Please note this is an archived post from May 7, 2021 migrated from Medium.com
“Everyone else brings out the choice wine first and then the cheaper wine after the guests have had too much to drink; but you have saved the best until now.”
Today, we are excited to share the very first samplings of the $APW token publicly, that soon the community will be able to get their hands on.
APW Token — Mechanisms
The APW token is an ERC-20 token, with a primary focus on protocol governance through the APWine Finance DAO.
The token follows a Curve-like form of voting escrow (veAPW) which has a *Lock *capability. Locking your APW for up to 2 years will yield an increased voting weight and share of protocol rewards. The longer you lock your APW, the more voting power you have.
Token holders will also benefit from the 5% performance fee collected from all yield that is deposited and futurized on the platform from day one. This fee can be adjusted by the DAO through a proposal, with the consensus of token holders. On top of that, a part of fees collected via swaps — 0.05% of trading volume in total — performed on the APWine AMM are also set to be retributed to APW holders.
The APW token has not only utility, but a stake in the performance of the protocol.
Additional functionality for the token will be unveiled at a later date, when the new V1 features are announced.
Token Distribution
Maximum Supply: 50,000,000 APW
The Community part of the circulating supply presented above also includes Ecosystem funds and Airdrops. Practically speaking, it means this is only an upper limit given for informational purposes.
Due to the liquidity mining following an inverse exponential curve, as described below, the maximum supply of $APW will never be effectively reached. By the end of year 2, there will be a maximum of 32,624,947 $APW tokens in circulation, or around only 65.2% of the total supply — making the token more scarce and valuable.
Token Allocations
Initial bootstrapping (7%)
A substantial part of the supply is set to be distributed during the upcoming Liquidity Bootstrapping Event, whose details will be unveiled in the coming days. This gives everyone a chance to have a stake in the project and its success while ensuring fair distribution amongst community members.
The funds raised during this event will be used to seed liquidity pools on decentralized exchanges.
This event will be the first opportunity to get $APW — There will be no tokens in circulation prior to it.
Community (56%)
The Community allocation gathers Liquidity Incentives and Ecosystem funds and grants, including Airdrops.
Liquidity Incentives
Most of the Community allocation will be reserved for Liquidity Incentives, so as to bring liquidity providers and create the most liquid and usable market for Future Yield.
**48% **of the supply is planned to be minted following an inverse exponential curve, so that there are a fixed amount of $APW tokens to distribute every year, with a decreasing inflation rate.
These tokens will be distributed through a liquidity mining program on $APW pairs, along with incentives for liquidity providers on the APWine AMM. The team and the DAO reserve the right for these tokens to be dynamically allocated to specific incentives, depending on current needs and for the good development of the project.
Ecosystem
A portion of the Community allocation is dedicated to Ecosystem growth, in the form of strategic partnerships and grants for active and meaningful contributions moving the project and the DeFi space forward.
Airdrops
Airdrops are a way to both reward long-time supporters of the project, but also attract resourceful members from external communities.
In a matter of introducing APWine to new users, while giving our existing community a chance to participate in the governance from day one, we’ve decided to allocate a portion of the Community Fund to the Genesis Airdrop.
A selection of external users will have a chance to get a stake in APWine governance; including users from selected communities and valuable actors of the DeFi ecosystem.
Early APWine users will receive part of the airdrop, for their valuable testing and feedback while the next protocol iterations were being fine-tuned. One must have interacted with one of the Alpha or Beta versions, or executed any on-chain order on the exchange.
The snapshot has been taken at block 12388510, at the time of publishing this article.
**Team (28.06%), **Investors & Advisors (8.94%)
The team, and all investors who have contributed to the project in its early days, have a vesting over multiple years as a commitment to the platform and its vision. The majority of the token supply is earmarked towards community growth, including liquidity incentives and ecosystem development. APWine is set to impose itself as one of the core building blocks of DeFi for Future Yield Tokenisation, and this feat takes planned, collective efforts to achieve.
Hence, the team is under a 4 years linear vesting schedule, and investors are following a 2 years linear vesting.
A look into the Future
A token is nothing without a strong platform, development team and community to support it. As we prepare for full production, we would like to thank you for your continued support, as always: providing excellent feedback on the platform, and daydreaming about how you may use your yield when you get it ahead of time—a dream that will soon become true.
In the very near future, as we are currently completing audits, we will be announcing the details of the liquidity bootstrapping phase and the Genesis Airdrop, so that you can have all the necessary information to be at the head of the pack when distribution begins.
About APWine
APWine is the pioneering protocol for tokenized yield in Web3. Users can leverage the protocol to fix interest rates, speculate on APR evolution or receive future yield in advance (even today).
Build the APWine City with us and connect with fellow Winemakers via: