Alpaca Finance is a fair launch project with no pre-sale, no investor, and no pre-mine. Similar to many fair launch projects, we will reward various participants that help bootstrap our ecosystem. This will be the only way to earn ALPACA tokens.
(Performance fee sharing and buyback & burn)
We will let the community decide how they want the economic incentives to be captured by the ALPACA token ; For example, it could be similar to Sushiswap where x% of fees generated go to perform token buyback and burn. At the moment though, there are already several mechanisms in place for both performance fee sharing and for making ALPACA deflationary in nature.
10% of the 19% performance fees for yield farming positions on the single-asset CAKE vault is distributed as Protocol APR to ALPACA lending depositors.
4% of the 5% of every liquidation bounty that any liquidation bot receives as a fee, goes towards buybacks and burns of the ALPACA token.
10% of 19% of the lending interest that lenders earn goes towards buybacks and burns of the ALPACA token.
Through adding mechanisms like these, most of the rewards from the ALPACA platform will soon be directly or indirectly shared with ALPACA token holders.
Because burn is also a method of fee distribution, only it's more efficient at increasing token price. Burn directly lowers available supply which increases the value of the remaining tokens. Instead of giving out protocol earnings as yields that users can, and often do, dump on the market, through burn, these earnings embed into the token price itself, which discourages selling because users would have to sell part of their principal. This is a more effective way of both rewarding long-term holders, and creating them.
ALPACA tokens are long-term deflationary. Emissions have a hardcap and are continuing to decrease, while burn is permanent and continuing to increase, and we burn quite a bit of tokens; A significant portion of protocol fees go towards token burn: 80% of all liquidation fees and 10% of all protocol lending interest earned by lenders. So as Alpaca Finance continues growing, more ALPACA will be burnt, leading to the value of each remaining ALPACA token rising continuously and permanently.
We will soon launch a governance vault that will allow community members to stake their ALPACA tokens; stakers will receive xALPACA where 1 xALPACA = 1 vote, allowing them to decide on key governance decisions.
Through partnerships, we regularly provide token rewards available only for Alpaca holders in our Grazing Range section.
We are planning to integrate NFTs with actual utility into the platform. Users will have to hold ALPACA in order to benefit from this utility, as well as to gain access to these NFTs in the first place, along with other exclusive items such as real-world Alpaca merch.
87% of our total supply will be distributed to the users of the protocol--a genuine fair launch, with less than 9% of the tokens vesting to the team over a two-year period. Over these two years, ALPACA will be released with a decaying emissions schedule. In total, there will be 188 million ALPACA. To incentivize early adopters, there was a bonus rewards period for the first two weeks.
Below is our planned block reward schedule. Based on it, the circulating supply profile of ALPACA can be plotted. Please note that although it is also monthly like the Stronk schedule, the below schedule advances periods at the beginning of the month, whereas the Stronk schedule does so in the middle of the month.
Please note that the inflation rate drops off dramatically after the initial periods. In fact, the inflation rate will fall under 5% after July 2021.
8.7% of the distributed tokens will go towards funding development and expanding the team, and will be subject to the same two-year vesting as the tokens from the Fair Launch Distribution.
There is an allocation of 8 million tokens reserved for future strategic expenses. These include listing fees, audits, third-party services, liquidity for partnerships, etc. 250,000 of these tokens were used to seed PancakeSwap's ALPACA-wBNB pool. To avoid dilution to token holders, we've also implemented a restriction. No more than 200,000 tokens (~2.5% of the 8 million) can be withdrawn each month, with the only exception being if there is prior approval from a community vote.
ALPACA token address: 0x8f0528ce5ef7b51152a59745befdd91d97091d2f