🪙Overview
SAUCE Token
SAUCE is the native token of the SaucerSwap Protocol, created and managed through the Hedera Token Service (HTS).
Token ID: 0.0.731861
EVM Address: 0x00000000000000000000000000000000000b2ad5
SAUCE is a transferable representation of designated utility functions outlined in the SaucerSwap protocol's code. These functions include governance, liquidity, and staking.
Governance: SAUCE will serve as voting power in the SaucerSwap DAO, enabling token holders to create and vote on proposals affecting the ecosystem. These proposals encompass protocol upgrades, parameter adjustments, incentive alignment, and other significant decisions. For more information, see Governance.
Liquidity: The Masterchef smart contract, serving as both the treasury account and supply key for SAUCE, governs its minting and distribution. SAUCE minted by this contract are used to incentivize liquidity provision on SaucerSwap V1 (yield farm) and SaucerSwap V2 (LARI). For more information, see Yield Farm and LARI.
Staking: SAUCE tokens allow users to participate in staking activities, offering them a share of V1 and V2 trading fees, HBAR native staking rewards, and emissions through an automated buyback mechanism. For more information, see Single-Sided Staking.
SAUCE Tokenomics
SAUCE has a maximum supply of 1 billion tokens. At genesis, 500 million SAUCE tokens were minted. Of these, 300 million were locked in non-upgradable vesting contracts owned by the SaucerSwap DAO, while 200 million entered circulation. The Masterchef contract is responsible for minting and distributing the remaining 500 million SAUCE tokens in accordance with a predefined release schedule.
Initial Supply
A total of 200 million SAUCE tokens were initially released. Tokens in the Liquidity, Marketing, and Operations categories fell under DAO ownership, while those in the Community category were distributed to 729 eligible community members.
Liquidity: 2% of the max supply (20 million SAUCE) were converted to SAUCE/HBAR LP tokens, which were subsequently locked for a one-year period.
Community: 14% of the max supply (140 million SAUCE) was distributed to community members holding Planck Epoch Collectible (PEC) NFTs based on the type and number of NFTs in their account.
1 Gravity PEC → 3,000 SAUCE
1 Weak Nuclear PEC → 14,000 SAUCE
1 Strong Nuclear PEC → 30,000 SAUCE
1 Electromagnetic PEC → 5,000 SAUCE
Marketing: 2% of the max supply (20 million SAUCE) were sent to a DAO-controlled marketing multi-sig.
Operations: 2% of the max supply (20 million SAUCE) were sent to a DAO-controlled operations multi-sig.
Vesting Allocations
At genesis, the DAO deployed a set of non-upgradeable vesting contracts where 300 million SAUCE was locked. Over a span of 3 years starting from genesis, these tokens undergo a linear vesting process.
Core Development: 24% of max supply (240 million SAUCE) vested from 0.0.1059453 to SaucerSwap Labs.
Marketing: 2% of max supply (20 million SAUCE) vested from 0.0.1059333 to a DAO-controlled marketing multi-sig.
Operations: 2% of max supply (20 million SAUCE) vested from 0.0.1059313 to a DAO-controlled operations multi-sig.
Advisor: 2% of max supply (20 million SAUCE) vested from 0.0.1059259 to a DAO-controlled advisor multi-sig.
Masterchef Emissions
Central to the SaucerSwap protocol, the Masterchef smart contract acts as both the treasury account and the supply key for SAUCE, overseeing the minting and distribution of the remaining 500 million SAUCE.
Note that, on August 8, 2023, the SaucerSwap DAO approved the Tokenomics V2 Proposal. This section will provide details about the updated tokenomics. For historical reference, you can access the archived Old Tokenomics documentation.
Distribution Breakdown
Genesis to V2 Launch (Q3 2022 - Q4 2023):
Yield Farm: 90.91%
Devcut: 9.09% (with 70% to the DAO and 30% allocated for single-sided staking rewards)
Emission Rate: 317.10 SAUCE per minute, giving a 3-year emission runway from genesis.
V2 Launch Onwards (Q4 2023 - Q4 2028):
Yield Farm: 47.16%
DAO: 43.75% (with 50% retained by the operations multi-sig and 50% channeled to LARI rewards)
Devcut: 9.09% (with 70% to the DAO and 30% reserved for single-sided staking rewards)
Emission Rate: 126.84 SAUCE per minute, extending the emission runway to 6 years from genesis and marking a 60% reduction in inflation.
Summary
Below is a high-level summary of the updated tokenomics model, which takes into account two key assumptions: (i) the transition to V2 is set for November 15, 2023, and (ii) after the initial bootstrapping phase (epochs 1-4), half of the DAO's share of Masterchef emissions will be directed to LARI.
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