SIP#16 - New Tokenomics: veSGT

Authors Oranges

Summary

Introducing a new tokenomic model to the DAO to provide additional utility and value to the SGT token.

Rationale

By providing utility and value to the SGT token, we hope to heavily reduce any “farm and dump” mentality, while supporting the wider community and SGT supporters by allowing them to use their SGT to benefit their staked positions, as well as potentially receiving a yield from SGT itself in the form of DAO fees which could be paid in ETH in the future.

Effect

As published in the discord tokenomics channel, please see below a links which outlines how the veSGT model would work in detail:

Discord publication & discussion: https://discord.com/channels/779046626236563487/824339398182043718/836280825796493332

Detailed veSGT write up: https://docs.google.com/document/d/1DVY_AckNcvjtSsI0ldUGJMYmJPZsxQy90-k1fkOONcs/edit?usp=sharing

Opportunity

• Create utility for the SGT token.
• Create scarcity for the SGT token via locking.
• Provide higher APY’s for SGT holders.
• Make SGT a revenue generating token, potentially in ETH (DAO fee’s)

Risk None identified.