SNOW Governance Token
SNOW Governance Token
We are excited to announce SNOW, the governance token for SnowSwap organizes and incentivizes the community around the protocol.
SNOW token contract address: 0xfe9a29ab92522d14fc65880d817214261d8479ae - View on Etherscan / View on Coingecko
Highlights
Low token supply; maximum 500,000 SNOW
Initial retroactive distribution to early adopters
Fair launch with no premine; 80% of tokens distributed to liquidity providers with 7% distributed retroactively to early LPs and users (4% pre-announcement, 3% post) and 1% for trading incentives
8% of tokens allocated to SnowSwap Foundation supporting the growth of the ecosystem by providing grants to value-adding forks, frontend integrations, and other contributors;
Incentivized team committed to the long-term vision and success of the project;
Smoother issuance curves to allow for gradual distribution and decentralization;
Phased liquidity mining program with incentives that evolve as the protocol grows
SNOW Token Value and Functions
As the governance token of SnowSwap, SNOW has the following core functions:
Via the DAO, to enable community-driven governance of the future development of SnowSwap, including what new pools are offered and the parameters that govern them.
To bootstrap liquidity for the SnowSwap’ ecosystem
Info / Exchanges
Token Allocation
500,000 SNOW tokens will be minted at genesis with the following allocation:
80% — to Liquidity providers including 7% released retrospectively to early LPs and users of SnowSwap
10% — to the Dev Fund (team) with a 3-year vesting schedule; 2% of the tokens will vest at launch to cover the prior development cost and provide several months of runway
8% — to the SnowSwap Foundation treasury to incentivize growth of the SnowSwap ecosystem. The tokens will be distributed based on governance proposals to incentivize various SnowSwap ecosystem growth initiatives:
to pay for a security audit;
partner programs for frontends integrating SnowSwap
support of the value-adding forks,
contributor grants and various community initiatives
2% — made available to the $BASED community via Moonbase. A Rover will be deployed for SNOW and 10,000 SNOW will be sent to the Rover on a 1-year continuous linear vesting schedule.
Token Issuance Schedule
SNOW is distributed over a period of 3 years with continuous vesting according to the following release schedule:
Liquidity Mining
SnowSwap has multiple liquidity mining programs in several phases, each with a set of incentives designed to be optimal for the protocol at that stage.
50% of the total supply will be distributed to LPs during the first year in the following phases:
Phase 1: Retroactive rewards
7% of all tokens was allocated to early users and LPs and was claimable over two airdrops in October 2020.
Phase 2: [Liquidity Mining] Initial SNOW distribution program for LPs — 30% of all tokens is allocated to LPs
SNOW tokens are distributed to liquidity providers for staking their SnowSwap LP tokens with a distribution curve weighted in favor of early LPs that provide liquidity when total pool size is low. The rewards are distributed in proportion to the amount of liquidity supplied, multiplied by a “rewards coefficient” that increases with time and resets to 1 when the liquidity is withdrawn. There are no fixed-length lockup commitments.
We also incentivize Uniswap pools for SNOW to create liquid markets. The process of earning SNOW for supplying Uniswap liquidity is as follows:
SnowSwap LPs should supply their LP tokens or SNOW to the incentivized Uniswap pool (SNOW/ETH)
To earn SNOW, users will stake their Uniswap LP tokens in Rudoph's Pool on the SnowSwap website.
Phase 3: Staking SNOW — 13% of tokens allocated to LPs
SNOW holders can earn additional rewards in SNOW for locking their SNOW tokens in Frosty's Pool. Tokens staked in this pool will still be eligible for governance voting. Phase 3 is designed to eventually reward community participation.
The remaining 30% of the SNOW tokens allocated to LPs will be continuously vested in the community treasury and allocated during the following 2 years to additional liquidity mining programs which will be decided by governance. In other words, these tokens will be distributed to liquidity providers but the mechanics through which this happens will be left up to governance.
Governance and Fee Distribution
The only functionality offered by SNOW is the ability to vote on governance proposals to modify or add to the SnowSwap protocol.
SnowSwap Foundation
We believe in playing positive-sum games and encouraging innovation. Tesla’s electric cars are open-source to help make the world a better place. Code should be as well. By having code that is made to be forked, we create network value and vampires are less likely to be successful.
Offensive Forkability
The SnowSwap Foundation will invest in teams looking to add value to the ecosystem. Examples are: Protocol design-level experiments, and customization and/or localization for different market segments.
Possible grant recipients:
Security Audits (via SnowSwap partner);
Initial capital for development costs to provide runway while allowing for a fair launch;
Paid forward grants;
A fork must have some value-added integration with SnowSwap
Special Thanks
We would like to thank the following early community members for their contributions to the SnowSwap ecosystem and for their advice.
-The yEarn Community -Hansolar -Zai -Berkeley Blockchain Xcelerator -Spencer Noon -Ian Lee -Matt Kaye -Sam Harrison -Nick Sullivan -JakeFromStateFarm -Ethan Kravitz -Mikobits -Shamil Magdiyev -Jared Madfes -Justin Yashoufar -The Open Web Collective -Curve Finance team (thanks for the publicity ;)) -And everyone else for your contributions
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