Governance Token Mechanisms for Octoken Holders

Governance Token Mechanisms for Octoken Holders

The OCTO governance token is an essential part of the OctoFi ecosystem and is designed to foster the creation of decentralized finance oracles tentacles. Absolute openness and transparency are the underlying principles through which the Octoken Project will equip stakeholders to support the wider community in general.

DeFi’s integrity depends on reliable data, much of which is provided by oracles and related infrastructure. The systems comprising OctoFi are governed through the OCTO governance token otherwise known as — ‘Octoken’ — intended to be held by a decentralized community of ‘Octonauts’ who are incentivized to govern efficiently and effectively.

OctoFi is dedicated to supporting the emergence of a user-owned financial ecosystem whose best interests are well aligned. In order to achieve the best possible distribution of ownership, OCTO governance tokens shall be disbursed through various mechanisms. As explained in greater detail throughout the Octoken project page, the bonding curve is step one, but let’s take a look at the broader picture.

Octoken allocations

The total 800,000 OCTO supply is allocated as follows:

  1. Bonding curve: 125,000 OCTO for public sale commencing 14 September 2020 at 00:00 UTC as per the full details provided.
  2. Interest program: 200,000 OCTO split equally between interest yielding contract and airdrop, both reserved for private and public sale investors.
  3. Early backers: 200,000 OCTO among small strategic cohort gathered during inception to ensure best possible deployment and transition.
  4. Project reserve: 275,000 OCTO assigned to transparent project fund for allocation by governance token holders pending decisions made on subsequent DAO proposals.

Octoken distribution mechanisms

OctoFi will utilize a number of governance distribution mechanisms to begin decentralizing from day one, including the initial bonding curve distribution, incentives for long term holders, ecosystem utilization, participation in governance, and funding of project improvements.

1. Octoken project

OCTO governance tokens will be distributed through a bonding curve sale that commences 14 September 2020 at 00:00 UTC. A total of 125,000 tokens will be made available to participants and we welcome those who support the development of the DeFi ecosystem.

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. 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.

2. Aquafarm project

OctoFi’s interest (and airdrop) program provides an attractive incentive scheme for holding governance tokens for 3, 6, and 12 month runtimes. Our own smart contract, and furthermore additional lending solutions, will provide the yield required for what we are calling Aquafarming. While the interest program allocation is specified, the potential for developing further yield bearing apps for OCTO holders is within reach in the near future.

3. Tentacles project

Decentralized finance oracles tentacles are the core component of the OctoFi ecosystem. All Octonauts, regardless of holdings, are encouraged to participate in the various applications associated with their OCTO tokens.

As a community we are committed to advancing an open and transparent standard for data oracles that are truly owned and operated by token holders. As part of the Tentacles platform, further token distributions are associated with:

  • Remuneration for sourcing and provisioning data collection
  • Funding development resources and platform support
  • Gaining access to live data feeds and API marketplace

Octoken governance functions

The primary use-case afforded by project supporters will be the foundational governance decisions. During early stages, OCTO governance tokens shall be used for the following:

  • Participating in voting to settle governance decisions
  • Verifying data tentacles and support systems with staking

Reminder: the Octoken bonding curve distribution and decentralized exchange allocation of the OCTO governance token commences 14 September 2020 — full details on the project page.

Governance Token Mechanisms for Octoken Holders
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Governance Token Mechanisms for Octoken Holders