ValiFi Tokenomics (Back-end)
Last updated
Last updated
The ValiFi Engine is the backbone behind the protocol. It aims to show how ValiFi will distribute funds amongst its investments and how it plans to sustain the ecosystem.
For illustrative purposes only. The above blueprint is a conceptual model and is subject to change based on technological requirements as well as the tokenomics behind VALI token. The priority will always be sustainability of the ValiFi ecosystem.
Purchasing YieldBoxes or nodes in other protocols in their native token creates a big issue of massive selling pressure when the treasury wants to invest in other protocols. Due to this, they must sell the tokens received at the creation of a node to be able to invest in other protocols.
We saw it with the RING financial selling bot that was selling around 5 RING tokens every 5-10 seconds. This is because the treasury cannot invest into other protocols to generate money with their native token.
Example:
Let's assume ValiFi was charging for YieldBoxes in VALI token. The VALI tokens will go to the treasury which will then need to be sold to turn it into AVAX, BNB or ETH to invest in other protocols.
This creates massive amounts of selling pressure on the native token (VALI).
This is why ValiFi will charge partially for their YieldBoxes in the blockchain's native coin which will allow the treasury to be able to invest in other protocols without creating selling pressure on VALI token.
While this might slightly decrease the demand for VALI token, the positives outweigh the negatives. This will keep bringing new funds into the treasury, allowing for more buying power and ultimately reducing VALI volatility.
The funds used to purchase a YieldBox is divided into the following:
Value in USDC
4.5 VALI in USDC will be injected into the Public Treasury.
0.5 VALI in USDC will be given to Stable Price Algorithm (SPA).
Value in VALI
4 VALI to the reward pool.
0.5 VALI to the Stable Price Algorithm (SPA).
0.5 VALI to the ValiFi payroll fund.
This distribution will help ValiFi remain healthy and sustainable over the long-term.
As a precaution, the treasury will be operated using a MultiSig wallet for increased security.
Now that the treasury has funds in the blockchain's native coin, it is free to invest them in whatever protocol the community determines appropriate. Further investments in other protocols will be planned to diversify the investment and make it as sustainable as possible, even on red days!
The main goal of the treasury is to build a solid runway and make sure it is able to buy back large amounts of VALI when required. Rewards: 0.1 VALI a day.
ValiFi aims to be here for the next decade. Setting the correct token max supply at the start prevents any need in the future to change the contract or launch a V2 of the token. This is why the VALI token will have a max supply of 5 Million tokens. It will give the ecosystem plenty of tokens to accommodate for all the future token utility and burns, eliminating the need for any minting.
These tokens DO NOT affect price of $VALI, only circulating supply does.
Price is NOT affected by total max supply of the token. It is affected however by the circulating supply.
Circulating Supply is the total number of coins or tokens that are actively available for trade and are being used in the market and in general public.
ValiFi has configured the smart contract of the VALI token so that all wallets owned by ValiFi (Treasury, Reward Pool, etc.) will NOT be counted in the circulating supply.
This action will ensure that the price of the VALI token is not affected by the amount of VALI stored in the treasury or reward pools.
Total Supply: 5 Million VALI
Removing the need for future migration of contract.
Reward Pool: 1 Million VALI at launch + 2.5 Million Vested over 25 Months.
Vested coins if not needed will be burned.
Also used for future utility like staking.
Liquidity Pool: 8,888 VALI + 400,000 Dollars in USDC.
Liquidity Manager: 8,888 VALI + 400,000 Dollars in USDC.
Launch price of $45
Reserves for future Liquidity, SPA, Staking: 482,224 VALI + 1 Million VALI Vested over 25 months These tokens will be used to add to liquidity in future if necessary, if not burned.
The initial locking period for liquidity is from launch until the 1st of January, 2024. After that period liquidity will be locked again for 3 years and repeated after every expiration.
The ValiFi team will be creating services using the development funds to generate more revenue for the treasury. You can find the services planned under The ValiFi Ecosystem:
