Total Supply & Emissions
The ABI token does not inflate to reward those who are adding value to the protocol. It is a deflationary token which removes itself from circulating supply thus rewarding the holders or stakers of ABI passively.
Total Supply: 10 million
A total of 10 million ABI can ever be minted. Once the supply runs out there will be no more issued and staking rewards will henceforth be paid in OHM or any other underlying currency or if not needed, completely stopped. The buy and burn mechanism will still remain in place.
Emissions:
We are working on an emissions and APY structure, but keep in mind that while ABI will offer an APY much like other protocols, its treasury holdings are also rebasing at the same time to ensure it maximizes the amount of OHM it has in its supply. Holding OHM guarantees ABI a floor in times of market volatility.
Emissions vs Burn vs Total Supply
In our proposal we have 10% of the treasury used to buy back and burn ABI in circulation. This rewards stakers into the system and secures the longer term viability of the system. It also rewards our lending pools, partners and other core services that rely on ABI to function.
10% of treasury & 100% of partner revenue profits will be used to buy and burn the ABI token. This may change slightly once the DAO meets for its policy meeting, there is discussion to reduce partner profits to 80% when buying back.
As ABI is burnt and removed from supply, the circulating supply goes down, this allows the APY to remain higher as compared to other protocols as long as emission threshold are not met.
Last modified 1yr ago