SoftDAO Token Distribution ($SOFT)

tokendistributionwide

The SoftDAO Whitepaper states “the advent of blockchain technology is a human advancement that rivals the printing press and double-entry accounting in its magnitude.”

One benefit to this advance is that Web3 communities can now organize in a manner that’s global, decentralized, transparent, and immutable. Tokenized assets — like the $SOFT token — can thus represent a holder’s position in a broader community of shared incentives, values, and common goals.

In short, the SOFT token can become an user’s immutable certificate of belonging, alignment, and place in the SoftDAO community. Therefore it’s critically important that the distribution of $SOFT is in accordance with:

  1. The SoftDAO’s values
  2. The SoftDAO’s mission
  3. Effective, decentralized, and sustainable governance

We think it would be in the best interest of the DAO to approve the following distribution plans for the SOFT token:

SoftDAO Token Allocation

Categories

SoftDAO Treasury (35%) - grants, partnerships, advisors, service providers, bounties, referrals

Operational Costs (10%:) - incentivizes for ongoing operations of the SoftDAO

Early Developer Bounties (10%:) - recognizes past contributions and position within SoftDAO community, incentivizes current as well as future development

Early Supporters (10%:) - recognizes past contributions, increases likelihood of knowledgeable stakeholders in governance, and incentivizes continued strategic support

Future Developer Bounties (8%:) - incentivizes and reserves governance rights for future developers.

Friends & Family Round (7%:) - recognizes past contributions, solidifies strong community of supporters, increases SoftDAO sustainability, and incentivizes ongoing support

Community Round (10%:) - decentralizes community through a broad token sale, ensures that many individuals within the community are participating in governance and recognized community members from genesis

Future Rounds (8%:) - ensures access to future capital, reserves tokens for future community members or over-subscribed initial rounds

SoftDrop (2%:) - further aligns Tokensoft and SoftDAO community and decentralizes the token

Vesting & Lockups

  1. SoftDAO Treasury: Use of Treasury funds will be subject to SoftDAO governance and may include grants, partnerships, advisors, service providers, bounties, referrals, and funding. Tokens in the SoftDAO Treasury will not be subject to vesting or lockups.

  2. Friends & Family Round, Early Supporters, and Operational Costs: Tokens in these categories would be subject to either time-based or price-based lockups or vesting schedules. For tokens on a time-based vesting schedule, tokens are subject to a four-year vesting schedule with a one-year cliff (25% or 12/48 of tokens vest immediately at one year, 1/48 of tokens vest in tranches on monthly anniversary thereafter). For tokens subject to a price-based vesting schedule, tokens are scheduled to unlock in 25% increments as the bitcoin price rises above $50,000, $60,000, $70,000, and $80,000. Unlocked tokens may be claimed in these increments so long as the bitcoin price remains above the respective increment’s strike price. Tokens in the vesting contracts will still provide beneficiaries with voting power during the lockup and vesting periods.

  3. SoftDrop: Tokens will be subject to an initial 3-month lockup period with a two year, continuous vesting schedule after that. Tokens in the vesting contract will still provide beneficiaries with voting power during the lockup and vesting periods.

  4. Community Round: 3-month lockup followed by a two year, continuous vesting schedule. Tokens in the vesting contract will still provide beneficiaries with voting power during the lockup and vesting periods.

Other Details

  • Max Allocations: Round allocations are maximum allocations, actual tokens sold in each round may be less than the allocated amounts.
  • Unsold or Unclaimed tokens: Unsold or unclaimed tokens in any round may be made available in subsequent rounds or returned to the Treasury.
  • SoftDrop: Subject to governance; these tokens will be made available — free of charge — for legacy Tokensoft community members and incentivized testnet participants to claim (through rebasing or a similar mechanism).
  • Stewardship: as launch partner and Compliance Provider, Tokensoft will steward allocations toward Operational Costs, Early Developer Bounties, Future Developer Bounties, Early Supporters, and the SoftDrop. The allocations across these categories are subject to discretionary changes as needed.

We welcome and look forward to feedback from the Community ahead of the vote next week.

Vote: Monday October 24th, 2022 - 9pm UTC

334 Likes

It seems to me that the tokens that are allocated to the community need more, otherwise it will not be friendly to the community

43 Likes

Looks pretty good to me as long as the requirements for Early supporters and softdrop are fair. I think anyone who used tokensoft in the past for a tokensale should be automatically eligible.

21 Likes

Looks pretty good but can’t really understand what us OG testers will get? Early supporters part or…?

17 Likes

Hope marketing spendings will be a good part of DAO Treasury ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀

11 Likes

I think the amount allocated to the community is appropriate, maybe a small arrangement can be made, but even if it is not done, I think there is no problem. congratulations

10 Likes

I am not a big expert in the field of tokenomics. So I do not pretend to discuss the smallest elements of the system, specialists should do this. So I will only express my humble opinion about the whole system.

The values of the community are respected :handshake: :sunny: The presented tokenomics looks consistent with the principles of effective decentralized management! :heart_on_fire: All community members will be rewarded with tokens, the opportunity to participate in the management of the DAO! :fire: :fire: :fire: And that’s great! Adequate vesting periods are in the interest of the community and will find public understanding :handshake:

I am also sure that the large stock of the Treasury will allow us to adjust many nuances, as necessary :100: In particular, we will be able to consider the issue of increasing awards to early participants and testers :wink: So I don’t see any reason for serious doubts at this stage :sunglasses:

As for me, all this is worth celebrating! :grin:

23 Likes

Quite fair and accessible. And most importantly, it will allow you not to roll the token to the floor at the start.

6 Likes

I think the amount allocated to the community is appropriate, maybe a small arrangement can be made, but even if it is not done, I think there is no problem. congratulations

10 Likes

Having studied this infographic, I can say that all is well, and no one is deprived, an excellent distribution of percentages

7 Likes

Community tokensale … after 3 months of lockup what is the vesting method , because 2 year cliff is really is confusing to me

5 Likes

I’m not good at tokenomic but thisLooks good to me, hope it will turn out good
Looking forward to see the vote result :slightly_smiling_face:

5 Likes

the token allocation is pretty good. it would be nice for the allocation of early testers for rounds 1 - 5 to be enlarged to attract outsiders to join the community

5 Likes

Nick, hi! I am not an expert in tokenomics, but my humble opinion is that everything looks quite loyal to the community and the team as a whole. I am glad that I am a small, but still part of Tokensoft!

7 Likes

The token distribution is on the right track but LBP, how will it be achieved to sustain token value.

3 Likes

My slight addition- Soft Dao community token owners lose voting rights if they sell more than 25 percent of tokens within a year…And so a very well put together tokenomics plan.
Igor693#6211

5 Likes

I’m not good at token but thisLooks good to me, hope it will turn out good
Looking forward to see the vote result​:pleading_face::muscle:

5 Likes

SoftDrop (2%: ) Will this be an airdrop to OG?
The BTC price based vesting schedule is very interesting.
We will continue to monitor this closely.

6 Likes

Yes, I would like to see LBP before start.

I also agree with the tokenomy presented. I wrote TT about this proposal for distribution of the $SOFT token - to see a larger discussion

24 Likes

Tokenomics isn’t looking bad. But if it have to be community friendly then it should be more available for community.
Let’s see how it will looks as the time comes.

7 Likes