In this article you’ll find information about:
- $BET , $veBET and $brTokens
- Revenue Distribution
- Token Allocation and Distribution
*Note: Tokenomics may be subject to change in the future.
High-level overview:
- BET = ChainBet’s native token. Freely tradeable.
- veBET = Voting escrow BET. Obtained by depositing BET into the voting escrow contract, and locking it for a period from 1 week to 1 year. Non-transferable.
- veBET holders earn a share of protocol revenue in the tokens of the games being played (e.g. $wBTC, $wETH, $USDC).
- brToken = Bankroll token. This is a token given to bankroll liquidity providers (single staking).
- brToken holders earn a share of revenue, in addition to a base yield accumulated from our bankroll yield strategies (e.g. AAVE).
- This will be paid out in the token you provided liquidity with (e.g. $wBTC, $wETH, $USDC).
$BET & $veBET basics
$BET is the native token at the center of ChainBet’s ecosystem. It currently has only two purposes: voting and staking. In order to gain access to both these functionalities, you are required to lock your $BET into $veBET.
$veBET is a governance token with a time-weighted mechanism, similar to $veCRV. It gives you voting power inside the DAO as well as letting you capture revenue generated by the protocol. Rewards captured by $veBET holders are a direct reflection of the assets wagered, meaning that:
When the protocol earns wBTC, wETH, USDC … veBET rewards will be in wBTC, wETH, USDC…(etc)
Voting Power & Rewards
The amount of governance token you receive depends on the locking period of your $BET. The longer you lock, the more voting power you have. For example, if you lock 1,000 $BET for 6 months, you will have 500 $veBET. The minimum locking time is one week and the maximum locking time is one year.
Lock 1,000 $BET for…
1 years: 1,000 $veBET
0.5 year: 500 $veBET
0.1 years: 100 $veBET
To further incentivize the long-term prosperity of the protocol, the $veBET voting power weight linearly decreases as the escrowed tokens approach their lock expiry. This is done to avoid a scenario where holders no longer have strong incentives to act in good faith the closer their locked position is to maturation.
Voting Power Linear Decay
Voting Power Based on Lock Time
The protocol will provide the opportunity to unlock before the expiry date, however, a penalty will occur. If you unlock before the expiry date, you will have to pay a fee on the amount of $veBET you have locked. This penalty will then be redistributed among existing holders in the form of $BET tokens. The goal of this penalty system is to incentivize behaviors that benefit the protocol’s long-term health 💎.
Penalty Based on Duration Before Expiry Date
The size of the penalty depends on the remaining time before the expiry date. Minimum amount of the penalty is 15% of your stack.
Bankroll Basics
If you are not familiar with the open bankroll of ChainBet, please read our previous medium.
With an open bankroll, anyone can now supply tokens to any existing bankroll. In exchange, you will receive a brToken. For example, if you were to supply a bankroll with USDC, in exchange you will receive brUSDC. Similar to LP tokens, these brTokens are a representation of your share of the pool, and hence your share of the profits. There will be a 24h lock-up period before retrieving to avoid any short-term manipulation.
In contrast to $veBET holders who earn in all tokens being played, $brToken holders are only exposed to the assets they provided.
e.g. bankroll earns wBTC, you are rewarded in wBTC. Bankroll earns wETH, you are rewarded in wETH, etc.
Revenue Distribution
The Protocol generates revenue based on Game/Product activity. This revenue will be redistributed to the bankroll, $veBET holders, and to the treasury.
As for now, there are three ways for the protocol to generate revenue: Player vs House(PvH), Player vs Player(PvP) and SportsBetting.
Revenue distribution is as follows:
*Amount% can be changed through governance and can be subject to change before mainnet release.
Note: TBD by team
Token Allocation and Distribution
The breakdown for token allocation is as follows:
ChainBet has a fixed supply of 100 million tokens. There are no emissions and the entire architecture has been built around veBET. It has been designed to reward those that are locking their tokens for the longest time, subsequently reducing the circulating supply and producing both cash flow and price appreciation for those that are aligned with the long-term aspirations of ChainBet.
It’s also worth noting that the airdropped tokens (4% of supply) will airdrop in different months after launch (refer to the airdrop article for more details). This has been designed to reduce selling pressure. Future game theory will come out from the ChainBet team about how to encourage those that were airdropped to hold.
The allocated tokens to the public sale will be conducted over two sales.
