Solid Tokenomics or Profit Sharing Pie

Ideas for Pie
#1

Hi everyone, I’m quite new to DeFi, but tokenomics has been very interesting to me. I noticed that some governance tokens also provide profit sharing and/or have better tokenomic designs that would increase the value of their tokens. Is it worth investigating if there are enough legitimate tokens to make a pie?

Here’s what I have found so far:

VALUE from Value DeFi
-Governance
-Buybacks
-14% profit from their vSafes product
-35% of swap fees from their vSwap product
https://docs.valuedefi.io/products/vGovernance

FARM from Harvest Finance
-Governance
-Entitles holders to a performance fee (currently 30%)
-Capped supply
-Anonymous though :expressionless:
https://farm.chainwiki.dev/en/supply

BFIE from bEarn
-Governance
-25% of the total rewards (plus 15% Vaults profit)
https://bearn-defi.medium.com/bearn-fi-introduction-9e65f6395dfc

MPH from 88MPH
-Governance
-Revenue sharing, but may be too new?
https://88mph.app/docs/mph/

RAMP from RAMP DeFi
-Governance (limited)
-Eligible for rewards from the weekly rPool distributions
-Secondary Market Buybacks and Burns
https://rampdefi.com/Documents/RAMP_DEFI_Litepaper_2021.pdf

What are your thoughts?

3 Likes
#2

I like tokenomics as well. I think there are a number of governance tokens that allow for a vote on fees or no fees. At the moment the liquditiy minning necessity keeps fees down or non-existent. I think Balancer as well.

I think that Tokenomics needs to be a criteria check or level we give every asset we include.

1 Like
#3

CVP, INDEX, and NDX too. I would invest in a DeFi governance pie.

1 Like
#4

What is CVP,INDEX and NDX?

#5

on second thought, I was thinking about a PIE with just index fund governance tokens not necessarily defi platforms. like the ones I listed plus dough and a few others maybe.

1 Like
#6

SDT too (StakeDAO)

More in line with the DeFi platform governance play

#7

Once the yearn $yveCRV vault comes out of beta I think it should be considered, it has a perpetual payout in stablecoin fees generated on curve’s AMM

1 Like
#8

I jumped in on Stake DAOs model this morning to try it out.

I was thinking about this as well, I also have some DEGEN. I just wonder if Governance is too vague, like if we went governance we would want some CEX,DEX, Derivatives, Lending, Social governance…i.e Julien. I think the slight variation to the basket gives you less volatility.

#9

So it is a PIE for governance tokens ?

#10

Thanks for the suggestions so far. I will look into those tokens. I think it also looks like we’ll need a “Community Picks” pie eventually haha.

I think for the pie I’m proposing, the tokens should have one or more of the following characteristics (the more the better):

-capped token supply
-profit/revenue sharing
-a token buyback program (e.g. 15% profits used to buy back tokens)
-a token burning program (reducing token supply)
-a vesting program (to discourage immediate selling)
-rewards for long term holders
-distributed token ownership (whales don’t control large portion of outstanding tokens)
-liquid (readily available on exchanges)

If anyone could help find tokens that have the characteristics above, maybe we can test it out with a model.

Tokens with solid tokenomic design should increase its value and in some cases be deflationary. By holding these tokens in a pie, it should, in theory, increase the NAV of the pie over time as well.