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The $VIRTUE token is a standard ERC20 token on the Ethereum Blockchain
The $VIRTUE token is non-mintable and will have a maximum total supply of 100,000,000 tokens. The initial distribution of the $VIRTUE token is as such:
- 75,000,000 for the Virtue Bonding Curve
- 10,000,000 for the Community Treasury and Liquidity Acquisition
- 15,000,000 for the team and advisors (Vested alongside the bonding curve)
Bonding is a concept in which the protocol will directly offer a token to a user in exchange for another token. In the case of The Idols, the Bonding Curve is a one-way bonding curve which accepts LIDO stETH and returns $VIRTUE. The curve itself is an exponential function that has been linearly estimated. The below chart is an illustrative representation of the Bonding Curve
How to interpret this chart:
- 1.The x-axis represents how much stETH has been bonded thus far (Number in thousands (000$))
- 2.The y-axis represents how much $VIRTUE is remaining in the bonding curve itself
As x-increases initially, the drop off is steep indicating that $VIRTUE is entering circulation quickly (i.e. the price of $VIRTUE per stETH is cheap) As more $VIRTUE is bonded and we move further out on the x-axis, the slope of the curve flattens indicating that less $VIRTUE token is being emitted per stETH compared to before. (i.e. the price of $VIRTUE per stETH gets progressively more expensive) Below is a table representation of the bonding curve:
The founding team will be reserving 10,000,000 tokens for the community treasury. The vast majority of these tokens will be used to acquire liquidity for the $VIRTUE token (exact mechanism tbd). The funds will also be used for further development and server costs. All funds within the community treasury will either be used for future projects within the Idolverse or passed on to the eventual DAO.
The founding team is being allocated 15,000,000 tokens. To fully align ourselves with the protocol, the founding team allocation vests alongside $VIRTUE emitted from the Bonding Curve. As an example, when 40% of the total tokens in the bonding curve have been emitted (i.e. 40% of 75,000,000 = 30,000,000) the team will have vested 40% of its total allocation (40% of 15,000,000 = 6,000,000). If zero tokens are emitted via the bonding curve, the team allocation vested will also be zero. Additionally, there will be a 6 month lock post-vest where team members are not allowed to access their $VIRTUE.
This fully aligns the interest of the founding team with the protocol since:
- 1.Increased emissions of $VIRTUE from the Bonding Curve indicates more stETH in the treasury (increased intrinsic value of Idol NFTs)
- 2.Increased emissions of $VIRTUE from the Bonding Curve indicates people are buying $VIRTUE at a higher price (increased value for $VIRTUE holders/stakers)
In essence, the team allocation only vests if stETH is deposited into the Virtue Bonding Curve.
Note: As of 10/1/2022 the founding team has relinquished control of the 15,000,000 $VIRTUE tokens originally allocated to them.
$VIRTUE token must be staked in order for the holder to receive their proportional share of the 7.5% commission charged on Idol NFT trades. Staking has no timelock and there are no penalties/fees associated with unstaking.
It is the intention of the founding team to eventually form a DAO governing the Idolverse which $VIRTUE holders will manage.