Token Supply & Distribution
No tokens will be minted in V0 of Sacred. We want to make sure our product runs as smoothly as possible before we introduce the token to the core tech.
$SACRED has no financial value. $SACRED provides users with the opportunity to participate in the protocol's governance. $SACRED holders will be able to create and vote on Sacred Improvements Proposals after the launch of Sacred DAO.
The total supply of 1 Billion $SACRED will be distributed:
The airdrops will be allocated to early contributors to the protocol as well as to generate awareness of Sacred Finance. The majority of the tokens will be allocated to users helping to build the Sacred ecosystem. The following is a list of programs for community members to participate in to receive airdrops.
- 1.Feedback Bounty Program
- After testnet launch, we will run a feedback bounty program. This bounty program will be specific to users providing inputs on UI/UX ideas, insightful plans on how Sacred can evolve, and partnerships introductions and implementations.
- 2.Early Contributor Program
- Individuals who help out with design, Strategy and Policy, marketing, community building and more initiatives that contribute to the Sacred ecosystem can earn ownership of Sacred.
- 3.Trusted Setup Ceremony Participants
- 4.Airdrop for Marketing and Awareness
- We will be airdropping to users to create awareness of the Sacred ecosystem. More details of the airdrops will be mentioned closer to the mainnet launch.
Sacred users should have a say in the governance and evolution of the protocol. Incognito Mining is an incentive program that rewards users based on the duration and the size of the user's deposits. Users who lock their tokens on Sacred, will not only earn yield from our lending partners but also earn $SACRED. This will not only incentivize users to lock their assets into Sacred but also increase the anonymity set of each Sacred Box which further increases the privacy of the users.
Sacred will be using bonding as a way to increase token liquidity. As illustrated in many protocols, liquidity mining is a way for mercenaries to quickly pump and dump the tokens. As an alternative solution to bootstrap liquidity, Sacred will be selling discounted SACRED in return for LPs from Sacred liquidity miners. This will allow the Sacred protocol to own its own liquidity and it also creates a new source of revenue from its trading fees, which will feed into the Sacred Treasury. If you want to know more about how Bonding works, please read Olympus DAO's explanation of how bonding works.
The Liquidity Provision deals with the IDO and bootstrapping the initial token liquidity.
As mentioned in the anonymity set section, increasing the TVL and volume of transactions is the way to increase the level of privacy for a mixer like Sacred. In order to do this, we are putting in place an incentive mechanism for users who stay in the protocol for a longer duration. We will add an extra allocation to the incognito mining every 4 months to incentivize users who had accumulated more Incognito Credits (IC). Those who have more ICs will be able to redeem more SACRED!