Introducing the BaconCoin token, BACON

I2han.eth
0xD884
BaconCoin
0xC938
February 24th, 2022

The BaconCoin token, BACON, is now live! After lots of input from the community over the last few months and work by the team, we’ve reached a major step along the way towards our mission. We’re all working together to make it easier for people to buy homes and get access to the same mortgages banks and governments use to preserve and grow their wealth.

This is also huge step to even more decentralization for the Bacon Protocol. We’re excited to finally have the early adopters and the growing community start to participate in governance of the protocol using the BACON token.

Now that the launch is here, we want to share some of the important details about the new token, the timeline for the rollout, and most importantly, how you can help.

Key announcements:

  • The BACON token has been deployed to Ethereum mainnet at 0xa54d2EBfD977ad836203c85F18db2F0a0cF88854.
  • The protocol is now governed by the community and BACON holders can actively participate in governance. The governance and discussion sites will be available next week.
  • Due to popular demand, the BaconCoin website has been updated with a new design. Check it out!
  • BACON tokens will start to be distributed on-chain around noon PST on February 2nd starting with block 14,127,375.
  • To continue receiving BACON after February 2nd, bHOME holders must “stake” their bHOME in the BACON contract. “Staking” means depositing bHOME in the BACON contract to show your support for the protocol. You can stake anytime between now and the 2nd to prepare.
  • The audit of the governance and BACON contracts by BlockHunters is back and super clean. We’ll be sharing it publicly with the launch. Soon after, we’ll also open-source the contract code and legal agreements.
  • BACON already earned by over 180 existing bHOME holders will be distributed just after the on-chain distribution begins.
  • BACON is not available for sale or transfer from any exchanges. Don’t be fooled by other Bacons.

Community Growth

As we’ve shared from the beginning, BaconCoin is working to hard to put the power of mortgages into the hands of anyone who can buy crypto and use that power to vastly reduce the cost and increase the ease with which someone can purchase or refinance a house. We’re already seeing a fast start with over $5 million lent to borrowers. That value is all backed by Egg NFTs that represent over $30 million in real world value of US homes.

This is all due to the incredible BaconCoin comunity. From the very first day the BaconCoin protocol was live on mainnet, the outpouring of interest and participation from the community has been outstanding. The amount of value locked has grown quickly and is distributed across almost 200 holders. Some people have started by providing as little as 50 USDC just to be involved in the mission. The thoughtful and helpful conversation on Telegram and Discord have been fun to be part of. BaconCoin has a quickly growing, decentralized community that will drive the protocol forward.

And we’re all just getting started. The governance and utility that BACON will make possible kick off a new chapter of work together to scale and build the protocol together.

Introducing the BACON Token

As laid out in the Bacon Protocol Whitepaper, the BACON token is core to the success and function of the protocol. At launch, it already has great utility including:

  • Community Governance: BACON holders help to create the future of the protocol by proposing upgrades and voting on their implementation.
  • Treasury Management: The BaconCoin DAO is allocated a large grant of BACON tokens and earns rewards when loans are minted. BACON holders will decide on how to use these funds to grow and improve the protocol.
  • Community Grants: The community can decide to provide grants to people that actively engage and contribute to the ecosystem.
  • Participant Incentives: Protocol participants can receive incentives of BACON by providing liquidity to bHOME or other pans to start. Other incentives will be rolled out over time to help reward actions that grow the protocol.
  • Lending Oversight: BaconCoin is run by smart contracts that choose which kinds of loans to provide, the interest rates that borrowers receive, and the balance between lending and protocol liquidity. BACON holders can propose changes to the parameters and vote to implement the changes that are in the best interest of the protocol as a whole. BaconCoin governance also chooses which new Pans are added to the protocol.
  • Servicer Approval and Oversight: BACON holders are also responsible for choosing which Servicers are allowed into the protocol and holding them responsible for fulfilling their role faithfully. Unfaithful Servicers can be removed by a vote of the BACON holders. New Servicers can be added to the protocol by a vote of the BACON holders.

As a governance token, BaconCoin can be used in the BaconCoinDAO to propose and vote on transactions immediately upon release. Additionally, BaconCoin holders who do not wish to actively follow proposals can and should delegate their votes to another wallet. In the next week, we will be releasing a governance interface for the DAO to make governance and discussion on proposals simple.

