OctoFi will distribute the OCTO governance token through the Octoken project, a bonding curve distribution starting 14 September 2020 at 00:00 UTC. We welcome all those who support the development of the DeFi ecosystem and a total of 125,000 tokens are being made available to participants.
What is a bonding curve offering?
Bonding curves are smart contracts designed to provide tokens with their own market by creating buy and sell functions. Token prices increase and decrease as they are bought and sold from the contract respectively. The number of tokens on the market, and the average price of each token per transfer batch, are the characteristics that determine a trade.
Buyers gain control over the project and team, to a degree, thanks to the contract autonomously creating a market and remaining 100% collateralized at all times. Bonding curve participants can essentially sell tokens back at any time over a uniswap marketplace pair, for a fair and transparent means of distributing governance rights.
“…risks are minimised, requiring both the developer and the vote to be compromised to cause any real damage.” — Vitalik Buterin
By distributing governance in such a way, token bonding curves provide fairness and transparency. They are a sustainable way of striking a balance between the team and project supporters, to hold everyone accountable in the best interests of the community.
The Octoken bonding curve offering
It is critical to the project that early adopters are incentivized to foster a supportive environment and as such, longevity for the governance token’s utility. The bonding curve distribution method has been chosen as the first method for getting OCTO governance tokens into the hands of public stakeholders. The only prior allocation made is that of 200,000 OCTO among a small strategic cohort to ensure the best possible deployment and transition for the project.
Inspired by the ‘sigmoid bonding curve’ model, OctoFi shall remunerate early supporters for their participation and commitment to DeFi in the broader sense, rather than favoring short term speculators. As explained in our governance mechanisms post, the Octoken project is the first mechanism through which we are decentralizing governance of OctoFi.
| Batch | Allocation | Price (USDC) |
|---|---|---|
| 001 | 8,000 | $0.18 |
| 002 | 9,000 | $0.28 |
| 003 | 10,000 | $0.38 |
| 004 | 11,000 | $0.48 |
| 005 | 12,000 | $0.58 |
| 006 | 13,000 | $0.68 |
| 007 | 14,000 | $0.78 |
| 008 | 15,000 | $0.88 |
| 009 | 16,000 | $0.98 |
| 010 | 17,000 | $1.08 |
Bonding curves are a newer concept and their implementations are improving thanks to the collaborative nature of decentralized finance. In support of fostering innovation and our commitment to ongoing improvement, all contracts are open source for auditing by anyone who’d would like to contribute.
Full details of the Octoken bonding curve distribution and decentralized exchange allocation of the OCTO governance token are available here.
Bonding curve summary:
- Allocation of 125,000 OCTO for bonding curve sale
- Equates to 15.625% of total supply with 800,000 hard cap.
- Starting 14 September 2020 at 00:00 UTC
- Ending when allocation sold out
- Initial price of $0.18
- Denominated in USDC
