The Argennon token (ARG) is an ERC20 token intended to represent an investor's share in the Argennon project. The functionality of the ARG token is as follows:
- After the launch of the Argennon blockchain the ARG token will be convertible in 1:1 ratio to the main currency of the Argennon blockchain.
- The ARG ERC20 contract is a profit distributor. That means when an amount of an ERC20 token which is registered as a profit source in the contract, is sent to the contract address, that amount will be distributed between all ARG holders, proportional to their ARG balance.
- Holders of the ARG token are eligible to vote in the Argennon Decentralized Autonomous Governance system (ADAGs). The
ADAGs /eɪ-dagz/ is a smart contract which is able to perform governance actions. Actions such as starting a new
crowdfunding campaign, minting new ARG tokens and deploying a new governance system.
- In order to vote, a user needs to lock his ARG tokens for at least 6 months. During this period he will not be able to transfer his tokens.
- Any proposal that gets more than 60% (3/5) of the total ARG supply votes will be accepted by the ADAGs.
Several crowdfunding campaigns may be held before the launch of the Argennon blockchain, all of them will follow these rules:
- Every crowdfunding is conducted using a smart contract: the CF contract, and it has its own token: the ICO token. Users may buy ICO tokens from the CF contract. A user can burn his ICO tokens and convert them to the ARG token in 1:1 ratio using the CF contract at any time.
- The ICO token is redeemable. This means that anyone can redeem his ICO tokens by using the CF contract and get a
refund. The redemption price depends on the time since the start of the crowdfunding and the amount of funds the
crowdfunding has raised so far:
- If the amount of raised funds has not yet reached the threshold defined in the CF contract, a user may redeem at 100% price.
- If the amount of raised funds has reached the threshold, then the redemption price will drop to the price defined in the CF contract, which is determined by the ADAGs and usually is 90%. It is guaranteed that a user can redeem at that price for a configured time interval, which again is determined by the ADAGs and usually is one year. After that time interval, the ICO token will not be redeemable, and user should only convert them to the ARG token.
- When a crowdfunding is done, the earnings of the crowdfunding will automatically be sent to the ARG ERC20 contract address and hence, it will be distributed between ARG holders.
The final total supply of the Argennon currency will be 100 billion. The ARG ERC20 token on the other hand, will have a 50 billion cap. Consequently, 50 billion Argennons will be minted only after the launch of the Argennon blockchain. These Argennons will be mainly used as staking rewards.
The minting of the ARG ERC20 token will follow these rules:
- 10 billion: founder's share.
- 1 billion: founder's initial reserve which will be granted to early contributors. All these grants are documented here.
- 1 billion: first crowdfunding which will be sold for 50,000$.
The minting of the remaining ARG ERC20 tokens will be decided by the ADAGs, but it has to be limited by the maximum supply defined by the ARG ERC20 contract. This maximum allowed supply is a function of time. For the first year a maximum supply of 20 billion is allowed, and after that, the maximum allowed supply increases 5 billion per year for 6 years until it reaches the 50 billion cap. It should be noted that this is a hard limit on the maximum supply of the ARG ERC20 token and the actual supply may be lower than this amount.
After the launch of the Argennon blockchain, all unminted ARG ERC20 tokens will be considered as the reserve of the ADAGs counterpart on the Argennon blockchain.