Over a year ago, we launched Carmine Options AMM, followed shortly by the release of Carmine DAO’s governance contracts, which were among the first Cairo 1 smart contracts on (Starknet) mainnet. From the beginning, we have been committed to a long-term vision. We knew that achieving our goals would take time, and invited you to join us on this multi-year journey. While we have made significant progress, we are still only at the beginning of what we aim to accomplish. The vision we have set for us, continues to guide all our decisions. In addition to that, we are firm believers of the Starknet and its tech stack, especially with the upcoming OP_CAT vision that sets Starknet to become a L2 on top of Bitcoin.

Now for the exciting part: Airdrop!

We have opted for a pre-distribution model instead of a token presale. A year ago, an early token distribution was made to the initial users of the Carmine Options AMM. Thus, today we have 2.5k early users golding Carmine tokens (veCRM). This dedicated community established the DAO and is currently voting to approve the ongoing airdrop proposal.

This airdrop aims to significantly increase the number of token holders. We've deliberated on various aspects like vesting and staking and decided, based on community feedback across Starknet, to forgo a vesting scheme. Instead, we will release the tokens with voluntary staking commitments, starting with a low Fully Diluted Valuation (FDV) and an upward trajectory. The airdrop is expected to massively increase the number of token holders.

Airdrop Details

We propose to airdrop 10 million Carmine tokens to the community immediately, without any vesting. These tokens will be distributed among:

• Point holders (traders, LPs, referrals)

• Ambassadors

• Moderators

• Community members instrumental to the success of Carmine Options AMM

• OG and testnet Discord roles

Zealy, Galxe, and Gitcoin contributors will have the opportunity to submit their addresses and be rewarded later.

• Zealy users

• Galxe users

• Gitcoin contributors

Additionally, around 26 million Carmine tokens will be allocated for the community, with additional 10 million for the treasury and 10 million for the security pool. Alongside the already distributed 4 million tokens, this incentivises community participation.

Community First

You may notice that the community will receive the tokens slightly before the core team and investors. This is intentional to honor the community’s pivotal role in our journey. Although the difference is only a few days, we want to emphasize that without you, there would be no Carmine. Furthermore, investors and the core team will receive a big portion of the tokens initially, but the updated governance smart contracts will ensure balanced voting power between the core team and the community.

Governance and Proposals

The first proposal is to upgrade the governance smart contracts based on the open sourced Konoha project (earlier “Carmine governance”). This includes issuing the CRM token, adding staking and unstaking mechanisms, renaming tokens, and integrating new options. We are also upgrading the front end and backend systems.

Following this, the airdrop proposal will be implemented. The airdrop proposal acts as a basis on which to airdrop the tokens. These proposals are separated for technical reasons.

Looking ahead

In the short term, we anticipate some airdrop recipients may sell their tokens. However, as emphasized, our focus is long-term growth. We will utilize the capital from the Catalyst program to enhance the value of Carmine Options AMM rather than serving as exit liquidity for airdrop farmers. The core team will not list the token on any DEX or CEX, but the community is welcome to do so if they wish.

We are also awaiting funds from the Catalyst program. Once received, we will propose how to use the budget and welcome any community input.

Future developments include completing smart contracts for hedging impermanent loss, upgrading the AMM for more options, and building option vaults. Additionally, Carmine Finance is developing DeRisk, a tool for assessing risks of underwater loans on lending protocols, which will support the creation of insurance products for underwater loans. We are also releasing a watchdog tool to help users monitor loan liquidations.

Conclusion

The Carmine TGE and airdrop marks a pivotal step in our journey. With a strong belief in Starknet's tech and the support of our dedicated community, we’re excited to democratize access to Carmine tokens. This initiative fosters broader participation and sets the stage for future growth and innovation.

Thank you for being part of Carmine Finance. Together, we are shaping the future of decentralized finance. Stay tuned for more updates and join us in this exciting journey.