Dogechain DC Tokenomics Update

Dear Shibes,

The time has finally come to release our $DC token. This will provide the community with an additional incentive to hop onto our blockchain and start using DOGE for more than just holding and trading.

Consequently, the 1 trillion $DC token supply will act as a rewards system for both users and validators, using various holding and staking mechanisms. What’s more, $DC will be essential for making governance decisions regarding the further development of Dogechain.

In these past few months, we’ve been reviewing our tokenomics to find a model that is viable in the long term for users, validators, and the ecosystem itself.

For this reason, we’ve tweaked our token distribution slightly, and more specifically, removed locked staking rewards of wDOGE on the chain. There are two reasons for this:

  • We believe that locking your wDOGE on the chain only benefits whales.
  • It removes the incentive to actually use your tokens and interact with the ecosystem.

Our long-term vision for Dogechain is a genuine platform for deploying dApps where users can plug in their Dogecoin seamlessly. Locking your wDOGE for $DC rewards would defeat that initial purpose of the chain.

Tokenomics tweaks and changes

We had to think of a solution that would benefit everyone involved with Dogechain and wouldn’t impede our promises around staking rewards. For this reason, we made slight changes in the distribution model and removed locked staking for wDOGE altogether.

Instead, we provide a model (Loyal Shibes) that is more akin to liquid staking, allowing people to move their wDOGE as they please without being penalized for it.

To achieve this, we increased the airdrop size from 2% to 12% and broke it down into two categories:

  • Early Shibes Airdrop: 3% of the supply of $DC will be immediately distributed to wDOGE holders. 15% of these tokens will be released right upon token launch, while the remainder will be released linearly over the next 12 months.
  • Loyal Shibes airdrop: 9% of the supply will be distributed as intermittent airdrops following right after the Early Shibes airdrop, during a period of 48 months. This means that 0.1875% of the supply will be distributed to these holders on a monthly basis, 15% upfront, and the rest linearly over the next 12 months.

So, instead of requiring users to stake tokens and locking them up, the protocol will take intermittent snapshots of users’ wallet holdings (random number of 5–15 each month). Then, it will distribute $DC rewards following an average of these holdings over the past month, on the 1st of the next month.

Community allocations breakdown — 58%

Other than that, you might see some other changes from the previous tokenomics as the 60% Airdrop/Community allocation has been broken down into different categories. This should provide a clearer view of the distribution model.

Ecosystem DAO fund — 29%

This fund will act as a community treasury that will be distributed to projects deploying on Dogechain as well as additional rewards for the community. Governance of this fund will be handled through voting by $veDC holders.

Users will be able to obtain $veDC tokens by locking up $DC in the veDC staking model. The user will be able to redeem 1:1 DC for every veDC only after the lockup period ends.

Worth noting is that $veDC cannot be sold on the open market and can only be used as a governance token or for redeeming $DC after lockup ends.

Network Operations — 15% [4 years linear vesting]

This portion of the supply is reserved for validation nodes and rewards distributed to users staking with them. This supply will be rewarded to network validators that stake $DC tokens, as an incentive for securing the network.

At the same time, validators will be able to share these rewards that stake $DC with them, providing a full-fledged staking mechanism for $DC tokens.

Airdrops — 12%

This is the combination of the Early and Loyal Shibes airdrop discussed earlier.

  • Early adopters of Dogechain receive an immediate airdrop of 3% in relation to their wDOGE holdings in their wallets at the moment of the token launch (snapshot taken 24h prior to TGE). 15% of these tokens will be released immediately, while the remainder will be released using a linear schedule over the next 12 months.
  • Loyal contributors receive 9% of the supply over the next 4 years through linear vesting.

Polygon Reserve — 1% [4 years linear vesting]

This reserve of 1% of the total supply of $DC tokens will be rewarded to the Polygon community to show our appreciation for their support. The Polygon Reserve has 4-year linear vesting starting from September 1st, 2022.

RobinHood Reserve — 1%

This supply will be set aside for future Robinhood users who could not immediately withdraw their Doge from their wallets.

Remaining allocations — 42%

The remaining supply of $DC tokens will be distributed as follows:

  • 10% — Contributing team members, 5-year linear vesting
  • 12% — Foundation, 15% upfront with 2-year linear vesting
  • 10% — Treasury, 15% upfront, 2-year linear vesting
  • 5% — Marketing and Advisors, 5-year linear vesting
  • 5% — Initial liquidity and Market-Making — 50% upfront, 50% 2-year linear vesting

Tokenomics Graphic

Dogechain DC Tokenomics Update

Wrapping up

This sums up the token distribution of the $DC supply. You will notice that a large portion of this supply is locked into at least 2-year vesting periods (up to 5), decreasing the initial circulating supply considerably.

This should provide users and the ecosystem with a sustainable financial model in the long term. It’s designed to bolster growth and provide Dogecoin holders with a viable platform to seamlessly tap into DeFi, NFTs, and blockchain games, while at the same time rewarding them fairly for participation on the platform.

Dogechain is bringing DeFi & long awaited utility to Dogecoin. Join the family!

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