The protocol funds itself and its ecosystem entirely through fees. There is no team allocation of tokens. As the protocol grows, it accrues fees, and these are distributed to the ecosystem fund & development team.
There is no “schedule” of token emissions. All tokens are created through usage of the protocol, and scale accordingly.
There are several fees in place, used as incentives to balance the economic interests of parties.
Trading (paid in ANA). When buying or selling ANA on the spot market, a small fee is collected. Initial value: 0.1% for buys, 0.3% for sells.
Unstaking (paid in ANA). When unstaking ANA, a fee is collected. This is to incentivize long-term staking to gain enough prANA rewards to balance the fee. Initial value: 0.5%
trANA contract purchase fees (paid in ANA). When purchasing trANA contracts, a small fee is collected from the face value of the ANA. Initial value: 0.2%
NIRV loan origination (paid in NIRV). When taking out a NIRV loan from locked ANA, a one-time flat percentage fee is collected from the total allowable NIRV. This fee is large in order to disincentivize over-leveraging of NIRV loans with ANA purchases. Initial value: 3%
Ecosystem Growth Fee (paid in prANA). The protocol mints an amount of prANA in proportion to net supply of ANA. This dilutionary fee is designed to scale with the health of the protocol. As more ANA gets minted, the same proportion of prANA is created. In times when ANA is being sold back & burned, no prANA is generated. Initial value: 8% of net ANA
These fees solely fund the protocol & its ecosystem operations. There are no “protocol tokens” that are portioned out to team members, insiders, or investors.
The Ecosystem Growth Fee (all in prANA) is used to fund prANA emissions on secondary markets & protocols. For example, prANA reward emissions for providing liquidity to a SOL-ANA pool on Raydium would be funded through these fees.
By redirecting the prANA from the protocol to external markets, the accounting for emissions becomes very straight-forward and scalable.
The prANA emissions to stakers is itself a fixed proportion of the global supply of ANA. This schedule of prANA scales with the supply of ANA. For example, 0.5% of the current supply of ANA is created as prANA every day.
These stakers rewards go entirely to stakers.
A portion of this prANA is now deployed to incentivize activity on other protocols. For example, adding liquidity to AMMs, or depositing ANA in Solend. This way of rewarding (or “bribing”) involvement with other projects scales with the usage of Nirvana.
The Ecosystem Growth Fee is a flat rate of net ANA produced. It scales with the total supply of the protocol. This approach ties the rate of prANA emissions to the actual magnitude of the protocol, rather than putting tokens on an arbitrary timetable schedule.
Fees from trading, trANA, and NIRV loan origination go to the funding the development team, marketing, content-creation, and bug bounties. These fees are paid in NIRV & ANA, and are not suitable candidates for emissions elsewhere.
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