$POP is a governance token that aligns incentives across all stakeholders including users, $POP token holders, beneficiaries, and the team. It is also the native token being offered as a reward for participating in Popcorn’s liquidity mining program, where users provide capital to the protocol in return for $POP.
Abstract :
Liquidity mining, or “yield farming,” is a method of provisioning liquidity, where users are rewarded with tokens rather than purchasing tokens. This is important for several reasons:
Distribution to both institutional and retail investors allowing both an equal chance of owning the $POP token.
Incentivized governance - Early adopters who collectively own the protocol are motivated by the upside and thus have a higher proclivity for community engagement to help Popcorn succeed.
CAC - LM’s bring in capital from users as well as the users themselves.
TVL - More capital means more value locked in contracts, Popcorn’s primary objective.
Motivation:
$POP tokens will be made available to be earned by Popcorn users who use Popcorn smart contracts for the above reasons, and will be distributed according to the proposed $POP emissions schedule under Specification.
Specification :
Start Date: Day 1 after release of first product
Weekly Emissions: 3% reduction in the $POP Ecosystem supply
Vesting: ⅔ $POP rewards vested linearly over 6 months
Vested rewards may discourage users deploying capital when compared to other LM opportunities as farmers are interested in upfront rewards.
Response
After examining the success of previous LM programs with similar vested reward schedules like SushiSwap, while prioritizing quality liquidity for farmers who plan to hold and engage with the community, the proposed vesting schedule is optimal for Popcorn and its users. The token design works best to help incentivize protocol liquidity while protecting early adopters and token holders.
Vesting is find. Or we can have the option like Gro Protocol did and it seems successfull. Users can have the option to vesting the rewards from Liquidy Mining for 6 months or get can get 10% the rewards instantly and give up the rest 90% rewards. These 90% rewards are distributed to diamond holders who are vesting for 6 months
I am 100% in favor of this model. There are several factors early stage projects need to consider IMO. 1) Making the platform attractive to users who are essentially taking a risk by providing early liquidity. We need to reward risk takers. 2) Supporting token price so that the it benefits both the APR of the offered yield and supports the value of the treasury in the early stages. 3) Give the devs time to continue demonstrating value by building out the platform.
You can attack the above task in any number of ways, all with potential positives and negatives. I think the best option is the one laid out in the OP. Vested rewards have been proven to work and its not a coincidence that Sushi price peaked right before they stopped using the vesting model. Using my above “trilema” vesting tokens seems to tackle all three potential issues fairly well.
The high early emission curve, albeit partially vested, creates attractive APR’s for farmers.
Token price is supported because of the vesting so the initial parabolic offering of farmable tokens is mitigated to an extent.
By vesting the tokens for 6 months it gives the team ample time to demonstrate the true value of the platform so that as unlocks are able to occur, there will be far less incentive to dump the tokens.
All in all, very much in favor of this model as I have seen it work before.
Also feel that the vesting is beneficial. it may take longer to grow the LP pool , but you do screen out speculators and target more users that are actually interested in popcorn
I too think vesting is beneficial, to create alignment between token holders and the protocols vision.
A model I also really like is the olympus DAO model, which would also make way for the protocol to own the liquidity out there in exchange for the POP token that is distributed. They actually created this as a service, I am sure if we would want to explore that route we could ask them for some advice / help
