The CurrySwap DAO approached ICP to design a new token economics model for its existing food token, CURRY. ICP design a token issuance method using a daily token auction lobby, complete with LP share staking, duration-based bonuses and migration over to Binance Smart Chain.
At the time of this writing, CURRY is an ERC20 token with a total token supply of 11.15M tokens and is currently tradable on Uniswap v2.
The CurrySwap DAO is exclusively funded by members of the DAO including the project’s developers and various token purchasers. However, in order drive awareness around its new DEX offering, the DAO needed an innovative token sale event complete with attractive rewards and bonuses.
DEX participants can use CURRY2, the v2 version of the token, towards certain functionality within the DEX’s platform, such as to participate in incentive programs and earn rewards. It was up to ICP to design the economic model behind the new token issuance.
At the heart of the offering was a method to issue new v2 tokens on Binance’s Smart Chain, as BEP-20 tokens. This decision was made due to congestion on Ethereum mainnet which has resulted in longer processing times and prohibitively high smart contract and transaction fees.
This migration required a mechanism to enable swapping of the ERC-20 asset over to the BEP-2o standard, while also incorporating a new issuance model.
ICP designed a daily auction lobby that requires generating an LP token from a BNB-ETH pool, which serves as a source of bonuses and also contributes to the project’s platform reserve.
The entire token issuance mechanism operates in an entirely decentralized manner. It is permissionless, autonomous and anonymous, allowing anyone to participate.
ICP designed a token topology that incorporated a rewards mechanism that incentivizes long-term participation and holding. The duration-based staking mechanism rewards token holders at the end of the auction lobby event. Token holders that unstake prior to the end of the event forfeit their share of additional bonuses.
This also has the effect of reducing selling pressure into the swap contract.
A secondary reward token called CHILI can be earned by staking CURRY2. CHILI is designed as an inflationary token with a decrementing issuance protocol. It can be used for future rewards from both the platform and its partners.
To wrap everything up, ICP defined the allocation of tokens, the cap on daily emissions, and token burning mechanisms from the platform’s revenues.
To create a fair mechanism for token participants, out of the total token issuance of 25M tokens, only 3.65% of the token allocation went to the team with the rest going towards Air Drops, Liquidity Pool and token sale participants.
CURRY (V1) is currently available for trading on Uniswap for a limited time. These tokens will eventually be converted to BEP-20.
DISCLAIMER: Not a solicitation to purchase, sell or otherwise transact in these tokens. Purchasing such tokens comes with great risks including the potential loss of value a substantial portion or all of your holdings. Please perform your own research and due diligence prior to making any purchasing decisions.
