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69 changes: 69 additions & 0 deletions tokenomics.md
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# Overview

`COLLAR`(Collar Governance Token) is the governance and utility token in Collar project.

There is a maximum total supply for `COLLAR`: `4, 294, 967, 296`.

Essentially `COLLAR` will be distributed in the following way:

- `50%` for liquidity mining
- `20.3125%` for treasury
- `18.75%` for team members
- `9.375%` for investors
- `1.5625%` for advisors

Here is the overall release plan for `COLLAR`:

> **OUTDATED**
> | year | total supply |
> | ---- | ------------------------ |
> | 1 | about 5.5 million (33%) |
> | 2 | about 10 million (60%) |
> | 4 | about 14.5 million (87%) |
> | 8 | about 16.5 million (98%) |

# Liquidity Mining

`50%` of the maximum supply (`TODO`) will be distributed to liquidity mining. Each round of mining lasts for 6 months and new rounds will be launched every 3 months. The total reward for a liquidity mining round is `7/8` of previous round. and the reward for the initial round is `1, 048, 576` (`6.25%` of the maximum supply)

> **OUTDATED**
> | round | start time | end time | reward |
> | ----- | ---------- | -------- | ----------------------- |
> | 0 | month 0 | month 6 | `1, 048, 576` (`6.25%`) |
> | 1 | month 3 | month 9 | `917, 504` (`5.47%`) |
> | 2 | month 6 | month 12 | `802, 816` (`4.79%`) |
> | 3 | month 9 | month 15 | `702, 464` (`4.19%`) |

the reward will be distributed to liquidity providers of:

- `CALL` and `COLL` pairs

majority of the reward will be distributed to liquidity providers of `CALL` and `COLL` pairs to provide better liquidity and better lending and borrowing user experience.

- `COLLAR` pairs

about `1/8` of the reward will be distributed to liquidity providers of `COLLAR` pairs.

- `COLLAR` single token stake

the rest of the reward will be distributed to Collar governance pool.

# Treasury

`20.3125%` of the maximum supply (`TODO`) will be distributed to treasury.

The token in treasury will be used to airdrop, IDO, bug bounty, insurance and so on to support Collar project. The release speed here is same as above.

# Team Members

`18.75%`of the maximum supply (`TODO` will be distributed to team members.

The `COLLAR` token distributed to team members is gradually unlocked at the end of each liquidity mining round. The unlock token for each round is `7/8` of previous round. and the unlock token at the end of the initial round is `393, 216` (`2.34%` of the maximum supply)

# Investors

`9.375%`of the maximum supply (`TODO`) will be distributed to investors and it is gradually unlocked in the same way we described above.

# Advisors

`1.5625%`of the maximum supply (`TODO`) will be distributed to advisors and it is gradually unlocked in the same way we described above.