[AGIP-9] AGLD Tokenomics Proposal V4

Tokens
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AGLD Tokenomics Proposal V4

Intro

This proposal is an extension of the previous token economics proposal V3 with modifications focusing on the future work perspective. Given that the Tally platform will launch soon, this proposal will be regarded as a temperature check. If passed on Snapshot, this proposal will be proposed and voted on Tally as the first fully onchain governance proposal for the AGLD DAO.

This extension seeks to reflect the latest development of the Adventure Layer ecosystem and the changes in crypto industry. The previously proposed V3 has met with new market trends driven by the developments in the FOCG vertical, the uprise of meme coins and impact of AI. This V4 proposal takes a more detailed and pragmatic approach than V3, as well as addressing the future work previously mentioned in V3.

The V1 proposal was proposed in 2021, shortly after the TGE of $AGLD token. The V3 proposal was proposed in 2023 to reflect the changing environment throughout the bear market. We strive to align AGLD with the best practices & latest trends of the crypto industry to protect the interest of the community, and this V4 proposal update is no different.

Reference: [AGIP - 1] Adventure Gold Tokenomics Proposal v1 (2021)
Reference: Loot-Talk Forum Discussion (2021)
Reference: [AGIP-4] Adventure Gold Token Economics Proposal V3 (2023)
Reference: Loot-Talk Forum Discussion (2023)

TLDR

  • AGLD token will now focus on bootstrapping and supporting the Adventure Layer ecosystem. This includes FOCGs, AI agents, meme coins, DeFi and various other applications, tools & infrastructures.
  • AGLD issuance/inflation will follow the plan as passed in V1 & V3. That will be 8 million (10% of max supply) $AGLD in the 1st year, halving on a yearly basis (4 million in the 2nd year, 2 million in the 3rd year, and so on).
  • Total Issuance for the past 5 years will be minted lump sum (2021-2025). Future issuance will happen on a yearly basis.
  • AGLD Issuance are to be distributed via the decision made by onchain voting with $AGLD.

Changes in V4:

Tokenomics

  • Total/maximum supply change: 80,000,000 to 96,000,000 (soft cap)
    • 8M (10%) inflation for the first year, starting from 2021.
    • Halvings happen yearly. 4M in 2nd year, 2M in 3rd year, and so on.
    • Approaching but never exceeding a 20% inflation soft cap.
  • Circulating supply change: 77,310,001 to 92,810,001, an increase of 15.5 million tokens.
  • The inflation is consistent with our V1 proposal, which should have been implemented since 2021, however, we halted the implementation due to centralization & security concerns, since the token contract was controlled by a multi-sig from the token issuer.
  • Now that we have transferred the ownership of $AGLD smart contract to the Tally platform, there is no central party controlling the token, allowing us to embrace a fully decentralized and censorship-resistant future.
  • Therefore, the inflation for the last 5 years will be minted in lump sums as illustrated in this proposal. Future inflation will be carried out at the beginning of each year.
    • 8M (2021) + 4M (2022) + 2M (2023) + 1M (2024) + 0.5M (2025) = 15.5M
    • 10% + 5% + 2.5% + 1.25% + 0.625% = 19.375%
    • Inflation in 2026 will be 0.25 million tokens. The exact mint date is to be decided.
  • Allocation for the newly minted tokens is as follows
    • Retroactive funding: 5%. This is to support the infrastructure development already taking place.
      • Loot Chain L3: 1%
      • Adventure Layer: 3%
      • Miscellaneous: 1%. This includes the new website, bridging solution for Loot Chain & Adventure Layer, other infras & tools, further operations tasks, marketing and community budget.
    • Adventure Gold DAO Treasury: 5%. This is to support the need for future development in the Adventure Layer ecosystem.
    • Ecosystem Grants: 5%. This is to support the ecosystem projects building on the Adventure Layer. Details will be laid out in a future proposal.
    • Adventure Layer User Incentive: 4.375%. This is to incentivise the adoption of products on the Adventure Layer, allocated to community users.

