Yes, that's it, we hate them. During all these years of interacting with DAOs and protocols around the crypto space, there is something that we truly believe is broken: DAOs tokenomics.

Why? Because most of them are designed in a way with the whole purpose of luring late adopters (yeah, the early adopters are the insiders, not the first public buyers) so insiders can exit their positions with profits... We believe there are better ways to handle this.

The protocol's governance token has a total supply of 120.000.000 and its distribution will last 10 years starting from the first distribution. You can see how the distribution will be in the next image:



As you can see in the image, all of the supply will be for rewarding users of the protocol and this means there won't be public, private, or any other type of sale of the protocol's token. We do this so every user has the same opportunities others have and that means that not even developers of the protocol nor the foundation itself have privileges over others when it comes to that.

The rewards are distributed to those who participate in the Safety Pool or in a whitelisted liquidity pool based on the size of the participation. This distribution is done on a daily schedule and it counts those who have been providing liquidity to any of the options for more than 48hrs* without withdrawing funds from them. This way the protocol only rewards those who are truly helping it.

Every day a total of 32,876 tokens are shared across the options designated by FxDAO for their distribution later.

One of the pitfalls with most DAOs is that they benefit big pockets mostly, this is something that we could say is not a problem because it is the same in the old system... But what's the point in creating a new one if it's not going to fix current issues?

So, FxDAO will implement a combination of a democratic system with a quadratic voting system when we talk about the governance of the protocol instead of the regular "the bigger the number of shares the bigger the voting power". We understand that democracies are not perfect nor the quadratic voting and they can be abused too, but we believe everybody should have fair opportunities no matter the size of their pockets.

We will give more details about this system when the system is near its first release to public... But if you want to see why doing it this way, you can read our newsletter explaining why: A better way to governance in the Stellar network



Important: We won't release the name of the governance token nor any of the stablecoins before the protocol is ready or almost ready, we do this in order to protect users from buying copycats... And no, there won't be a FxDAO token, if you see one with that name on the network, is not from us.