Tokenomics
The Tokenomics Framework outlines the guidance for protecting the existing tokenomics structure and creates a clear set of guidelines for expanding the tokenomics structure.
Last updated
The Tokenomics Framework outlines the guidance for protecting the existing tokenomics structure and creates a clear set of guidelines for expanding the tokenomics structure.
Last updated
This Framework serves as an extension of the current tokenomic structure and outlines parameters for DAO members to make changes to the tokenomic structure.
$RUG is a pure utility token which means it's specifically designed to be used within the Rug Radio ecosystem. It will also hold future exchange value within the Rug Network on new projects developed by the DAO. $RDAO is generated with the exchange of 1800 $RUG tokens.
Below is the current overview of Rug Radio's tokenomics:
255,000,000 $RUG will be produced over 5 years
$RUG will only be produced by the Rug Radio Genesis NFT (utility NFT)
A utility NFT will yield between 1800-4500 tokens per year (depending on its rarity)
1,800 $RUG can be swapped for 1 $RDAO, and at the discretion of the DAO, can be swapped back once the functionality is enabled
The RugBank also holds a special one of one RugRadio Genesis NFT which yields an additional 10% of the total daily production of $RUG token, which is then used in the ecosystems for hosts, projects and other utilities.
To ensure that the Rug Tokenomics structure is carefully followed and also protected from unnecessary changes, a longer term tokenomics committee will be put in place. The responsibility of this committee is as follows:
Set up a basic monitoring structure for the tokenomics. Including creating a base analysis of the workings and key indicators that can be tracked over a 6 month period.
Review this data and create a basic report on the functioning outcomes of the token structure.
Make recommendations to the DAO on the next steps of review on the structure.
Ensure that any proposals relating to the core tokenomics structure are vetted, tested and analyzed prior to the being put forward for the DAO's consideration.
With the finalization of this Tokenomics Framework and the launch of the RugDAO, the tokenomics of Rug Radio will finally be unlocked as the DAO will be able to put forth utility proposals and vote.
Six months from the implementation of the tokenomics committee and the starting of the analytics, the DAO members will be open to submit proposals that address and/or propose any changes to the core tokenomics structure.
Go through a development, review, and vote process with the Rug Radio Tokenomics Committee
Once this process is completed by the Tokenomics Committee, the Core team will review within 7 business days and submit feedback to the Committee
A finalized draft proposal will be submitted for review by the DAO
The DAO will have 2 week to submit questions & feedback
The Tokenomics Committee will work with the proposers to submit a finalized proposal to Snapshot for a vote
A Core proposal must have a 'YES' vote from 75% of the Core Team, 75% of DAO, and 75% of the Tokenomics Committee
Proposals must be submitted to the Tokenomics Committee, clearly articulate the following aspects of the proposed new structure and include:
Submitted by/wallet - Proposals should be submitted by $RDAO holders
Purpose - What the changes are and why we need them
Rational - Clear data and evidence to support the proposed purpose
Specific Changes - Clear technical breakdown of how the changes would be built, how they would work within the existing structure and how they impact every aspect of the existing Rug Radio ecosystem.
Compliance - How the changes adhere to the current legality and securities laws for the DAO, end users and the core team
Benefits Statement - Clearly demonstrate the measurable benefits of the changes will have on the DAO, Rug Radio token holders, and its members including detailed models
Once all the above criteria has been met in the proposal, it will follow the following formal approval process.
The Tokenomics Committee Review
A SyndicateDAO technical review
The DAO community proposal review process
The Core Team & Committee Final Review
The DAO formal proposal voting process
Tokenomic Utility Proposals can be submitted by $RDAO holders. Proposals serve the purpose to put forth ideas to boost and expand the utility of the $RUG and/or $RDAO token.
Examples of tokenomics proposals might be:
Sponsorships/Partnerships must include the acquisition of $RUG
Hosts will be paid [x] $RUG for all current shows (structure/tiers to be developed by creators committee)
Enabling tipping to your favorite host in $RUG
Create a L2E model and increase $RUG in the hands of users on top earning for holding Rug NFTS
Develop a token bounty program for any KPI: Give a little bit of $RUG when you can show a lot of value to all $RUG
Participation to Earn: Develop $RUG incentives for micro actions that benefit the broad community: sharing a link, submitting a task, proposal, etc.
Proposals should meet the same values and criteria as all other DAO proposals
Proposals should be in alignment with the long term vision of the DAO, Rug Radio and it's members
Proposals should not undermine the existing structure, or its members by creating negative incentive externalities
The Proposal review process would work on the same basis as the Proposal Framework.