A tool for illustrating Indigo’s tokenomics.
The Indigo Protocol is managed by the Indigo DAO. The Indigo DAO is managed by DAO Members and the Indigo Foundation administers the votes of the DAO Members. To become a DAO Member, one must stake Indigo’s utility token (INDY) within the protocol.
INDY is a Cardano native token with a fixed supply of 35M. As an owner of INDY, you can stake and unlock two benefits:
- The right to create and vote on governance proposals
- Receiving a proportional share of Indigo Protocol’s fees
| Use | % | # |
|---|---|---|
| Airdrop | 1 | 350,000 |
| Team | 25 | 8,750,000 |
| DAO Controlled Tokens | - | - |
| DAO Treasury | 13 | 4,550,000 |
| Governance Participation | 5 | 1,750,000 |
| iAsset Liquidity Staking | 15 | 5,250,000 |
| Protocol Owned Liquidity | 1 | 350,000 |
| Stability Pool Rewards | 40 | 14,000,000 |
Two airdrops will be conducted for Indigo:
- Discord Airdrop
- Staking Airdrop
Both airdrops are allocated 175,000 INDY each. For the first airdrop, INDY is to be distributed to a pre-selected list of Indigo Discord members. For the second airdrop, INDY is to be distributed to delegators of pools part of the Cardano Single Pool Alliance.
Upon deployment of Indigo mainnet, 875,000 INDY was distributed to an unlocked wallet owned by Indigo Laboratories, Inc. Another 7,875,000 INDY was distributed to a wallet owned by Indigo Laboratories, Inc. subject to a per-month vesting schedule.
The DAO Treasury holds funds within a smart contract that can be accessed upon a protocol upgrade approved by DAO Members. INDY held within the Treasury is locked and prohibited from being part of circulating supply until Governance Proposals authorize funds to be unlocked. 5,425,000 is distributed to the Treasury upon launch of Indigo mainnet.
INDY is unlocked every epoch (beginning three epochs after launch) and dis- tributed to DAO Members who participate in the decentralized governance of the Indigo DAO. 1,750,000 is distributed over a 5-year period shortly following the launch of Indigo mainnet.
INDY is unlocked every epoch (beginning six epochs after launch) and distributed to users who participate in providing iAsset liquidity. 5,250,000 is distributed over a 5-year period shortly following the launch of Indigo mainnet.
The Indigo DAO holds DEX Liquidity Provider (LP) tokens in the on-chain DAO Treasury. These LP tokens will 350,000 INDY worth of liquidity for the token, minus any fees charged by DEXs.
INDY is unlocked every epoch (beginning two epochs after launch) and dis- tributed to users who participate in providing staking iAssets in Indigo’s Stability Pools. 14,000,000 is distributed over a 5-year period shortly following the launch of Indigo mainnet.
The Token Generation Event (TGE) occurs on the day of mainnet deployment. After INDY is minted, it is to be allocated as follows:
- 350,000 INDY to two or three DEXs approved by the Indigo community
- 350,000 INDY to participants within the Indigo community
- 21,000,000 INDY to one or more wallets (administrated by Indigo Laboratories, Inc. at the direction of the Indigo Foundation on behalf of the Indigo DAO) to be used for the sole purpose of community rewards distributions (Stability Pools, Liquidity, and Governance)
- 4,550,000 INDY to the DAO Treasury Reserve
- 8,750,000 INDY will be allocated to Indigo Laboratories, Inc. for past and expected future building, administering, and further developing the protocol, with 7,875,000 being distributed to team members under a two-year monthly vesting schedule
Periodically, INDY tokens are unlocked from their vesting schedule and released into the circulating supply. A full table of the INDY distribution schedule can be seen in tokenomics.csv.
The indy-tokenomics (indy) tool is a CLI app written in Python3. It’s
installable via pip. It’s recommended to install inside a virtual
environment. Create a virtual environment using venv:
python3 -m venv venv
Activate the virtual environment. In Linux:
source venv/bin/activate
In Windows:
.\venv\Scripts\activate
After the virtual environment is activated, install the pip:
pip install -e .
After installation, the tool will be available via the indy command.
Running the --help option will show all the available commands for the
tool.
$ indy --help
Usage: indy [OPTIONS] COMMAND [ARGS]...
An interface for illustrating Indigo’s tokenomics.
Options:
--help Show this message and exit.
Indigo is completely decentralized and controlled by owners of INDY. Any owner of INDY can submit Governance Proposals that can then be voted on by DAO Members. To determine if a Governance Proposal passes or fails, Indigo uses Adaptive Quorum Biasing (AQB). Quorum threshold adjusts dynamically based on how much participation a Proposal receives. The less people who vote, the higher the proportion of “yes” votes required for a Proposal to be passed. If there’s a large amount of participation, then the threshold is reduced. The threshold is always at least 50%, meaning that the majority must vote “yes” for a Proposal to pass.
indy offers a aqb vy command to show how many “yes” votes are
required:
$ indy vy --help
Usage: indy vy [OPTIONS] VN E
Calculates how many yes votes are required for a proposal to pass AQB.
indy vy takes two variables: the number of current “no” votes, and the
electorate. The electorate is the current circulating supply of INDY,
which can be calculated using the indy total command.
To determine if a Governance Proposal passed, the aqb proposal command
can be run:
$ indy aqb proposal --help
Usage: indy aqb proposal [OPTIONS] VY VN E
Evaluates whether a proposal has passed AQB.
indy aqb proposal takes three variables: the number of “yes” votes,
the number of “no” votes and the electorate, also known as the INDY
circulating supply.
To find out what the current circulating supply is, run indy total.
Alternatively, to see what the circulating supply would be on a
particular date, pass in a date (e.g. 2022-12-03) via the --date
option.
This project makes use of Python tools to enforce coding standards and validate accuracy. To install the Python development tools, run:
pip install -r requirements-dev.txt
This project also makes use of git pre-commit hooks. To set up the
hooks, ensure you have git and pre-commit installed then run:
pre-commit install
You can verify if the git hook is working properly by running:
pre-commit run --all-files
Before code is committed to this repository it must pass automated checks for code conformity. The git hook will automatically refactor code to ensure compliance.
Tests run upon creation of GitHub pull requests and can be run locally
using pytest:
pytest .