As we continue building out the protocol roadmap, BACON will gain new utility and power to protect and grow the protocol. Many of these functions will go live in the coming months, pending further development and input and approval from the community.

Allocations

We want BACON allocations to reflect the value of the contributions to the protocol and incentivize everyone to act to protect and grow the protocol together. As described in the whitepaper, BACON will accrue to the community, the BaconCoin DAO, and to early team members and investors.

There are a few small changes to the allocation that we propose based on all that we’ve learned since the launch four months ago. You can see these in the updated version of the whitepaper. They are:

  • The total BACON distributed in the first 4 years will from 100 million tokens to 1 billion tokens. This does not change the relative allocations. We feel that having 1 billion tokens will be beneficial in the long run.
  • A new community allocation has been created for incentive programs outside the initial bHOME Pan. For example, rewarding people that participate in education programs, DEX liquidity, cross-chain bridging, or interoperability with other protocols. This allocation will be controlled by the DAO and token governance initially and may become baked into smart contracts over time.

BACON tokens will be distributed as described in the whitepaper. Here are the initial allocation amounts of the total BACON supply after 4 years.

Community (51%)

We value the participation of the BaconCoin community and know they are the most important part of the protocol. It’s important that a broad, diverse community controls the majority of governance and utility in the protocol.

30.5% — bHOME Liquidity Providers: These tokens are allocated to bHOME liquidity providers (LPs) and LPs in newly created Pans. Existing bHOME LPs will receive their previously earned allocation on the 2nd of February with the BACON launch.

12.5% — Early Liquidity Bonus: Providers of the first $100M in liquidity will receive bonus BACON during the first year of the protocol. These providers are helping to bootstrap the protocol and are key to its early success.

8.0% — Other Incentives: Other opportunities will arise for the protocol to incentivize various actions in the broader crypto ecosystem. The DAO will have these tokens to use to take advantage of these as they arise.

BaconCoin DAO (10%)

10% — DAO Treasury: The BaconCoin DAO has core responsibility for the stability and growth of the protocol. It will receive a treasury of BACON distributed continuously over 4 years that it will use to further the goals of the protocol. The community will govern the treasury.

Team and Investors (39%)

Many people supported, invested in, and helped build BaconCoin to where it is today and will be needed to create its future.

39% — Team and Investors: LoanSnap’s investors and team provided the initial support and work to invent and create BaconCoin. This allocation will be distributed over 4 years to keep the team and investors focused on the long term. LoanSnap will distribute the tokens amongst its investors, current team, and future team.

Total Token Supply and Unlock Schedule

The initial token supply is targeted to 1,000,000,000 tokens at the end of four years. After 4 years, the community allocations will continue to accrue at around 2% of supply.

Here is the token unlock schedule shown over the next 5 years.

Using BaconCoin

Along with the release of the BACON token, we have updated the BaconCoin application to make it easy to interact with the protocol’s contracts. Here are a few new things you can do at https://app.baconcoin.com.

Stake bHOME

Following the release of on-chain BaconCoin on the 2nd, bHOME holders must stake bHOME to earn BaconCoin. To do this, there is a new Staking page. To stake your existing bHOME, visit the Staking page, enter the amount of bHOME you would like to stake, and click on Stake bHOME to submit the transaction.

Since we expect most users will want to stake their bHOME immediately, we have updated the bHOME page to stake newly deposited bHOME by default. in one transaction. The “Deposit USDC” button is now “Deposit USDC (and Stake)”.

Claim BACON

Once you have staked bHOME, you are accruing BACON on chain that you can use to help govern the protocol you’re part of. BACON never expires and you can claim it at any time on the BACON page. Visit the page and click “Claim BACON” to submit a claim transaction. Your accrued BACON will then be available in your wallet for you to use to make new proposals and vote on protocol changes.

How to Contribute

Now that the BACON token is out and ready to use there are even more ways to get involved in helping to make it easier for people to buy homes and get access to the same mortgages banks and governments use to preserve and grow their wealth.

  • Join the on going discussion on Discord and Telegram.
  • Deposit USDC to get bHOME at https://www.baconcoin.com.
  • Do your friends a favor and click below to share on Twitter, Facebook, and LinkedIn to let them know about BaconCoin.
  • Earn BACON and actively participate in governance by discussing proposals and voting.
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