The WEFT Token
At Weft, our vision encompasses the construction of a user-friendly ecosystem of decentralized applications (dApps) on Radix DLT, while keeping a forward-thinking mindset. As mentioned in the overview section The WEFT token serves as a last-resort safeguard against the risks associated with market volatility.
The token utility
Token holders can stake their WEFT tokens, thereby mitigating the potential for insolvency during tumultuous market phases or unexpected events with a substantial impact on Weft lending pools. Recognizing the significant commitment borne by WEFT stakers, we have devised a framework that not only safeguards the project’s integrity but also rewards their participation through a share of the collected fees during day-to-day operations.
However, the role of the WEFT token is not confined to a singular function. It also plays a secondary role in facilitating proposal fees. In our ecosystem, anyone proposing a governance change will need to pay a fee in WEFT tokens. This mechanism promotes engagement, and interaction, and enhances the token’s utility. The entirety of this fee will go to the WEFT stakers.
Is WEFT a Governance Token?
Four Weft governance structure, we are exploring a distinct path, relying on a reputation-based system that thrives on active involvement within both our dApps and governance activities. This innovative approach ensures that our community actively contributes to shaping the evolution of the Weft ecosystem. Further details about the deployment of this governance model will be shared once it is established, but we can already say that the WEFT token will play a key role in it.
Token Circulation Strategy
The total supply of WEFT tokens is fixed a 100,000,000 Tokens. We have outlined a token circulation strategy with a steadfast commitment to community-driven success. Specifically, 65% of the total supply of WEFT tokens will be airdropped to the Weft community through three distinct approaches:
Validator Node Stakers: Beyond core development activities, we acknowledge the necessity of resources to support vital functions such as code audits, server maintenance, and associated costs. Accordingly, 20% of the token supply will be airdropped to validator node stakers, fostering an ecosystem of support and resilience.
Liquidity Providers: The pivotal role liquidity providers play in the vibrancy of our ecosystem is duly recognized. To reward their contributions, 20% of the token supply will be allocated to liquidity providers as staking rewards, fostering an engaged and dynamic participation model.
Early Adopters’ Recognition: Our trajectory toward transitioning into a Decentralized Autonomous Organization (DAO) is integral to our roadmap. As we embark on this path, a substantial 25% of the total token supply will be airdropped to early adopters who have demonstrated their faith in the potential of our ecosystem.
The remaining 35% will be allocated to development releases and the promotion of Weft dApps.
Team and Development: A noteworthy 15% of the token supply is dedicated to incentivizing and acknowledging contributors who play a pivotal role in the development of Weft dApps. This allocation resonates with our ethos of collaborative growth, as it drives development through incentivization.
Listing and Partnership: A discerning 10% will be allocated to building strategic partnerships with projects in the Radix ecosystem. Part of this allocation will also support the initial Decentralized Exchange listing.
Marketing and Promotion: An additional 10% of the token allocation will be devoted to promoting Weft dApps and executing actions to attract more community members and early adopters.
The concept of vesting assumes paramount significance in fostering stability and measured growth within our ecosystem. Vesting primarily applies to the team allocation (15%), where access to allocated tokens unfolds linearly over 12 months after a 6 months cliff period.
Allocation to the initial listing and promotion (20%) will not be vested as we wish to have WEFT as liquid as possible to play its protection role.
Tokens distributed to the community will be accessible upon distribution, reaffirming our commitment to fairness and transparency. This comprehensive distribution process spans the journey from Babylon release to Weft’s eventual transition into a Decentralized Autonomous Organization, within a strategic timeframe of approximately 12 months.