Wreath Token

Outline of the tokenomics of the Wreath Token (WREATH)

Details regarding specific token distribution percentages, vesting schedules, and initial circulating supply will be released closer to the official token generation event (TGE). This page focuses on the planned utility and role of WREATH.

I. Overview

WREATH is an ERC20 token designed to empower the community and drive the long-term sustainability and development of the Wreath Finance ecosystem. Its core functions revolve around:

• Governance: Enabling decentralized decision-making for protocol upgrades and parameter changes.

• Revenue Sharing: Distributing a portion of protocol-generated revenue to token holders who actively participate in the ecosystem.

• Staking & Incentives: Potentially offering staking mechanisms for yield and access to exclusive platform benefits.

II. WREATH Token Utility

1. Governance

• Voting Power: WREATH holders will be able to vote on key governance proposals related to the Wreath protocol. The weight of a user's vote will be proportional to the amount of WREATH they hold or stake.

• Proposal Submission: A minimum threshold of WREATH holdings may be required to submit new governance proposals for community consideration.

• Scope of Governance: Initially, governance may cover aspects such as:

  • Adjustments to protocol fee structures (e.g., deploymentFee in BondFactory.sol).

  • Allocation of treasury funds.

  • Integration of new features or support for new asset types.

  • Parameters for staking and incentive programs.

  • Updates to the protocol's core smart contracts (following security best practices and audits).

2. Revenue Sharing

• Source of Revenue: The primary source of protocol revenue is the deploymentFee collected by the BondFactory.sol contract upon the creation of each new bond. This fee is currently denominated in ETH (or the native chain currency).

• Distribution Mechanism: A designated portion of the collected deployment fees will be periodically distributed to WREATH token holders.

  • The exact mechanism might involve staking WREATH in a dedicated revenue-sharing pool or direct airdrops to qualifying holders.

  • The percentage of fees allocated for revenue sharing will be subject to governance.

• Objective: To align the interests of WREATH holders with the success and adoption of the Wreath platform. As more bonds are created, more revenue is generated, benefiting active token holders.

3. Staking & Potential Future Utilities

• Yield Generation: Staking WREATH could provide stakers with additional WREATH rewards, sourced from a dedicated rewards pool or a portion of protocol revenue.

• Platform Benefits: Staked WREATH might grant access to benefits such as:

  • Reduced deploymentFee for bond creators who also stake WREATH.

  • Early access to new bond offerings or platform features.

  • Tiered benefits based on the amount of WREATH staked.

• Liquidity Mining: WREATH could be used to incentivize liquidity provision for WREATH pairs on decentralized exchanges.

III. Protocol Fees & Revenue Streams

1. Current Revenue Sources

• Bond Deployment Fee:

  • Contract: BondFactory.sol

  • Mechanism: A flat fee (currently deploymentFee public variable, payable in ETH/native currency) is charged to project creators when they call the createBond() function.

  • Collection: This fee is paid directly to the BondFactory contract at the time of bond creation.

  • Management: The BondFactory owner (initially the Wreath core team, potentially transitioning to a DAO-controlled multisig) can call setDeploymentFee() to update the fee amount and withdrawFees() to transfer the accumulated fees from the contract.

2. Potential Future Revenue Sources

• Performance Fees: A small percentage fee on successfully matured bonds or profits generated from LP positions (this is more complex and would require significant contract changes).

• Tiered Services: Fees for premium features or enhanced analytics for bond creators or investors.

• Fees on Secondary Market Transactions: When a new native secondary marketplace for LTs is launched, a small transaction fee could be shared amongst bond creators and primary contributors.

IV. Role in the Ecosystem

The WREATH token is integral to the Wreath Finance protocol's vision of creating a community-owned and governed platform for decentralized bond issuance and liquidity provisioning.

• Decentralization: By distributing governance power, WREATH aims to progressively decentralize the control and strategic direction of the protocol.

• Incentive Alignment: Revenue sharing and staking mechanisms are designed to reward long-term holders and active participants, aligning their success with the platform's growth.

• Sustainability: Protocol revenue, partially managed via WREATH governance, contributes to the ongoing development, security, and expansion of the Wreath ecosystem.

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Disclaimer: The information provided in this document is for informational purposes only and is subject to change. It does not constitute financial advice, an offer to sell, or a solicitation of an offer to buy any tokens.