**This is a sandboxed launch. No liquidity pools are currently available for OVL**

tl;dr

• Overlay is launched on Ethereum Mainnet

• OVL token is live. Through a Snapshot vote, the DAO will decide the initial community distribution

• ETH/USDC is the only open market as of today, no markets will be added without the green light from PlanckCat DAO

• Approval of distribution needs to happen via DAO

• OVL has no liquid market and there are no plans to launch one during Litter Box 1

If you’re reading this, that means Overlay has successfully launched Overlay core contracts. That also means, naturally, its native token OVL is deployed and ready for use. In this article we’re going to cover details about Litter Box 1, OVL and potential future distributions.

Litter Box 1

Since OVL tokens have not yet been distributed, building and unwinding positions on data streams is not possible as of right now. Once PlanckCat DAO decides and distribution starts, users with OVL will be able to lock their OVL to the ETH/USDC market, as shared in the Litter Box 1 governance proposal.

OVL

Initial Supply at TGE: 8,000,000 (100%)

53.53% of the total supply (4,282,400) is reserved for the community (further details to follow).

OVL distribution proposal

In the next Overlay Governance Proposal (OGP-3), it will be proposed that PlanckCat DAO distributes a small portion of OVL. The distribution should provide a small amount of OVL to PlanckCat DAO, early contributors, and Overlay Hoodie purchasers. In total, there will be ~100 wallets receiving this distribution.

The guarded launch of the protocol, the sandboxed “Litter Box 1”, does not have liquidity or float for OVL, so in order to incentivize those who would now have OVL to build and unwind positions on the protocol — thus potentially gaining or losing OVL — Litter Box 1 would introduce a rewards program. This program would introduce tiers of NFTs, based on points earned. Points would be gained from participants successfully minting more OVL. The more OVL users mint through successful builds and unwinds, the more points they will earn. The more points they earn, the nicer NFT they can claim.

For a more detailed breakdown of the proposal, read on.

Reward Program Details

Overlay’s earliest and most dedicated contributors (PCD holders, early NFT holders, hoodie buyers) may receive a nominal amount of OVL in order to participate in Litter Box 1. PCD’s would be weighted most, early contributors next, then Hoodie purchasers. According to the reward program, participants can try to earn points in order to claim the best NFTs they can.

Throughout Litter Box 1, users try to collect as many points as possible. The point breakdown is as follows:

• Opening a single position: 1 point (limit of 5 points)

• Unwinding a single position: 1 point (limit of 5 points)

• Total PnL is X% after the end of Litter Box 1: X points

• Total PnL is -X% after the end of Litter Box 1: X/10 points

By collecting points, users will be able to claim Gold, Silver and Bronze NFTs.

Users need to;

• Collect 100 points to claim the Gold NFT

• Collect 33 points to claim the Silver NFT

• Collect 10 points to claim the Bronze NFT

These NFTs will become claimable once the reward program ends. Below are the NFT’s up for grabs.

Litter Box 1 Rewards Program Rules

In order to create an egalitarian environment for traders, there should be some rules in this rewards program. From limiting the number of points that can be gained from opening/closing a position, to DAO veto right, here’s our suggestion for rules:

Per this proposal, rules are as follows:

• Earning 1 point from building a single position is limited to 5 points.

• Earning 1 point from unwinding a single position is limited to 5 points.

• DAO has the right to exclude any wallets, traders, community members, and addresses they deem to be trying to hack the good nature of Litter Box 1.

Any conduct by competition participants that appears to be unlawful, malicious, or criminal in nature will immediately disqualify a participant from participating.

ALL PARTICIPATION IN LITTER BOX 1 IS DONE THROUGH THE OWN VOLITION OF THE PARTICIPANT. REWARDS ARE NOT GUARANTEED AND LITTER BOX 1 MAY BE CANCELED AT ANY POINT IN TIME. PARTICIPATION WITH LITTER BOX 1 MEANS YOU ARE USING YOUR OWN ETH FOR GAS FEES. PARTICIPANTS UNDERSTAND THERE IS NO GUARANTEE OF ANYTHING. THIS REWARDS PROGRAM DOES NOT PROMOTE OR GUARANTEE ANY GAINS OF ANY KIND, ESPECIALLY FINANCIAL, AND IS FOR TESTING PURPOSES ONLY. LITTER BOX 1 IS A TEST ENVIRONMENT IN PRODUCTION, AND THERE MAY BE SIGNIFICANT BUGS. THE TOKEN AND ALL CONTRACTS MAY NEED TO BE REDEPLOYED IF ANYTHING IS FOUND TO BE WRONG.