Contributor pTokens, Seed Tokens and you

Official Apr 26, 2022

Miners!

We talked about Dividends previously, and in this article, we will talk more about pTokens (pCNVs) and Seed Tokens (bbtCNVs).

pCNV:  Contributor tokens
bbtCNV: Seed investor tokens

pCNV

pCNVs(pTokens) are a way to reward contributors from Concave’s community and working teams. Holders of pCNV can claim dividends, redeem for CNV, and trade on Concave’s native AMM, Gemswap.

There is a total supply of 33,300,000 pCNV which are held by the Concave treasury.

The total supply of pCNV represents a constant claim on 10% of CNV’s circulating supply.

Therefore, as CNV supply grows so does the amount of CNV claimable by pCNV holders. CNV claimable by pCNV is maximized at a terminal supply of 333,000,000 CNV.

Prior to terminal supply, each pCNV is worth less than 1 CNV. At terminal supply, each pCNV can claim 1 CNV. Once pCNV are redeemed for CNV they will be burned.

CNV Claimable by pCNV Against Total Supply

Example:

Chad owns 0.025% of pCNV ie. 832,500 pCNV and therefore has a claim on 0.0025% of CNV supply.

At a CNV supply of 1,000,000 Chad can claim 2,500 CNV with his full allocation.

If supply were to grow to 16,500,000 Chad can now claim 41,250 CNV.

At terminal supply of 333,000,000 Chad can claim 832,500 CNV ie. 1:1 pCNV to CNV.

pCNV Vesting Schedule

All pCNV holders are also subject to a vesting schedule such that any individual's pCNV allocation will unlock over time.

The vesting schedule for pCNV allocation begins with a cliff 3 months after protocol launch. After 12 months, pCNV allocations grow linearly and are maximized at 24 months.

A Share of Concave's Dividends just by Unlocking

All pCNVs unlocked and allocated can claim a share of Concave's dividends without redeeming pCNV for CNV. Dividend claims on pCNV will receive the highest boost associated with the reward. Furthermore, pCNVs share of the dividend is capped due to the supply cap imposed on pCNV.

Boosts, pCNVs & Staking Positions

Staking Term 

Dividend Boost

45 Days

1.25

90 Days

1.50

180 Days

1.75

360 Days

2.00

pCNVs

2.25

Note: pCNV will be fully transferable and tradable. This will allow users to provide liquidity for pCNV trading pairs on Concave’s Gemswap. This will support speculative and arbitrage opportunities.

pCNV will be tradable!

pCNVs can be redeemed for CNV directly in the Concave protocol without providing collateral. Prior to terminal supply, each pCNV is worth less than 1 CNV. At terminal supply, each pCNV can claim 1 CNV. Once pCNVs are redeemed for CNV they will be burned.

For a more in-depth explanation of pCNV, please refer to our primer here.

bbtCNV

bbtCNV(Seed tokens) are tokens issued to seed investors. These are offered to seed investors whose goals are aligned with CNV and are in for the long term.

As the earliest adopter, seed investors get their bbtCNV at the price of $10. bbtCNV gives the holder the right to claim CNV at a 1:1 ratio over the vested period.

The total amount of bbtCNV is 619,000 tokens, reflecting 0.185% of the terminal CNV supply.

bbtCNV Vesting Schedule

bbtCNVs are subjected to a 2 months cliff and it is vested over 12 months. The first unlock upon completion of 2-month cliff is at 2% of their bbtCNV holdings. This percentage increases until the end of 12th month when bbtCNV holders can redeem 100% of their holdings. Seed investors can only redeem their bbtCNV starting month 2 in a controlled manner.

A Balanced Mechanism for Long Term Staking

Although seed investors may seem to get a steep discount compared to pre-sale tokens, they are not able to stake or earn dividends on their bbtCNV tokens.

This balanced mechanism ensures that stakeholders are incentivized to have a longer-term investment horizon and have skin in the game.

*Note that the unvested bbtCNV will NOT grow as supply grows so they will be diluted. This means that bbtCNV is not necessarily a better deal than the aCNV.


That's all for contributor pTokens, seed tokens and you!

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