AC Rewards

ACoconut adopts an open reward program to incentivize anyone who provides resources and contributes to the optimal functioning and usage of the ACoconut ecosystem.

Total AC Supply = 21,000,000

Liquidity Allocation accounts for 15,000,000 AC, representing 71.4% of Total AC Supply. The entire Liquidity Allocation will be distributed via liquidity mining programs and it will be used to incentivize liquidity providers, ecosystem users and community Governors. Distribution mechanism will be determined by community voting organized by ACoconut DAO.

Development Allocation accounts for 6,000,000 AC, representing 28.6% of Total AC Supply. The entire Development Allocation will be distributed to NUTS Finance DAO and it will be used to incentivize developers, strategic partners, community members and core team members who help ensure the usability and growth of the ACoconut ecosystem via ongoing security audits, application development, system upgrades and marketing promotions.

Emission Mechanism

The emission mechanism is a dynamic system for fair and inclusive distribution of AC tokens. The emission schedule is designed to reflect real-time usage of ACoconut applications.

The total AC supply is 21,000,000, with no pre-mine or presale. For every 7 AC minted, 5 AC are used for liquidity mining and 2 AC are reserved for core developers. Therefore, a total of 15,000,000 AC are used to incentivize ecosystem participants through liquidity mining programs.

The AC emission schedule is set at 1% of total supply per tranche. Each tranche is represented by a liquidity mining pool. In other words, distribution of the total AC supply will be divided evenly into 100 tranches; with 210,000 AC tokens in each tranche, 150,000 AC will be emitted via liquidity mining and 60,000 AC will be reserved for Developer Allocation.

At the start of each week, a single tranche of AC token is minted with 60,000 allocated for Development and 150,000 allocated for liquidity mining distributed evenly over a 7 day period.

The core team along with community Governors may adjust the AC emission schedule on a periodic basis via on-chain governance proposals. The emission schedule for future liquidity mining pools will be determined based on project development and level of decentralization achieved.

Updates on the emission schedule will be disclosed prior to the start of every liquidity mining event.

Ecosystem Incentives

To incentivize application usage and community governance, application users and Governors will be rewarded AC from the Liquidation Allocation. Specifically, application usage that would lead to earning AC rewards include:

  • Mint and hold acBTC

  • Supplying liquidity to acSwap

  • Supplying liquidity to acVault

  • Supplying liquidity to acLoan

Liquidity contributed to any AC applications are weighted equally in terms of rewards. For instance, a user will earn the same amount of AC given the same amount of liquidity is supplied to acVault or acLoan (assuming time is kept at a constant).

To serve as a Governor, AC holders can stake AC to take part in community governance decisions. In return, Governors may earn AC and/or fees generated through applications.

In reality, application usage and community governance rewards are subject to change based on the liquidity supplied, amount of AC staked and fees generated in the ACoconut ecosystem. Ultimately, reward distribution will be decided by Governors once sufficient decentralization has been achieved for the ACoconut ecosystem.

Example:

Variables assumption for Pool 20:

  • AC emission duration is fixed at 7 days

  • Total Liquidation Reward for Pool 20 = 150,000 AC

    • 80% is allocated for acBTC LPs = 120,000 AC

    • 20% is allocated for community governance = 30,000 AC

Alice supplied 50 acBTC to the acVault pool for 5 days. The ecosystem usage reward for acVault is 150,000 AC and a total of 2,000 acBTC supplied by all LPs.

Based on these values, we can calculate the AC earnings for Alice:

  • t = Duration of liquidity supplied by user

  • T = Emission duration for the period

  • R = Total AC reward for the period

  • l = Amount of liquidity supplied by user

  • L = Total liquidity supplied by all users across all applications

Reward = (t/T * l/L) * R

Over the course of 5 days, Alice will receive a total of 2,142.86 AC for supplying 50 acBTC to acVault.