Still on the fence of whether to invest in one of the fastest growing @terra_money protocols?
The COMPREHENSIVE GUIDE to the $PRISM (& $xPRISM) token is finally here!πππ
Tokenomics, use cases and a short summary (not-sponsored) βοΈ!
A thread.π§΅
The COMPREHENSIVE GUIDE to the $PRISM (& $xPRISM) token is finally here!πππ
Tokenomics, use cases and a short summary (not-sponsored) βοΈ!
A thread.π§΅
1/ The overview π
1. Token distribution and launchπ(tweet no. 2)
2. What can you do with $PRISM?π¨(tweet no. 10)
3. What can you do with $xPRISM?π οΈ(tweet no. 11)
4. Development of token priceπ(tweet no. 19)
5. Implications and summary π(tweet no. 20)
Let's dive in! π
1. Token distribution and launchπ(tweet no. 2)
2. What can you do with $PRISM?π¨(tweet no. 10)
3. What can you do with $xPRISM?π οΈ(tweet no. 11)
4. Development of token priceπ(tweet no. 19)
5. Implications and summary π(tweet no. 20)
Let's dive in! π
2/ Token distribution and launchπ
Understanding token distribution and release (vesting) schedule is a crucial aspect when evaluating a #cryptocurrency.
As such, let's take a look at who controls what amount of $PRISM tokens and how they plan to be unlocked.
Understanding token distribution and release (vesting) schedule is a crucial aspect when evaluating a #cryptocurrency.
As such, let's take a look at who controls what amount of $PRISM tokens and how they plan to be unlocked.
3/ The token distribution is:
- 20 % PRISM Treasury
- 7 % PRISM Forge (TGE)
- 13 % yLUNA Farming Event
- 30 % Core Contributors and Service Providers
- 10 % Strategic Partners, Advisors, Collaborators
- 20 % Community Fund and Liquidity Incentives
Source: Litepaper
- 20 % PRISM Treasury
- 7 % PRISM Forge (TGE)
- 13 % yLUNA Farming Event
- 30 % Core Contributors and Service Providers
- 10 % Strategic Partners, Advisors, Collaborators
- 20 % Community Fund and Liquidity Incentives
Source: Litepaper
4/ In order to gain a better (albeit less granular) overview, we can summarize some of the categories:
- 40 % Team & Partners
- 33 % Community Fund, incentivised staking & LPs
- 20 % PRISM Treasury
- 7 % Presale
Let's look at possible implications.
- 40 % Team & Partners
- 33 % Community Fund, incentivised staking & LPs
- 20 % PRISM Treasury
- 7 % Presale
Let's look at possible implications.
5/ Team & Partners
The allocation of 40 % to team, service providers, as well as partners & advisors is in line with recent industry standards.
Prism protocol's core contributors are well-respected industry leaders:
- @jump_
- @hashed_official
- @terra_money
πππ
The allocation of 40 % to team, service providers, as well as partners & advisors is in line with recent industry standards.
Prism protocol's core contributors are well-respected industry leaders:
- @jump_
- @hashed_official
- @terra_money
πππ
6/ The value of having such big-name contributors (even the $LUNA creators themselves!) and backers cannot be understated.
Just as importantly, vesting periods regarding these 40 % are structured as follows:
- 6 months cliff (no unlocks at all)
- linear unlock from month 6 - 24
Just as importantly, vesting periods regarding these 40 % are structured as follows:
- 6 months cliff (no unlocks at all)
- linear unlock from month 6 - 24
7/ These vesting periods go a long way to show true commitment both regarding the initial launch phase (no token unlocks for 6 months!) as well as the mid-term.
Further, the linear vesting period avoids large unlocks that could lead to accumulated selling pressure.
Further, the linear vesting period avoids large unlocks that could lead to accumulated selling pressure.
8/ Many projects fail in delivering a truly fair token launch and enabling the broader community to participate in the value creation.
The presale of $PRISM avoided this crucial mistake, by structuring their presale in a way where all participants...
The presale of $PRISM avoided this crucial mistake, by structuring their presale in a way where all participants...
9/
a) bought at the same price ($0.33), enabled by a fair pricing mechanism (pledge to forge, with possibility to fully take out again) and
b) had enough time to avoid front-running, gas wars and other time-constraints.
All in all, a fair launch in our opinion.
a) bought at the same price ($0.33), enabled by a fair pricing mechanism (pledge to forge, with possibility to fully take out again) and
b) had enough time to avoid front-running, gas wars and other time-constraints.
All in all, a fair launch in our opinion.
10/ What can you do with $PRISM?π¨
$PRISM is @prism_protocol's native token and as such has multiple functionalities. You can currently use $PRISM to
- trade on @prism_protocol π±
- provide liquidity in any of the liquidity pools π
You can further #stake the $PRISM token...
$PRISM is @prism_protocol's native token and as such has multiple functionalities. You can currently use $PRISM to
- trade on @prism_protocol π±
- provide liquidity in any of the liquidity pools π
You can further #stake the $PRISM token...
11/ By staking $PRISM, you get the liquid-staking token $xPRISM in return.
Soo...
What can you do with $xPRISM?π οΈ
Soo...
What can you do with $xPRISM?π οΈ
12/ First and foremost, you can earn staking rewards simply by holding the $xPRISM token.
