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Tokenomics

Dive into the distribution and minting of the DOM token
The entire Dominium ecosystem has been carefully designed from day one to create long-term, resilient, and appreciating value for the DOM token. There is no token allocation. No VC, no team, no dev, no allocation. There is no treasury of tokens to be sold. Launch tokens will only be sold at the same starting price to the core team as the last community member. These tokens are only available through this liquidity pool, or through the minting via three minting mechanisms. Bonding, staking, and NFT Staking. Bonding rates will only be high the first month or in order to add some sell pressure to the market. Without some sell pressure, DOM value will explode and become unsustainable. We want slow growth. Long-term, bonds will be reduced to ~2%, and staking APY (3,3) will be ~80%. NFT Staking will be the main pathway to ownership of the DOM token. NFT staking will also be the most lucrative for Dominium. In order to receive rewards a Citizen must pay an initial Tuition cost equal to one month of rewards. This fee is paid in USDC and is used to build the treasury and buy/burn DOM. Next, NFT stakers will pay a monthly Tribute fee equal to 10% of their rewards in USDC. This will enforce participation and develop a price floor. Should the DOM price ever fall below 10% of its minted value, citizens cannot spend the money to claim their rewards. Funds from monthly tributes expand the treasury, buy and burn DOM, and pay for development. We opted for minting over a fixed supply because it puts the power in the hands of the community, rather than the core team. Most simliar protocols hold the entire supply in team wallets and divvy them out as seen fit. Ring was a great example of this. Ring's undiluted market cap at their height surpassed 6 billion. Most of those tokens were held by the team. For reference, Strongblock's undiluted market cap is 250 million. In our case, all tokens that ever exist are minted by community members. It's dangerous to mint the millions of DOM early on at a fixed supply held by the team. This gives the perception of a fixed supply, but in reality makes the token more susceptible to a rug pull. Token allocation and distribution will take place via the free-market and protocol mechanics. This is the power of minting, rather than a team holding all the tokens: rug pull is impossible. The treasury grows under four main revenue streams discussed: 1. NFT sales via DOM 2. Tuition sales via USDC 3. Monthly tribute fees via USDC 4. Bonding DOM via LP and others The first three revenue steams work in tandem to create buying pressure. Bonds off-set the buying pressure of DOM and build the liquidity and treasury of Dominium. Fees are in USDC so that the treasury can grow without creating sell pressure. Each of these carefully construed mechanics are set to maintain the upward trajectory of DOM price, along with sustainable passive income for Dominium citizens. Within 24 months, NFT rewards will be reduced from ~300% to ~30% and will receive rewards in tokens other than DOM. These tokens will be from real revenue streams and will pave the way for the most sustainable passive income play in cryptocurrency. Until rewards are reduced, the best use case is to stack. Before Q4 2024, all inflationary mechanics of DOM will be stopped. The distribution before that will determine the future governors of the Dominium treasury of RWAs. Time will continue to pass, the Dominium treasury will grow from revenue streams and LP fees. The treasury will be deployed on assets that appreciate and cash flow. In 10 years, we will have billions of dollars of property paid off and generating revenue. Dominium will only increase in leverage as populations increase and real property become mores scarce. A portion of revenue will always go to buy and burn DOM. DOM will stand forever.
Last modified 4mo ago