#FarmRevolution: A hypothetical scenario where no TIME holders remain
Yes, you did read the title of this article correctly. And we’re probably the first yield farm or DeFi project to write an article like this. That’s how confident we are about the longevity of our protocol.
If you’re a seasoned yield farmer, you should know that price dumps happen all the time. Nonetheless, FUD still happens and people still ask, “why dump”.
Let’s take this to the extreme today, shall we? This is what happens in the hypothetical scenario where all TIME holders exit and TIME price dumps to $0 (or will it?).
But before we begin, you really should read about our Buyback-and-Make tokenomics if you haven’t. If you continue reading this article, we’re assuming you’re already aware of what’s it about 😄
Let’s start with tokenomics
Time Token (TIME)
Once we reach max supply and assuming all holders exit, we should expect:
- Total supply = 86,400
- Emission Rate = 0 TIME / block
- Market cap = $43,200
- TIME Price = $0.50
The market cap would amount to what the devs have invested in TIME since the beginning of our journey. This means that TIME would never dump to $0, how awesome is that!
But this also means that devs will hold all of TIME and would be the sole liquidity provider that remains. Assuming that us devs are extremely rational creatures, it wouldn’t make sense for us to exit because then it would really dump to $0.
This leaves us with a couple of options:
- Simply hold on to TIME and continue using the ATMs to build out the market cap
- Reboot the project
(1) Hold on to TIME and continue building out its market cap
We wanted to build a personal bank, and we’ve built our own. Safe from potential rugs or even FUD from a hypothetical community that hypothetically dumps us to the moon.
There’s no way a dev would rug themselves, that’s ridiculous. That’s like transferring funds from one pocket to another, same pants dude.
We’re still earning an income from other sources. This means we would have to chuck our funds somewhere with a decent APR — why not chuck them into our ATM vaults and have them earn sweet APYs on some dev-audited and approved pools?
We’d probably just transfer our monthly income sans expenditure into the ATM vaults. In a couple of months, TIME will see an increase in market cap due to our buyback-and-make model. On top of that, we’ll still be happily auto-compounding our staked LPs in the ATM.
TIME price after 1 year
- 1 liquidity provider of 86,400 TIME
- Monthly savings crediting of $5,000
- APY min ~300%
- Cost to run project = Practically $0 because we can switch to free options for RPC hosting and stuff, no need for advertisements at all
- Performance Fees: 4.5% to buyback TIME, 0.5% to feeAddress
- Total increase in TIME market cap = $5,400
- TIME price = $0.5625 (+12.5%)
We’ll continue building up the market cap year on year until we reach a decent threshold for it to run itself, then we’ll sell off some for living expenses.
TIME is a gift that never stops giving. You’re welcome.
(2) Reboot the project
Oh yes, our buyback-and-make function is perfectly capable of doing this! It was built to last with circular tokenomics after all.
Most farms would just give up and move on, but once again, let’s assume that the devs are purely rational creatures who’ll make the most rational decisions, wouldn’t option (2) work out just as well?
Many projects that have failed got relaunched as community projects (ahem, TitanDAO and Polywhale, just to name a few). There’s a lot of trust to be rebuilt, and definitely a lot more work to re-work the smart contracts and UI.
But hey, look on the bright side, there’s nothing that us devs really need to rebuild because we chose to make things circular.
Here’s what we’ve built thus far:
- MasterChef distributes TIME rewards to stakers
- Buyback-and-make ATM Vaults buy back TIME and does its auto-compounding magic
- Treasury stores TIME that’s bought back
Doesn’t seem like all is lost, does it? Sure, we’ve spent marketing dollars, but it won’t kill to redo #domination all over again to let everyone know that we’ve been rebooted (with even better tokenomics!).
Here’s what we think we’ll do IF we reboot:
- Total supply = 86,400
- Locked in Treasury = 72,000
- Resupplied to MasterChef = 14,400
- Emission Rate = 0.01 (5x reduction from initial)
- Market cap = $43,200
- Expected TIME Price = $3.00 (due to locked supply in Treasury)
- Mooned TIME Price = ???
This will give us about ~33 days of runway to build out the next set of features (e.g. lending, collateralization, etc).
WTF, is this inception?
We designed a system that can be repeated over and over again, without having to restart as “just another farm” that you’ll think twice before ape-ing into.
Farming is forever, and as devs, we definitely created something that will never die unless we decide to kill it. But remember, we’re rational creatures, and there’s always option (1) to take.
TIME will never dump to $0, because we’re here to keep it all for ourselves if that happens.
Okay but in all honesty, we’re doomsday preppers. What we’re really trying to say is this:
People may damp after we reduce emissions (despite it being a very pragmatic decision for the success of the project), but hey, Timeleap is still here to stay.
We hope you had fun reading this article 😂