Token economics
Smart contract - tokenomics - staking/buybacks
We are currently considering 2 options for the tokenomics :
Option 1 : Stacking
Release a token with a fixed initial supply and a possible minting fonction.
To start with, users & investors who contribued to the fundraise would get airdropped a fixed amount of token proportionnal to their investement.
The token will not have any inflationnist aspect until our assets (WhiteRock investements) will generate yields. Then we will introduce a stacking fonction and stackers will be rewarded in our native token.
Why stacking & Why tokens in reward ?
Introduction of stacking might reduce speculation on long term & tend users to stake and hold.
We think so introducing a stacking with some bonus for long term stackers should be a smart way to make people letting sit their investement into the stacking contract and watch it auto compound.
Ex of mechanism : Periodic token airdrop for holders with conditions
Have your token stacked since at least 30 days
Extra % bonus for stackers over 60 days, etc.
Reward in our token will autocopound (tokens earned goes directly in stacking). If an user decide to cashout he doesn't have multiple tx to do, simply unstack and sell.
Rewarding in our own token contribute to keeping around the liquidity, (No need to convert directly our fiat income to crypto to pay out stakers). This is allowing us more flexibility & more efficience with our money management. More posibilities to scale the WhiteRock ecosystem.
You might think so it will create a sell presure for eventual people that want to sell their assets and it's true, that why of course we would allocate a part of our tresury to take some arbitrage decision whenever we consider that our native token price is undervalued.
Cons of this :
Making this token mintable mean we do not have a fixed supply, which can be a potential obstacle to attract new users
The price action of the WhiteRock token will not be as much healthy as if we were doing weekly buybacks. The chart of the token is always taken in consideration by new investors.
Option 2 : Buybacks
Release a token with a fixed initial supply and no minting fonction.
To start with, users & investors who contribued to the fundraise would get airdropped a fixed amount of token proportionnal to their investement.
The token will not have any inflationnist aspect and will go deflationnist over time. As soon as we will generate yield our community will decide how should we spend the profits generated, setting weekly/monthly buybacks is a way to keep the WhiteRock native token higher over time.
Why buyback our token ?
Buyback of our own token is the most popular and easiest way to re invest our profits and it benefit to all holders
Thought a fixed supply with no tokens allocated for stacking, no minting fonction, fully dilluted market cap = market cap, external potential investors are seeing this as a strong sign of trustability.
Compared to an increasing supply token the chart of our native token would look more healthy.
Cons of this :
If we are re investing our profits into straight buybacks periodicly, it mean we are not increasing our tresury at the same level of scale as with a stacking mechanism.
Buyback will benefit to the entierty of the token holders, while a stacking system could be more efficient favorizing holders who are stacking tokens.
Overall in my opinion, the stacking option is a much efficient way for 2 reasons, long term holders benefits & scalling tresury. Buyback do have a very nice impact on the marketing side and it's also very understandable for people to prefer this option. In any ways, the decision will remain to the community. (Of course we are open to other token economics proposals)
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