SIP-1
SIP-001: Decide on TGE details for the upcoming launch Authors: Lafachief Date: 11/12/2024 Status: voted (Option 5 won)
For a better readability use: SYMMIO Notion
Preamble
This governance proposal aims to improve the tokenomics of SYMMIO in light of a shift in our launch strategy. Initially, the plan was to ensure Symmio achieved a certain daily volume milestone alongside launching the token on a centralized exchange (CEX). However, due to the platform’s ongoing improvements taking longer than anticipated, coupled with the community’s eagerness and favorable market conditions, we propose accelerating the launch timeline.
Launching immediately presents challenges, primarily the need to provide liquidity on a decentralized exchange (DEX) . A key question arises: Where should this liquidity come from?
This proposal aims to solve these challenges by:
Deciding to use pre-earned fees as liquidity for the DEX launch.
Additionally proposing changes to the vesting schedule and incentivize liquidity provision.
Based on community feedback, we present five options for consideration.
Abstract
This proposal presents five options for the SYMM token vesting and Token Generation Event (TGE) structure, each designed to address specific community concerns and project objectives. The options range from maintaining the existing 12-month vesting schedule to introducing an immediate token launch with full unlock and no vesting, as well as the option to have improved vesting mechanics with early unlocks. We also propose 2 options for an immediate launch with staking & vesting contract developments deferred for after the token launch. We provide an overview of the motivation, specifications, rationale, and potential impacts of each option to facilitate an informed decision by the community.
Simple Summary & Specifications
We propose to focus on the core structure of the SYMM token vesting and early unlock options, deferring details like incentives, fee distribution, and liquidity pool (LP) mechanics to be finalized later. The key options for the community to vote on are:
Detailed Specifications can be found in the subpages on the left.
Maintain the Current Plan: Keep everything as is with a 12-month vesting period. Develop single staking, LP staking and vesting contracts audit them, then launch.
Extend the Vesting Period: Increase the vesting period beyond 12 to XX months, keeping all other aspects unchanged. Develop single staking, LP staking and vesting contracts audit them, then launch.
Modified Vesting with Early Unlock Option: Keep vesting at 12 months but allow for early token unlock with a penalty (percentage to be determined) and incentivize LP participation to unlock early. Develop a modified vesting schedule with an early unlock option, as well as POL distribution & staking audit it, and make it accessible to the community, then introduce a yearly 1.875% inflation rate (16,500,000 $SYMM, taken from liquidity incentives) to incentivize LPs (could be an UNI-v2 or UNI-v3 pool) via developed staking contracts to provide liquidity, until voted else, then launch.
Work on single-staking after launch.
4: Immediate TGE w/ full unlock
Full token unlock at TGE (No Vesting) Immediately: Proceed with the TGE within a maximum of two weeks after the vote concludes by launching a simple ERC-20 OpenZeppelin token. Unlock all tokens at the Token Generation Event (TGE) with no vesting, provide early migrators with an additional bonus of X tokens/fees (exact details of the bonus should be decided in a follow up vote), and use all pre-earned fees as Protocol-Owned Liquidity (POL).
Later:
Develop & audit staking contracts for LPs & Introduce a yearly inflation rate of 1.875% (16,500,000 $SYMM, taken from liquidity incentives) to incentivize LPs (could be an UNI-v2 or UNI-v3 pool) to provide liquidity, subject to future governance votes, develop single-staking after.
5: Immediate TGE w/ modified vesting
Benefits of Option 3 but with Immediate TGE:
Immediately: Proceed with the TGE within a maximum of two weeks after the vote concludes by launching a simple pre-audited ERC-20 Open Zeppelin token. Establish a liquidity pool (LP) with an 80/20 ratio, immediately distribute 5% of $SYMM to late migrators and 10% to early migrators, and use accumulated fees as Protocol-Owned Liquidity (POL).
Later: Develop all things mentioned in 3: Vesting w/ early unlocks a modified vesting schedule with an early unlock option, as well as POL distribution & staking audit it, and make it accessible to the community. Then introduce a yearly 1.875% inflation rate (16,500,000 $SYMM, taken from liquidity incentives) to incentivize LPs (could be an UNI-v2 or UNI-v3 pool) via developed staking contracts to provide liquidity, until voted else, then work on single-staking.
Rationale
Each option presents a different approach to addressing the challenges of immediate token launch, liquidity provision, and balancing the interests of various stakeholders.
Options 1 and 2 maintain or extend the original vesting plan, focusing on a gradual token release but requiring more development and audit time before the TGE.
Option 3 introduces flexibility by allowing early unlocks with or without penalties, aiming to balance immediate liquidity needs with protections against predictable and long-lasting token unlocks. It provides the greatest incentives for all users to immediately provide liquidity by offering a favorable early vesting unlock but also requires more development time before the TGE.
Option 4 accelerates the TGE process by immediately distributing all tokens at launch while deferring the development of LP/single staking until after the launch. It uses pre-earned fees as Protocol-Owned Liquidity (POL) to support liquidity from day one.
Option 5 also accelerates the token launch similarly to Option 4 but only distributes a portion of the supply at launch. It basically introduces all the benefits of Option 3 without the need to wait for TGE, and also uses pre-earned fees as POL to support liquidity from day one.
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