The current staking APR is at 22+%, after just recently having reached more than 78%.
This variability is inherently linked to the how these stakings rewards are generated.
The current staking APR is at 22+%, after just recently having reached more than 78%.
This variability is inherently linked to the how these stakings rewards are generated.
13/ The $xPRISM staking rewards are generated from:
- 10% of the yield of bonded yASSETs (e.g. $yLUNA)
- 100% of the yield of unbonded yASSETs and cASSETs (e.g. $yLUNA and $cLUNA) that are being used in LPs
- 0.1% swap fee on DEX
- 0.3% swap fee on successful limit orders
- 10% of the yield of bonded yASSETs (e.g. $yLUNA)
- 100% of the yield of unbonded yASSETs and cASSETs (e.g. $yLUNA and $cLUNA) that are being used in LPs
- 0.1% swap fee on DEX
- 0.3% swap fee on successful limit orders
14/ As can be seen, all of these rewards represent fully organic protocol revenue. πΈ
Unlike many other protocols, staking rewards are therefore not based on unsustainable, inflationary token emissions which add immense sell-pressure.
This is a huge selling point for (x)PRISM!
Unlike many other protocols, staking rewards are therefore not based on unsustainable, inflationary token emissions which add immense sell-pressure.
This is a huge selling point for (x)PRISM!
15/ As $xPRISM is "auto-compounding" there's no need to manually claim these rewards.
Instead, staking rewards are seamlessly accruing behind the scenes, as the organic protocol revenue (see above) is being used to buy back PRISM and thus adds buying pressure.
Instead, staking rewards are seamlessly accruing behind the scenes, as the organic protocol revenue (see above) is being used to buy back PRISM and thus adds buying pressure.
16/ This auto-compounding feature is beneficial as it:
- boosts APY
- eliminates the need for manual actions
- is usually more tax efficient (dependent on your jurisdiction).
Due to its auto-compounding nature, the $PRISM/ $xPRISM ratio is always rising (like $UST/ $aUST).
- boosts APY
- eliminates the need for manual actions
- is usually more tax efficient (dependent on your jurisdiction).
Due to its auto-compounding nature, the $PRISM/ $xPRISM ratio is always rising (like $UST/ $aUST).
17/ And that would be all for $xPRISM, if the talented developers at @prism_protocol had not given us another massive incentive to buy $PRISM: AMPSβ‘
By "pledging" $xPRISM to an AMPS vault, AMPS are generated.
Note: While there's no lock-up, all AMPS are lost by unpledging.
By "pledging" $xPRISM to an AMPS vault, AMPS are generated.
Note: While there's no lock-up, all AMPS are lost by unpledging.
18/ AMPS allow users to boost their rewards from staking their $yLUNA in the incentivised PRISM Farm.
While exact AMPS APR can differ, we're seeing numbers ranging from 30 - 100 % π
Future use cases for AMPS have also been hinted at and might involve $pLUNA ππ€
While exact AMPS APR can differ, we're seeing numbers ranging from 30 - 100 % π
Future use cases for AMPS have also been hinted at and might involve $pLUNA ππ€
19/ Development of token priceπ
We'll just leave this here...
Important to note: The only coins in current circulation are those that have been bought at the PRISM launch event, meaning everyone's minimum cost basis is $0.33 (exception: dip buyers).
We'll just leave this here...
Important to note: The only coins in current circulation are those that have been bought at the PRISM launch event, meaning everyone's minimum cost basis is $0.33 (exception: dip buyers).
20/ Implications and summary π
We believe @prism_protocol has laid the necessary foundation with a strong protocol and use case. As such, it has positioned itself to be one of $LUNA's most prominent projects, which we are seeing with a TVL of > $300mm that is still rising.
We believe @prism_protocol has laid the necessary foundation with a strong protocol and use case. As such, it has positioned itself to be one of $LUNA's most prominent projects, which we are seeing with a TVL of > $300mm that is still rising.
21/ The tokenomics of $PRISM (and its staked brother-token $xPRISM) have been carefully created to allow for sustainable token growth.
Most importantly, $xPRISM is using organic and thus sustainable protocol revenue to buy back $PRISM. This income is correlated to $LUNA.
Most importantly, $xPRISM is using organic and thus sustainable protocol revenue to buy back $PRISM. This income is correlated to $LUNA.
22/ As such, if you're long on $LUNA, you're also long on $PRISM revenue. While increasing protocol revenue does not guarantee a token price increase, it is a very good start.
To sum it up: @pLUNADAO is long $PRISM. We hope this thread helps you to decide for yourself π
To sum it up: @pLUNADAO is long $PRISM. We hope this thread helps you to decide for yourself π
22/ If you enjoyed this thread: A retweet is highly appreciated β€οΈ
Follow us if you want to stay up-to-date on @prism_protocol and other top-tier $LUNA projects π
Follow us if you want to stay up-to-date on @prism_protocol and other top-tier $LUNA projects π
23/ Lastly: Want to find out more about the underlying protocol? π
Check out our guide for a full-overview of @prism_protocol and all of its features π₯
Check out our guide for a full-overview of @prism_protocol and all of its features π₯
https://twitter.com/pLUNADAO/status/1502575947240910850
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