Decision making

  • Retroactive funding:
    • As a fair launch project, we have built all of our products & infrastructures from voluntary contributors from the community. We sourced all the funding needed via donations from community members.
    • Now with so much work done, we have reached the point where volunteers & donations are no longer scalable. To further adapt the products and to build a competitive ecosystem, we need more resources to incentivise full-time contributors, support operations and marketing budget.
    • The 5% allocation from inflation is smaller than most project’s team allocation, so the community’s interest is well-protected.
  • Treasury: $AGLD in the AGLD DAO treasury will only be directed to the other 3 categories (retroactive funding, ecosystem grants, or user incentives), reserved to support the development of the Adventure Layer ecosystem.
  • Ecosystem grants:
    • Small grants (<5000 $AGLD): requires an application, decided by a grant committee with 5-9 members. For early-stage projects only.
    • Large grants (>5000 $AGLD): requires a formal proposal on Tally, decided by $AGLD token holders. For more mature projects, already demonstrating growing traction.
    • A subsequent proposal will outline more details on the process of the grant including the application channels, decision-making criteria and workflow. It will also include the responsibility and composition for the grant committee.
  • Adventure Layer User Incentive: requires a full proposal on Tally, decided by $AGLD token holders. For more mature projects, already demonstrating growing traction.

AGLD token holders will vote to decide where to direct the AGLD from inflation to best incentivize community development.

Implications

Born as a fair launch token 3 years ago, we pride ourselves as the leader in fair launch token communities, having made the breakthrough in one of the first meme infra by launching the Loot Chain in mid-2023.

The cryptocurrency industry has changed a lot in the past 3 years. The growth of 100% fair launch meme coins has raised the standard of token distribution, where the supply is fully circulating and immutable from day one. The rise of meme coins has also raised the bar on security, where complicated smart contract functions are often excluded to prevent hacks and to introduce more trust.

It is with great regret that we remove the beloved UBI design in V3, given the concern of vulnerability that comes with the additional attack vectors, such as manipulation on the floor price of NFTs.

We are still trying to achieve the same thing: the adoption of Fully Onchain Games (FOCG) and ensuring the success of the $AGLD community. Therefore we take great measures to address the previously mentioned “future works”. Rest assured that the $AGLD token holders are always in control.

Retro-active Funding

Funding is needed primarily to ensure the continued development of our core infrastructure. To achieve 30ms finality AND ECS level parallel processing is no small feat, which is a first in the industry. We committed to the infra play in the V3 proposal, we will stick to it.

Treasury

Previously we allocated 50% of inflation to the treasury, which will be directed to the ecosystem developments. In this proposal, we directed 5% out of the total 18.75% inflation to the treasury. This new treasury allocation serves as a reservation for future developments.

Ecosystem Grants

In our journey to support teams building FOCGs for the past three years, we realized that their development cost is much higher than those of Web2.5 games. FOCG is a new genre where limitations have never been seen before. The sweaty devs in their garage need a stronger kick than ever.

Adventure Layer User Incentives

We strongly believe the best growth hack is to make your users rich. That’s why we decided to add this new category of tokenomics: “user incentives”. It’s not called “community allocation”, “mining” or “farming”. For the users who generated GDP on Adventure Layer, you will be rewarded.

Future work:

As a fair launch coin, we have come very close to the “grand slam”. We have our own chain custom-made for our ecosystem. The $AGLD token is listed on almost all major exchanges, covering millions of users worldwide. There is only one milestone remaining when it comes to adoption: an expanded currency stack that positions $AGLD as “money” in the onchain world.

Expanded currency stack

We are working with multiple games that use $AGLD as their in-game currency. As stated in our FOCG thesis and our manifesto, we focus on driving one thing and one thing only: position AGLD as the base currency for gamified financial markets. Our first example is implementing $AGLD in Supersize.gg, the winner of the latest Solana Colosseum hackathon. This is only the beginning of something groundbreaking. We are exploring more games that can bring FOCGs to users in the same way that Bitcoin, Ethereum and Solana find adoption for crypto.

Closing

Loot is our origin. We started with a big dream. After three years of grinding, we have laid the foundation of something even more tremendous. This proposal is a small step of $AGLD, a giant leap for crypto.

Below is our modified version of , September 12, 1962, by John F. Kennedy, the President of the United States.

We set sail on this new sea because there is new knowledge to be gained, and new rights to be won, and they must be won and used for the progress of all people…We choose to adopt FOCGs in this cycle and do the other things, not because they are easy, but because they are hard; because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one we intend to win, and the others, too.

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