Initial Network State
Our initial goal is not to find a stable price. Euphoria is designed to allow fine tuning protocol mechanics to optimize for different goals. Initially, the main tradeoff is volatility and profitability versus stability and consistency. As growth is the primary objective in the early stages, volatility and profit is exactly what is desired.
With the ability to fine tune a tight policy and scale, Euphoria should function well as a stable asset. Buying and selling pressures would stabilize at a market determined value. If a looser policy is implemented, regardless of scale, Euphoria has the ability to generate tangible wealth. The market premium of the token measures the positive sum of the game; all extrinsic value is new wealth created.

Alpha State

The initial network features a one-way treasury (money goes in, none comes out), the bonding contracts (through which supply increases and profits are produced i.e minting), and the staking contract (where profits are then distributed to stakers).
The following are the initial policy states:
  • BCV - BCV varies based on bond types . It is tuned regularly by the VenomDAO Policy team to meet the protocol's goals. For example, if the protocol wants to accumulate more liquidity into its treasury, it can lower the BCV for allowing users to mint WAGMI with LP tokens to increase their bond capacity.
  • Bond vesting term - Bonds are set to a fixed 5 day vesting period.
  • WAGMI distribution - Every time someone purchases a bond, the proceeds will go to the Euphoria Treasury. A corresponding amount of WAGMI will be minted and distributed to three parties:
    • Bonder/Minter - The Bonder will receive the quoted amount of WAGMI minted linearly over the vesting term.
    • DAO - The DAO receives the same amount of WAGMI as the minter. This represents the DAO profit.
    • Stakers - After accounting for the WAGMI distributed to the minter and the DAO, the rest will be distributed among all stakers in the protocol.
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