Token Distribution
Type: Loyalty Max Supply: Unlimited Genesis: 20M tokens Burn Type: Transactional (Swaps, Purchases, Deposit Fees, and Buy Backs)
As a native loyalty token on NEAR, Cheddar serves to help foster the growth of NEAR dApps by creating interconnectivity and shared utility through PowerUps. These and other potential utilities are based upon the principles of farming, locking, and burning Cheddar.
Cheddar has an unlimited supply. The circulating supply is managed via the CheddarDAO, burns, and buybacks. Transactions will burn a portion of Cheddar as well as when it is redeemed for specific PowerUps.
Cheddar is farmed when users stake a token or use a dApp associated with the Cheddar Loyalty Network.
There will be many ways to farm Cheddar. The first pools are defined below in Phase 1 and Phase 2.
Genesis Minting
The community board has approved a 20M Cheddar Genesis to bootstrap the Cheddar Loyalty Network:
The FREE Community Farming will mint unlimited Cheddar for 20 days.
2.3M tokens will be minted for the team and community contributors.
Cheddar for partnerships or growth will be proposed on the NEAR governance forum and voted on in the CheddarDAO by the community board before additional Cheddar minting occurs.
Team & Advisors: 2M (10%) - Lockup according to the Phase-0 schedule. team.cheddar.near
3-month cliff
3 months linear vesting (tokens unlock linearly from month 4 till 6 after genesis)
Tokens in the vesting contract are not transferable.
Locked tokens can be used for Cheddar DAO governance voting.
Early Supporters: 300K (1.5%) — contributors.cheddar.near
Cheddar will be minted to a contributor wallet and issued by the team to auditors, community board members, and testers.
Partnerships: 8M (40%) - building NEAR ecosystem.
Cheddar DAO governance will be used to approve and mint tokens as needed. Both the community board and council will have the ability to vote and approve a proposal after a governance post has been submitted and discussed.
DAO Treasury 9.7M (48.5%) — Future use governed by DAO.
Cheddar DAO governance will also be used for the treasury fund to approve and mint tokens on an as-needed basis. Both the community board and council will have the ability to vote and approve a proposal after a governance post has been submitted and discussed.
Farming
We define 2 phases to bootstrap the network and Cheddar supply.
Phase-1 - FREE Community Farming Done by P1StakingPool smart contract.
Functionality:
Stake NEAR to farm Cheddar (Single Stake Farming)
Time duration: 20 Days
Pools: NEAR
Distribution Rate:
Staking 1 NEAR (or 1 stNEAR) for 20 days will farm 1 Cheddar
Cheddar is farmed every minute. Therefore, staking 1 NEAR will farm 0.0000347222 every minute.
Phase-2 -Single Stake Pools & Liquidity Pool (LP) Farming. Done by P2StakingPool smart contract.
Functionality:
NEP-141 Single Staking Pools
Bananas
Ref-Finance
stNEAR
Others
Ref Finance White-labeled Swap
After Phase-2, the Cheddar DAO can accept other staking pools. At that time, we will enter into Phase-3 - Open Farming. A project has to meet the following criteria to join the Cheddar Farm:
Be a part of the Cheddar Loyalty Network.
Use an existing staking pool contract or submit a new one to be approved by the CheddarDAO.
The emission rate has to be controlled by the Cheddar DAO.
Token Funds
The CheddarDAO can vote to create additional token funds to further support the development and adoption of the Cheddar Loyalty Network.
Development Fund - opened through a governance vote and funded by minting tokens via governance (SputnikDAOv2). This will be fully managed by the DAO of Cheddar HODLers.
Token Usage
The primary use of Cheddar is for utility within NEAR dApps, it can additionally be used for governance voting in the Cheddar DAO. All HODLers will vote for approving or disqualifying projects from the Cheddar Loyalty Network. The DAO controls a farming rate for all Cheddar Farming Pools including farms created in Phase-2. The one social condition for a project to be in the Cheddar Loyalty Network is that It must provide a use case and burn function of Cheddar tokens. We discuss a few use cases of token usage in the next section.
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