Page discusses tokenomics, seed round, notable partners, vesting, BLBP
Initially, a total supply of 1,000,000,000 $MC tokens have been minted with no possibility for future inflation. These tokens will be distributed in the Token Generation Event (TGE) to the following stakeholders within the DAO:
- Liquidity Rewards - incentives for providing liquidity on decentralized exchanges - 10% (100,000,000 MC tokens)
- Public Distribution - tokens set aside for the public round - 7.5% (75,000,000 MC tokens)
For the seed round of funding for the DAO, we chose to focus on investors who could contribute to the long-term vision for Merit Circle, as well as having a thorough understanding of the industry and governance models. Being a DAO, we wanted to create a diversified organization representing the entire globe, and thus considered backers from Asia, Europe, Australia and the United States.
We are pleased to have raised $4.5 million from a series of reputable venture capitalists and strategic partners. The DAO was initially formed from industry-leading names like DeFiance Capital, Mechanism Capital, Spartan Group, DCG, Maven11, OP Crypto, Dialectic, CitizenX, Yield Guild Games and Bitscale Capital.
This was accompanied by a number of angel investors such as Jihoz (Axie), Alex and Isaac (Nansen), Gmoney, Kieran and Danny (Illuvium), Kristaps (Hashrush), Tin (Sipher), Ryan (Teller), Calvin (Impossible Finance), Bobby (Coingecko), Piers (Bitkraft), Richard (Quantstamp), Sergei Chan, Danish Chaudhry and many others!
Throughout our selection process of investors, we deliberately spread our source of funding across various entities to ensure that decentralization is maximized. As a community-first project, we understood that further decentralization of the Merit Circle DAO would only be possible through the widespread distribution of the governance token ($MC). As per the token distribution chart, 7.5% (75,000,000 MC) was allocated to the public sale.
As crypto enthusiasts, we noticed that the common method for public funding was heavily flawed. Short whitelists with more investors than available spots lead to stressful competition and a lot of money spent on gas fees.
To overcome these pitfalls in fundraising, we decided to host our public round through a Balancer Liquidity Boostrapping Pool (BLBP). This was an innovative method, allowing market participants to determine the fair price of the MC token.
Similar to a regular pool like Uniswap or Sushiswap, assets are matched in value in an equal 50:50 ratio. In the balancer pool, these weights are flexible and change over the course of 72 hours that the pool is live. Starting at 96:4 (MC/USDC), the weights gradually decrease to 50:50 over the time the pool runs.
During this 72 hour period, anyone was able to swap their Ethereum, USDC, USDT and any other ERC-20 currency for MC tokens. Swaps created an upward pressure on the price, while an absence of trades gradually lowered the price.
To make the public round as user friendly as possible, we used the Copperlaunch platform created by Alchemist. This enabled an open and transparent way for investors to interact with the BLBP.
- Total funds raised: $105,576,956
- Total volume: $138,623,586.33
- Total fees paid: $2,772,472
- Tokens sold: 40,976,598 million MC (55% of the total 75 million MC tokens allocated)
- Participants: 3,900
- Total transactions: 6,313