Emission
Last updated
Last updated
The emission process is divided into three sequential steps:
Burning of Unused ABRA Tokens: Before launching Cadabra 2.0, all unallocated ABRA tokens will be burned.
Initial Allocation of veABRA Tokens: For protocol governance.
Initial Emission and Weekly Emission Start: The initial one-time emission of ABRA followed by the launch of the weekly emission algorithm.
veABRA tokens are created by locking a specific amount of ABRA. The locking is for four years with an automatic, indefinite lock extension. These tokens will be used to vote and stimulate liquidity inflow into core and new strategies, that is especially important during the first post-launch months. veABRA tokens will also be used for partner integrations.
Minting of ABRA tokens for the initial allocation of veABRA tokens will take place after the unlocking, burning of unsold ABRA tokens and team vestings. In other words, it will happen when only the tokens held by users or locked remain in circulation, but before the issuance of tokens described in the 'Initial ABRA Emission' section below.
The number of ABRA tokens for this purpose is determined by the following rule: 100% (or more) of the amount of already locked ABRA tokens, but not less than 50% of the tokens in circulation.
The veABRA tokens are allocated into three target pools:
ABRA Vote Power Pool (40%): Used exclusively for voting for USDT/ABRA liquidity pools.
Ecosystem Pool (30%): Used for voting on various strategies, including promoting new ones or USDT/ABRA liquidity pools in case of ABRA Vote Power Pool (1) is not enough.
Partners & Integration Pool (30%): Reserved for partnerships and integrations with other protocols.
Rewards from initially created veABRA, such as Rebase yield (from locking) and Underlying Protocol Rewards (from voting on strategies), will support the growth and development of the Cadabra platform.
The initial emission is 230 000 ABRA and is divided into the following pools:
Investor Fund: 150 000 ABRA (8% of the subsequent three-year emission not including airdrops). Three-month cliff, with linear vesting over one year.
Marketing and Operations: 80 000 ABRA (6% of the subsequent two-year emission not including airdrops). Fully available at project launch, used for promotion, marketing activities, listings, legal, and management.
The number of ABRA tokens for airdrops will be determined by a vote among veABRA holders. The team will propose several options, and veABRA holders will choose the one they consider the most optimal.
The base weekly emission size is 20,000 ABRA, decreasing each subsequent week by 1% from previuose week.
Promotional Period
During the first 4 weeks post-launch, increased emission rates apply
1 week (x1.7)
34000
2 week (x1.4)
28000
3 week (x1.2)
24000
4 week (x1.1)
22000
5 week (base)
20000
6 week (x0.99 from 5 week)
20000*0.99=19800
N week (x0.99 from N-1 week)
The weekly ABRA emission is distributed across target pools in proportions shown on the diagram. Some pools implement token-burning mechanics, so the final size of each pool is calculated according to the rules below.
User Incentives pool
The proportions for pools under the "User Incentives" umbrella are flexible (but collectively make up 85% of the total emission) and are calculated as per the rules outlined below.
Base distribution of weekly emission by pools:
[1] Strategies Rewards
43%
[2] Rebase
23%
[3] Referral rewards*
12%
[4] Holder Bonus*
7%
[5] Core contributors & grants**
10%
[6] Team**
5%
*Pools with burning of unallocated balances. These pools indicate the maximum possible emission size. See the respective sections for more details.
** Pools that will undergo proportional token burning in case of token burns in pools marked with a single star (*).
Before launching Cadabra 2.0, the team reserves the right to reduce the base emission size. All dependent amounts will be recalculated proportionally, including the first four weeks emission, and initial emissions.
The team may also propose changes to the ABRA token emission algorithm and any associated adjustment coefficients for voting.
The size of the Rebase Pool [2] is the ratio of all locked ABRA tokens to the total ABRA supply but cannot exceed 23% of the weekly emission:
Pools [1] Strategies Rewards and [2] Rebase are flexible and together make up 66% of the weekly emission.
The number of ABRA tokens burned in the Referral Rewards Pool [3] depends on the referral rewards earned by users. The maximum emission size is achieved if all users are referrals, which is unrealistic, so unclaimed tokens are burned after referral reward distribution.
The amount of ABRA burned in the Holder Bonus Pool [4] depends on the effective weekly rewards for liquidity providers in USDT/ABRA liquidity pools (part of Strategies Rewards [1]).
Burning in the Core Contributors & Grants [5] and Team [6] pools is used to make share of those pools always 10% and 5%. The number of ABRA tokens burned depends on the burn results in the Referral Rewards [3] and Holder Bonus [4] pools. These pools are reduced proportionally to the percentage of tokens burned in [3] and [4] relative to the total emission. So
