The Abacus token will carry the symbol ABC.
There will be an emission schedule set to approach 2B ABC supply in the next 3 years (y1 700m, y2 350m, y3 150m). These yearly emission rates, will be split into epoch distributions. Once the supply hits 2B there will be a terminal inflation rate of 2% per year.
The total supply of 2b is distributed as such:
When an epoch concludes, there is a set amount of tokens that’ll be distributed in that epoch. Therefore, we’ve introduced epoch distribution credits (abbreviated as EDC) which represent your proportional claim on an epochs ABC emission. For example, imagine that an epoch generates 100m EDC, Alice owns 10m of that epochs EDC generated, and 50m ABC are emitted. Alice will be able to claim 5m ABC (10% of total ABC emitted) from that epochs emission because she is responsible for generating 10% of the total EDC in that epoch. So, how does one earn EDC? Appraise!
There are two ways to earn EDC:
(1) Participate in Abacus Crowds sessions. At the conclusion of a Crowds session, correct appraisers (i.e. properly valued the NFT) receive a reward, which is automatically sent to the Abacus treasury in exchange for epoch distribution credits at a 1:1 ratio (denominated in wei). Therefore, if your reward size is 2 ETH in a Crowds session that reward will be sent to the Abacus treasury and 2 ETH worth of EDC will be credited to you (increasing your share of that epochs ABC emission). Furthermore, any winner will have the opportunity to exchange their stake for EDC as well.
(2) Abacus Spot pools. When a trader buys into a Spot pool they must choose an amount of time to lock their purchased pool tokens. Based on the amount of time the trader locks their tokens for, they receive an increasingly discounted cost basis for EDC and therefore ABC. For example, imagine Alice and Bob purchase 10 ETH worth of pool tokens but Alice locks hers for 6 weeks and Bob locks his for 2 weeks. At the end of his 2 week lock up, Bob will be able to purchase up to 20 EDC for 10 ETH and at the end of her 6 week lock up Alice will be able to purchase up to 60 EDC for 10 ETH. Therefore, if the epoch concludes and emits 100 ABC, Alice can claim 75 ABC while Bob can only claim 25 ABC even though they both spent 10 ETH (Alice paid 0.133 ETH/ABC and Bob paid 0.5 ETH/ABC). In addition to trader rewards, when a Spot pool closes, any ETH earned can be sent to the Abacus treasury in exchange for EDC at a 1:1 ratio.
So… ABC? Wat do?
ABC can be staked in exchange for veABC (dependent on length of lock up) which will represent governance powers over Abacus. Holders receive 0.75% of all revenue generated from EDC purchases. Furthermore, they have the power to control the epoch distribution gauge.
The epoch distribution gauge controls the premium size that the protocol offers to different NFT collections. For example, if Punks hold 20% of gauge vote, anyone who earns EDC in a Punk based Spot pool receives epoch distribution credits equal to 120% of EDC purchase (i.e. if purchasing 60 EDC they’d receive 72 EDC for the same price). Since traders will look for the highest offered EV in a pool this gauge acts as a powerful incentive to draw traders into NFTs of a certain collection. This cascades into higher levels of liquidity flowing and higher yields for the NFT owner that created the Spot pool (due to higher activity levels), making gauge control a powerful tool.
In addition to specific allocation powers, collection agnostic veABC holders can auto allocate their tokens. Every epoch, interested parties can bribe auto allocators as a whole for control over allocation usage. For example, imagine 20% of the veABC supply is auto allocated, 1000 ETH of bribes comes in, and 100 ETH of those bribes are for the Punks collection. This means that on top of the explicit allocation, Punks will have an added 2% increase. Meanwhile, auto allocators will split any bribes paid in each epoch.
Due to the use of FIFO in Spot pool closures, early positions are extremely valuable. Therefore, there will be a short period of time at the opening of pools in which a user can pay ABC to the treasury in exchange for early access to a Spot pool.
There will be a public pre-sale of 50m ABC (2.5% of target supply) that will be capped at a $100m FDV. If the pre-sale increases beyond this FDV target all buyers will receive a pro rata portion of the tokens purchased. Excess amounts paid will be automatically be used to purchase EDC at a 1:1 ratio to be applied in Epoch 1.
Abacus is an NFT valuation protocol set out to unlock highly efficient NFT finance. We offer two forms of valuation:
(1) Crowds: crowd sourced NFT valuations (read more here)
(2) Spot: creates liquid markets around NFTs to provide 0 risk NFT valuations for lending. This unlocks 2x any currently (or speculatively) offered LTV, guaranteed liquidation value so 0 risk for lenders, borrower earns yield on NFT while in Spot (allows for self repaying loans), each NFT valued on its own at full value.
We are always open to new projects that are interested in joining the Abacus ecosystem, so don’t hesitate to reach out!
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