NDP Token Economic Model

About NnsDAO

NnsDAO is the boundaryless autonomous organization, it is based on Dfinity to build a virtual reputation system belonging to the Web 3.0 era, and through different DAOs (specific projects) to build and improve the ecology, different users explore and find their own value by joining different DAOn (unions), DAOs (specific projects) to make collaboration and creation easier.

Representative products

icpscan

ictexas

universe

icptree

icpdrops

icpodcast

About NDP Token

NnsDAO Protocol (hereinafter referred to as NDP) is the governance token of NnsDAO Protocol.

According to Token's classification, a governance token is a Token with governance and dividend interests. The NDP Token is a utility token that will be released through contribution, and the governance of the protocol is ultimately shared between the ecological reputation system and the Token. Specifically, the NDP Token provides a process specification for DAOs where the protocol can be used for functions such as proposals, governance, and transactions with NDP.

Reputation is an irreplaceable token (NFT) that refers to the influence that a virtual entity has in the IC ecosystem. The virtual reputation system enables functions such as lending, trading, collateral, and governance in different scenarios, and each reputation corresponds to NFT like in the process of generation and is used to judge the value of an entity in the virtual world.

Token Distribution

100 million NDP tokens were minted at Genesis, and the tokens were mainly divided among contributors, sponsors, first sales, teams, and moon landing programs for the following distributions:

Staking and voting

Based on the models of DAOs and DAOn, NnsDAO proposes a reputation-based governance system that allows all NDP holders and contributors to participate in governance, vote, and receive some benefits.

DAO plan based on the staking model, for Token staking, NnsDAO gives the following way, in the whole NnsDAO ecology, if there is a continuous moon landing plan born, there will be a fixed 10% proportion distributed to the DAO fund and returned to the staking users, that is, the current contribution to the ecology and staking will continue to get DAO fund feedback and can get rare benefits such as Token and NFTs.

Token holders will be able to staking their NDP tokens and earn reputation staking to gain voting rights. Voting rights are linearly proportional to the number of tokens stakingd and the value of one's reputation. Tokens and reputations that are locked due to vesting are considered locked tokens and reputations until they are removed and reallocated by the owner. Therefore, tokens locked for >= 6 months and with a certain staking of personal reputation will generate voting rights. Reputation Governance (RG,Reputation Governance) is defined as follows:

RG = Staked NDP with a lockup period >= 6 Month & VR(Virtual Reputation) > 10

At the beginning of the system, in order to attract the active participation of the early users, we held the Patrick Sphere Ecology Project for 100 days to create a Genesis planet through different groups and help the participating users to build the community together through the form of incentives. At the beginning of the Patrick program, we gave 7% of the total contribution award to the early builders, participants, and the final outcome was determined by milestones and products and awarded to all participating users after the launch of NnsDAO Genesis.

We expect the remaining 50% to be distributed in equal monthly proportions at the end of the Patrick Eco Plan, which is initially expected to be earned by contributors through DAOs to earn within 3 years, while for users who staking and hold reputation, we give rewards in the form of NFTs and DAO fund rewards, which will be continuously bigger, just like a snowball that can have continuous gains.

NDP Fees and Deflation

To counteract inflation, NDP uses various deflationary models such as accelerated DAOs, planet auctions, staking for DAO fund grants, etc., and uses the proceeds to support new projects to grow the DAO fund. A fixed percentage of 10% of the proceeds from auctions of planets and NFTs will go to the DAO Fund in perpetuity, and a vote will determine how the DAO Fund is managed.

Based on the NnsDAO protocol, if the reputation system is gradually improved, the NnsDAO protocol governance will gradually transition to a weak Token governance model, and any user who participates in the contribution will eventually receive voting rights and proposal rights.