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Tokenomics: You can rise with it, or fall because of it.
The purpose behind PrimeDAO’s token design is to generate the most optimal skin-in-the-game effect.
In this thread we explain how PrimeDAO’s tokenomics work:
The purpose behind PrimeDAO’s token design is to generate the most optimal skin-in-the-game effect.
In this thread we explain how PrimeDAO’s tokenomics work:
PrimeDAO will have 2 native tokens for different purposes:
(1) $PRIME will accrue the value generated in the PrimeDAO ecosystem.
(2) $REP will be a non-transferable-token that gives the right to participate in governance.
This dual token design is fundamental to PrimeDAO.
(1) $PRIME will accrue the value generated in the PrimeDAO ecosystem.
(2) $REP will be a non-transferable-token that gives the right to participate in governance.
This dual token design is fundamental to PrimeDAO.
$PRIME holders:
Motivated to see value accrue to $PRIME and support DAO initiatives.
However, they might not care about actively governing PrimeDAO - so they don’t necessarily need voting rights.
To earn voting rights, they lock-in $PRIME and generate $REP.
Motivated to see value accrue to $PRIME and support DAO initiatives.
However, they might not care about actively governing PrimeDAO - so they don’t necessarily need voting rights.
To earn voting rights, they lock-in $PRIME and generate $REP.
$REP holders:
PrimeDAO’s assembly who govern the DAO.
Motivated to see Prime’s values and objectives are achieved.
To further align $REP holders with the value they help to create for $PRIME holders, they receive a small $PRIME stipend.
PrimeDAO’s assembly who govern the DAO.
Motivated to see Prime’s values and objectives are achieved.
To further align $REP holders with the value they help to create for $PRIME holders, they receive a small $PRIME stipend.
We learned from two main DeFi governance mistakes, and kept those lessons in mind while approaching this token structure 
If the DAO is:
1. Entirely governed by token holders: leads to voter apathy and plutocracy
To maintain political decentralization, this must be avoided.
2. Entirely governed by a core team: leads to an apathetic and unsupportive ecosystem.
Community must be a part of the gov
1. Entirely governed by token holders: leads to voter apathy and plutocracy
To maintain political decentralization, this must be avoided.
2. Entirely governed by a core team: leads to an apathetic and unsupportive ecosystem.
Community must be a part of the gov
So, we are creating a DAO governed by those interested in governing it, while maintaining permissionless on-boarding for anyone who commits to doing so.
However, irrespective of their participation in governance, we want to build an aligned community that shares the same channel through which all members benefit from PrimeDAO’s success, irrespective of participation in governance. That will be, $PRIME.
To summarize PrimeDAO's tokenomics philosophy:
To participate in governance, one must DEMONSTRATE skin-in-the-game.
To excel at governance, one must HAVE skin-in-the-game.
Hence:
Lock-In Prime
Get REP
Participate with REP Get Prime
A beautiful virtuous cycle
To participate in governance, one must DEMONSTRATE skin-in-the-game.
To excel at governance, one must HAVE skin-in-the-game.
Hence:
Lock-In Prime
Get REPParticipate with REP
Get PrimeA beautiful virtuous cycle
You can find more information on PrimeDAO's tokenomics and its Initial Decentralized Offering here: https://medium.com/primedao/prime-tokenomics-and-initial-decentralized-offering-73ae04021c6d
