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Locus.FinanceLocus.Financeby0x2aDd55d0E962107D7e7a434610f12957d6f038310x2aDd…3831

What supply better suits Locus token?

Voting ended over 2 years agoSucceeded

NOTE The subject of this vote is the maximum supply of the Locus token. Please also review other ongoing votes regarding Locus Tokenomics. The full document with tokenomics description is located here: https://docs.google.com/document/d/1b3K_TzRx4L3fr3AW_yQdFYV240XVaqXFyS83DmNthiM/edit

INTRO The maximum supply of a cryptocurrency refers to the maximum number of tokens that will be ever created. The result of this vote will affect the APR of the Locus token, the volatility of the token and other key points that will be elaborated below.

What supply better suits Locus?

  • Low emission rate in case of 10 mil Locus tokens. The 10 mil supply has a limited amount of tokens that DAO can manage through incentive, but reaching an average APR of an extra 6-10% APR in Locus for vaults. Based on calculations, for 1 Locus token spent on emission, the DAO can potentially generate 25-40% of its value back to the treasury through fees. Additionally, the Locus staking is reaching 10% APR at max, which gives 8-12% APR on average with revenue share. The calculations can be found in the sheet below. https://docs.google.com/spreadsheets/d/1oe0x6gqDcLeygR_IAiv90iJ4_nq-UbfNu3dk4fH07bk/edit?usp=sharing
- Medium emission rate in case of 15 mil Locus tokens.
The 15 mil supply option has higher emissions, giving more space to market Locus products through extra APR. In this model, the extra APR in Locus for vaults can reach up to 15%. It is a more aggressive model that should add more volatility to the token but can help us reach our target values of 50 mil TVL in vaults rapidly to start generating revenue for Locus holders, making its instrict value higher. The Locus staking APR is reaching 20% in Locus tokens, which will favour long-term holding at the cost of liquidity.
The calculations can be found in the sheet below.
https://docs.google.com/spreadsheets/d/1LGjXf2Uy2IIXB8FwOilFfF_66aBUmGFvIuEE2Dpld_E/edit?usp=sharing

SUMMARY 10 million supply = low APR, steady growth, low dilution of supply, fewer tokens to manage by DAO. We will not be able to launch aggressive TVL campaigns, but growth will be organic.

15 million supply = the possibility to turn on high APR for any of the products, high APR for Locus staking, higher token volatility, and requirement for additional liquidity incentives.

It is important to say that DAO will be able to vote for the allocation of every token emitted, so it can be adjusted on the run and based on the market situation and protocol health.

Off-Chain Vote

Low emission 10 mil supply
135.97K MIDAS23.3%
Medium emission 15 mil supply
447.23K MIDAS76.7%
Abstain
0 MIDAS0%
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Timeline

Sep 12, 2023Proposal created
Sep 13, 2023Proposal vote started
Sep 20, 2023Proposal vote ended
Oct 26, 2023Proposal updated