Overview
DAO proposes to adjust $UNO tokenomics and vesting schedules to fund new product developments, which will add value to $UNO over time in a sustainable manner. New developments include partnerships with market makers to bootstrap open interest and the launch of the L2-oriented products. All of these initiatives aim to increase token value by increasing UnoRe usage and fee revenue. We feel that adjusting the $UNO tokenomics to fund new protocol developments is necessary to continue innovation and market share against our competition in the web3 insurance and cybersecurity space.
Current token distribution
Below is an update on the financial landscape of UnoRe DAO four months after the exploit.
| Token Usage | Amount |
|---|---|
| Pool staking reimbursements | 32.4M |
| Staking rewards reimbursements | 7.8M |
| veUNO reimbursement | 85K |
| Pending rewards on 14/11/2013 | 2.4M |
| Post-hack token burn | 64.8M |
| Snapshot of token distribution* | Amount |
|---|---|
| Liquidity in BSC bridge | 54.7M |
| Staking pools | 15.3M |
| veUNO locked | 2.8M |
| Private sale (unclaimed from 2021) | 7.6M |
*approximate as of 05/04/2024
| Top metric | Amount |
|---|---|
| Max total supply | 316M |
| Circulating supply* (approximately) | 120M |
| Unlocked supply up to month 36: | 240M |
*This amount excludes staked capital, veUNO, unused bridge liquidity (23.6M), and unclaimed private sale tokens
DAO possesses a substantial supply of 43.8 million $UNO that is now unlocked. However, the team made a strategic decision to vest them for at least a year. This action not only demonstrates their sound financial stewardship, particularly during the exploit and subsequent reimbursements but also serves as a heartfelt thank you to the community. The additional vesting is the new teamâs way of expressing gratitude for the continued support and trust in their mission.
Proposal
Reorganize tokenomics as per the table âNew Distribution Scheduleâ to:
- Fund development for L2 product portfolio
- Fund partnerships and agreements with market makers for bootstrapping liquidity
- Unlock access to Insurance Liquidity to enable higher coverage pools capital
- Reduce token vesting for select categories
- Unite multiple expense categories under one Treasury
- Introduce an extra vesting period for the team
Impact of Proposal on Tokenomics
Treasury and insurance liquidity will be considered to fund the above initiatives.
Old Distribution Schedule:
| Token Distribution | Percentage of Supply | Terms of Unlock | Status = Month 36 |
|---|---|---|---|
| Private sale and Advisory | 14.09% | 12 month vest, 3 month lockup | 100% unlocked |
| Team | 7.54% | 12 month vest, 24 month lockup | 100% unlocked |
| Community Incentive & Rewards | 9.1% | 72 month vest, 1 month lockup | 50% unlocked |
| Advisory, Legal & PR | 4.55% | 60 month vest, 1 month lockup | 60% unlocked |
| Operational Expenses | 8.58% | 72 month vest, 6 month lockup | 46% unlocked |
| Marketing Expenses | 12.55% | 60 month vest, 2 month lockup | 58% unlocked |
| Acquisitions | 4.16% | 12 month vest, 1 month lockup | 100% unlocked |
| Reinsurance Cell / Liquidity | 31.20% | 86 month vest | 41% unlocked |
| Treasury | 5.2% | 72 month vest | 50% unlocked |
| Crowdsale | 0.43% | No vesting | |
New Distribution Schedule:
| Category | Original share | New share | Proposed Extra Vesting | Outstanding Supply |
|---|---|---|---|---|
| Insurance Liquidity | 31.20% | 36.32% | 18 months | 43,219,117 |
| Treasury | 38.07% | 44.31% | 12 months | 52,735,635 |
| Community Incentive & Rewards | 9.10% | 10.59% | 24 months | 12,605,576 |
| Team | 7.54% | 8.78% | 12 months | 10,444,620 |
| Total | 85.91% | 100.00% | 119,004,948 |
Note 1: Treasury = Advisory, Legal & PR Liquidity & Exchange Partnerships + Operational Expenses + Marketing Expenses Acquisitions + Treasury (Old)
Note 2: Extra vesting to start from 15 April 2024 at 12:00:00 UTC and override the old schedule.
Conclusion
In summary, the proposed modifications and updated emission schedule will achieve the following:
- Facilitate UnoReâs access to a greater portion of treasury capital during the heightened market activity
- Demonstrate a prolonged dedication to Uno Reâs development by implementing an additional vesting period for the team.
- Expedite the sale of policy covers by enhancing the responsiveness of insurance liquidity rewards.
- Empower Uno Re to broaden its product range and enhance its market presence
Next steps
Dear Community,
We are opening a platform for discourse for next week. We highly value your ideas, suggestions, and feedback, and we believe that they can greatly contribute to our communityâs development.
This is your opportunity to participate in thoughtful debates and share your unique perspectives. Your voice matters, and we encourage you to use this platform to express your thoughts.
After the discourse, a snapshot vote will run for three days. This is a key part of our decision-making process, and your vote can help shape the future of our community.
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