multisig.

There has been zero allocation of TDAO or TRIG tokens to the team and the team has as much influence in the system as any TDAO token holder.

We will be participating in the LLE along with everyone else.

It is also important to note that the smart contracts have NOT BEEN AUDITED by a third party. We urge participants to take this into consideration before participating.