Disclaimer: The annual percentage yield (APY) mentioned in this post is an estimate and will fluctuate over time based on external factors, such as the SPDR token market price and percentage of tokens locked for liquidity mining purposes. The SpiderDAO team has no control over these factors.
This article provides a first look into the SpiderDAO Distribution Program and explores the unique concept of Liquidity as Utility (LAU).
Liquidity mining is relatively new in crypto and is a community-focused token distribution strategy. The basic idea here is that token holders provide capital to a project, by becoming Liquidity Providers (LPs), in return for its native token. Liquidity mining allows a fair and wide distribution of tokens instead of concentrating ownership in the hands of early investors. Token ownership tends to encourage high community participation and engagement, which is crucial to building a successful DAO. From a project’s perspective, liquidity mining provides deep and stable liquidity for a token while facilitating lower slippage and a better trading experience.
The SpiderDAO Distribution
The SpiderDAO Distribution Program is designed to facilitate a long-term transfer of ownership in the DAO to users providing value to the project by becoming LPs. The program will last for approximately five years. This will allow new community members to join over time, instead of front-loading the rewards and attracting mercenary capital with no interest in the project. To facilitate decentralization of the SpiderDAO, 60% of the SPDR supply will be distributed to the community through the SpiderDAO Distribution while only 10% of the supply has been sold to investors. This means that over time, ownership of the DAO will pass to participants in the program who by definition have been long term holders of the token and maintained constant exposure to it as liquidity providers.
To qualify for the program, participants will have to provide liquidity to the SPDR/ETH or SPDR/USDT liquidity mining pools on Uniswap and then stake their LP tokens through the SpiderDAO UI.
The distribution reward will be 50 SPDR per block for the first year. Based on the listing price, the APY should start off at around 711%, if every token sold during the private sale were to be staked. The initial APY is expected to be higher if that is not the case. It’s important to reiterate that this is an estimate and the APY will fluctuate over time based on external factors, such as the SPDR token market price and percentage of tokens locked for liquidity mining purposes. The SpiderDAO team has no control over these factors.
Liquidity as Utility
Acting as a liquidity provider is an act by an individual that benefits the entire community. We believe that LP tokens should have the same utility as the underlying SPDR token, namely giving LP providers access to the free VPN. We call this mechanism “Liquidity as Utility” or LAU. By centering utility around LP tokens, we want to encourage broad participation in the SpiderDAO Distribution program, rewarding LPs through a combination of LP profits and token utility.
How can you take advantage of the LAU concept? By providing liquidity to the SPDR/ETH or SPDR/USDT liquidity mining pools and staking the equivalent of at least $500 in LP tokens. For those community members who have received or plan on purchasing the SpiderConnect Router, providing $500 worth of liquidity will complement your router with a free VPN for a fully-fledged optimal online privacy setup.
Security: Audited contracts
The SpiderDAO Distribution program marks one of the most important parts of the SpiderDAO long-term vision, as it manages the distribution of 60% of SPDR supply over the next 5 years. All our smart contracts are currently undergoing extensive security audits by an industry-leading blockchain auditor. Security of user funds is our highest priority and the SpiderDAO team is committed to making the SpiderDAO Distribution Program an intuitive, simple, and safe experience.
You can always learn more about the SpiderDAO project by visiting our website or catching us at one of many upcoming AMAs.
About SpiderDAO
SpiderDAO’s vision is to bring unparalleled online privacy to the end-user. As a Decentralized Autonomous Organisation (DAO), requires addressing the shortcomings of current DAO frameworks. We do so through a multi-layered governance setup based on hardware and software tools on top of a Fair & Resilient Hardware-based DAO built on Polkadot.
Our ecosystem, then, is built on the foundations of fair governance. It includes the SpiderDAO, SPDR Token, and the SpiderConnect Router, which come together to create a robust, scalable, and community-driven ecosystem that will keep up with the pace of technology change and stand the test of time. Today, we would like to shine the spotlight on the SPDR token and its utility within the SpiderDAO ecosystem.
Learn more about SpiderDAO:
Visit our website: www.spiderdao.io
Join our telegram: https://t.me/SpiderDAO
Join our Discord: https://discord.gg/freymYYspb
Documentation:
Our one-pager: https://assets.spiderdao.io/SpiderDaoOnePager.pdf
Our Pitch Deck: https://assets.spiderdao.io/SpiderDaoPitchDeck.pdf
Our Whitepaper: https://assets.spiderdao.io/SpiderDaoWhitepaper.pdf
