💰Tokenomics
$DRACO Token Initial Distribution Plan
We are excited to unveil the initial distribution plan for the $DRACO token! With a fixed max supply of 100 million $DRACO, this plan is designed to establish a sustainable ecosystem that rewards contributors and participants. Additionally, each $DRACO sell, will incur a 5% fee, ensuring that the supply of $DRACO will only decrease over time.
Token Allocation
$DRACO will be distributed as follows:
IDO Allocation (30%):
Total: 30 million $DRACO
The IDO will be divided into 2 phases, selling a total of 30% of the tokens. Only users on the whitelist can participate in the private phase, where the price is 20% cheaper than the list price. In the public phase, everyone can participate, and the price is 10% cheaper than the list price.
All tokens sold in the IDO phase will be 100% unlocked at the time of the TGE. Of these, 75% will be issued to users as $DRACO, and 25% will be issued to users as $uDRACO. uDRACO is staked DRACO, which can be unstaked immediately, but a 1% unstake fee will be charged. This fee will be distributed entirely to the remaining staked users. In addition, users who stake will also receive the tax revenue from all DRACO sells.
Liquidity Mining (40%):
Total: 40 million $DRACO
Starting with a distribution of 2,008,000 tokens in the first week, the amount decreases by 5% each week, continuing for a duration of two years.
MultiSig POL (10% Locked as Market Maker)
For an order book exchange, sufficient liquidity is the most crucial factor. Therefore, we will use the 30% ETH collected during the IDO and a total of 10 million $DRACO as POL, serving as market makers to provide liquidity for the order book. The logic of POL market makers is as follows:
Sell orders will be deployed in batches at a price level 5% above the current market price, with a 5% interval between each batch.
Buy orders will be deployed in batches at a price level 5% below the current market price, with a 5% interval between each batch. At the 11th interval, all 50% of ETH will be deployed as a buy order to support the price and ensure price support.
A portion of the protocol's revenue will also enter the POL market maker account to support the continuously rising RFV together with the sales tax.
The POL wallet will temporarily be managed by a multisig wallet , We will announce the specific members of this multisig, which mainly includes the Draco Team and some of our reputable partnerships for now. Later, eligible uDRACO community holders will be selected to join the multisig and this will be publicly announced. All addresses joining the multisig will be announced 7 days before they are actually implemented.
Ecosystem Fund (10%):
Total: 10 million $DRACO
These tokens will be linearly unlocked over a timeline of 2 years and allocated to incentivize contributions to the ecosystem, including community contributors, KOLs and other key participants.
This fund will be totally under control of Draco DAO
Team (8.8%):
All tokens allocated to the team will be distributed linearly over 2 years. This ensures that the team's interests are highly aligned with the long-term interests of the protocol itself.
Airdrop ( 1.2% )
All user addresses that participate in the airdrop event and meet the criteria will receive a DRACO airdrop. The airdrop will have a lock-in period of one month.
Use of IDO Proceeds
The Ethereum (ETH) raised during the IDO will be allocated as follows:
Initial Liquidity (30%): A quarter of the ETH raised will be used to provide initial liquidity for $DRACO.
Research and Development (30%): This portion will be invested in ongoing research and development to ensure the continuous improvement and innovation of our platform.
Marketing and User Acquisition (30%): To grow our community and increase adoption, 30% of the proceeds will be used for marketing initiatives and user acquisition strategies.
Emergency Reserve (10%): A reserve fund will be established for emergencies and unforeseen circumstances. This ensures that our project can manage risks effectively.
By implementing this initial distribution plan, we aim to create a robust and thriving ecosystem around the $DRACO token. We believe that through this careful allocation, we can empower our community and pave the way for the long-term success of our platform.
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