Concave Tokenpedia

Policy Jan 27, 2022

Goal: In light of (1) upcoming whitelist events, (2) changes to the Tokenomics for seed investors post follow-up conversations with them amid market volatilities (which just wrapped up yesterday), we want to provide full transparency to our community on the detailed structures and mechanisms of each type of tokens and the rationale behind why we structure them in certain ways. So that you know what exactly you are investing your capital/time/trust in.  

Token details: There are 3 types of tokens, (1) aTokens to WL community members (these are precursor tokens which can be swapped 1:1 into native tokens after launch), (2) presale tokens to seed investors - we call it bare back token or BBT (not BBC, thank you), and (3) pTokens - the Tokens which will be rewarded to distinguished community contributors and team members. Here are the detailed mechanisms on each:

  1. aTokens: Price is $50 per token. These are offered only to the community members who are qualified for WL on Concave's initial token supply. WL community members can buy them up to their respective allocated amounts. These can be swapped into Concave native tokens and stake right after launch without any cliff period or vesting schedule.
  2. BBT: Price is $10 per token. These are offered to seed investors with allocations in the range of a few hundred thousands. There is both a 1-month cliff and a vesting schedule (see below), which means seed investors can only redeem their BBT starting month 2 and in a controlled manner. Note that the unredeemed BBT will NOT grow as supply grows so they will be diluted. This means that BBT is not necessarily a better deal vs. the aToken.
  1. pToken: You do not pay for pTokens; you have to earn it with your high-quality contributions. pTokens will be re-worked a bit in light of the creation of BBT, but the model and structure of the pToken will still mostly follow the initial primer. The only meaningful changes you should expect are the amounts of allocations, i.e. there won't be any pTokens allocated to investors any more in light of BBT, and the amounts of pTokens which team and community will receive are likely going to be more than initially planned or communicated.  

Token rationale:

  1. aTokens: The goal of aToken structure/pricing is to maximize the chance and upside for ALL WL community members to capture meaningful returns on their investment and also the flexibility to do so. We think $50 is a very reasonably attractive price for WL members, especially in light of Concave's money making USPs and future dividend distribution mechanisms. We think an artificially low WL price will cause noise and more volatility which could very much hurt the project and the collective interest of the community under the current market condition.
  2. BBT: The goal of BBT is slightly different from aToken. We want to construct a low breakeven baseline for the seed-investors which is why the price per token is lower than the aToken. You can view BBT as a cheaper but much more constrained/controlled aToken which means their upside potential is also controlled. We created the cliff and vesting schedule on these BBTs to (a) mitigate the risk of dumping at early stage of the project (especially given the relatively larger size of these BBT investments) and (2) also incentivize these investors who are essentially our partners to help us achieve the long term success of this project.
  3. pToken: mostly explained in the initial primer. TLDR = we want to make distinguished contributors real stakeholders who will be motivated to fight for the long term success of Concave.