LiSuify

Lisuify Tokenomics

Introduction

This document delineates the tokenomics of the two central tokens in our ecosystem: the liSUI, a liquid staking token, and the LSF, a governance token.

1. liSUI Token

1.1 Overview

The liSUI token is a liquid staking token with 9 decimals, akin to the original SUI token’s structure. It is backed by staked SUI objects, signifying a stake in the underlying assets and facilitating participation in the DeFi ecosystem.

1.2 Token Details

  • Decimals: 9
  • Backing Assets: Staked SUI objects
  • Utility:
    • Representing a stake in the staked SUI assets
    • Facilitating participation in the DeFi ecosystem
    • Can be used in various financial products and services within the ecosystem

1.3 Value Proposition

  • Liquidity: Provides liquidity to staked assets, allowing users to participate in the DeFi ecosystem without unstaking their assets.
  • Earning Staking Rewards: The liSUI token appreciates in value as it earns staking rewards, with the price dictated by the contract, offering a mechanism to exchange SUI to liSUI and vice versa.
  • Integration with DeFi: Enables seamless integration with various DeFi products and services, fostering a vibrant and dynamic ecosystem.

2. LSF Token

2.1 Overview

The LSF token is a governance token with a constant supply of 1 million units, functioning on a custom protocol and central to the decision-making process within the new DAO contract that is in the planning stages.

2.2 Token Details

  • Decimals: 9
  • Total Supply: 1,000,000 LSF
  • Utility:
    • Central to the governance and decision-making processes within the DAO
    • Facilitates community engagement and participation in protocol development
    • Not intended for speculative trading or investment, and lacks store capability, preventing its use in DeFi platforms by design

2.3 Transferability

  • P2P Transactions: LSF tokens can be transferred and traded peer-to-peer, but only from wallet to wallet, maintaining its utility focus and preventing speculative trading on DeFi platforms.

2.4 Distribution Plan

  1. Founders: 35%

    • Allocation: 350,000 LSF
    • Usage: To be utilized at the discretion of the founding team for strategic planning and furthering the project’s goals.

  2. Developers and Team: 25%

    • Allocation: 250,000 LSF
    • Distribution Method: Repeating payments to incentivize ongoing development and commitment to the project. The exact schedule can be determined based on project milestones and individual contributions.

  3. Community and Ecosystem: 30%

    • Allocation: 300,000 LSF
    • Distribution Channels:
      • Community Rewards and Incentives: 20% (60,000 LSF) - Distributed through community engagement initiatives, hackathons, and other events over a span of 2-3 years.
      • Partnerships and Collaborations: 10% (30,000 LSF) - Allocated for strategic partnerships and collaborations over a span of 2-3 years.

  4. Treasury: 10%

    • Allocation: 100,000 LSF
    • Usage: Reserved for future developments, unforeseen contingencies, and to facilitate community proposals and initiatives. This fund acts as a safeguard to ensure the project’s stability and sustainability.

Notes:

  • Governance Participation: Encourage active participation from the community in governance decisions, including potential reallocation of treasury funds based on community proposals and votes.
  • Transparency: Maintain transparency in the distribution process, with regular updates and reports to the community.
  • Adjustments: The distribution plan should be flexible to allow for adjustments based on community feedback and changing ecosystem dynamics.

Summary:

This distribution plan is designed to prioritize the motivation and responsibility of the founding team while also fostering a vibrant community and ecosystem. It ensures a significant stake for the founders, promoting a vested interest in the project’s long-term success, while also allocating resources for community development and strategic growth.

2.5 Governance Mechanisms

  • Decision-Making: Token holders will have a significant influence in the decision-making processes within the DAO, fostering a decentralized and community-driven governance structure.
  • Proposal Systems: Systems will be developed where token holders can propose and discuss changes to the protocol, encouraging proactive community participation in governance.
  • Admin Capabilities Control: The LSF token will be used in the DAO contract to control admin capabilities and manage treasury funds.
  • Protection Measures: The DAO has the ability to freeze and remint LSF tokens to safeguard the ecosystem from malicious token holders.
  • Legal Framework: A legal framework will be developed that clearly defines the token’s utility and restricts its use for non-governance purposes, ensuring compliance with regulatory requirements.

Conclusion

The introduction of the liSUI and LSF tokens is a pivotal step towards constructing a robust and dynamic DAO. The liSUI token facilitates liquidity and integration with the DeFi ecosystem, while the LSF token nurtures a decentralized and community-driven governance structure. Together, they form the backbone of a vibrant and user-centric ecosystem.