All About Token Economy
C42 is an experimental ERC-20 platform token with both revenue and governance functions. Here are the brief Token Economy explanations.
C42 Supply Breakdown
▶ 10.24 millions: Total Supply
▶ 921600: Crowd Sale (9% of Total Supply) available at around $1.46 per C42 on Oct 3rd, at rough ETH equivalent during time of sale.
▶ 9318400: to be minted by platform participants gradually(91% of Total Supply).
Initial Sale Details
9% of total supply would be provided for Clover42 believers and early participants. Will announce the token launch and token sale contracts altogether via Medium first, then Twitter and official Telegram channel.
Based on our quantitative model, one can get the lowest price possible of C42 only from initial sale period, as the “gift” to early believers. But to avoid the possibilities of sharks monopolizing the sale and irrationally selling out during the early stage of ecosystem development, we apply a creative locking mechanism, by dividing tokens purchased into C42 and C42L：
● C42, 20% out of total purchased during initial sale, would be “released” immediately once the platform official launched around early Oct 2020.
● C42L, 80% out of total purchased during initial sale, would be “unlocked” gradually by a linear formula, depending how many of which holders choose to stake in the liquidity mining pool. One can get them fully unlocked by 35 days if stake 100% unlocked C42 for mining. The formula would be listed in the official website.
Liquidity
In the event that C42 sells out, and no purchasers have initiated a Uniswap pool. We will create one with ETH and C42 at around $1.9, a modest increase from the initial sale.
Same plan for C42 and DF9 liquidity pool before DeFi9 game launched.
In DeFi9, for now the only prediction market available upon launching, 3 events would triggered repurchasing C42 from UniSwap and burning:
1. There is at least one 1st prize winner in current around.
2. Fixed number of rounds past, in any of which there is no 1st prize winner.
3. The fixed threshold on investment vault is reached.
As we can see, the liquidity must be quite active every time such event could happen, not only in UniSwap but also on CEXs, for plenty of arbitraging and hedging strategies and opportunities.
Inflation or Deflation
Total supply is settled and periodical burning is scheduled.
Hence, Deflation.
Incentives
There are multiple incentive mechanisms for different roles during various stages.
● Initial Sale Buyers: who also intend to believe the model and expect the high value increase in relatively far future. Single token mining pool would generate bigger mining power to gain more C42.
● Early DeFi9 Participants: also enjoy lower mining cost per DeFi9 and bigger mining power of DeFi9 & C42.
● Speculators: Betting fanatics would try lucks for large return by winning the 1st prize.
● DeFi Scientists and Enthusiast: knowledgeable users would increase their possibilities of winning bigger prizes.
● Skilled Traders: Due to the semi-random C42 repurchasing events, surging of prices would be guaranteed. And it would happen quite frequently by design. So traders with analytical skills and experiences would take fully advantage of such events for trading momentum.
● Community Leaders and KoLs: Influences would be “cashed out” for referral rewards of market tokens, if one begins participating from their links for register.
● Normal/New Users: just mining DeFi9 and C42 automatically, and holding C42 for no-brainer long term investment return.
● Prediction Market Creator/Developer: Creativeness would be heavily valued as Clover42 ecosystem participants and volume contributors, by gaining profits from bringing the new market into Clover42.
In Summary, we believe Clover42’s incentive mechanism perfectly form the Closed Loop of participants, problems, incentives, and solutions, the basic 4 elements of any tokenomics. Hence the flourishing of Clover42 is not possible, but INEVITABLE.
