Tokenomic Features

Tokenomic Features of the Model

Extended 6-Year Distribution

The duration of HELIX emissions was elongated to 6 years from an original 4 years in order to dilute the per-day flow of emissions entering the market over time.

This was implemented in tandem with other changes designed to act on the supply-side of HELIX with the goal being to work towards optimally reducing supply pressure.

At a point over the 6-year period, a process of analyzing the state of the project and of the wider DeFi market will take place and based upon decisions made by the team with input from the community via governance mechanisms, a solution for the form that reward mechanisms take after the 6 years will be implemented.

Initial Circulating Supply vs. Daily Inflation

As a part of the tokenomic assessment that took place, it was ascertained that the initial ratio between circulating supply and daily inflation was non-optimal and would potentially have a negative impact on the outcomes of the model.

Following this realization, several measures were put in place to reduce this ratio including the expansion of the distribution timeframe as mentioned, as well as by increasing the day zero circulating supply in several ways. Primarily this was achieved by increasing the allocation for the IDO by more than 200% which had a significantly positive impact on the ratio.

Locking IDO Allocations

With the aim of reducing early growth phase free or low-priced HELIX entering the market, all non-public-rate tokens available in the IDO are locked and distributed gradually.

The period of distribution for all airdropped and early tier HELIX is 12 months, with 25% of these tokens being released every 3 months from the launch of the platform. This balances the value that early adopters gain with the tokenomic stability of the ecosystem.

Increasing Utility with Vaults

Adding locked vaults was originally set for inclusion post-launch, however to maximize early HELIX token utility and to reduce token velocity as much as possible from day zero, this feature is included at launch. Vaults are long term single asset pools where HELIX can be locked for 3, 6, 12, 18 or 24 month periods, with progressively larger daily rewards for longer lock times. Initially there will be a single vault for HELIX emissions from HELIX locking, however further vaults may be included in order to support the growth of the Helix ecosystem.

Governance Control over Multiple Locked Allocations

To increase the governance utility of owning HELIX, decision making processes that have tangible impacts on the protocol are being implemented from launch and increased over time.

As well as the general voting system implemented on the platform where core and community voting require HELIX ownership, key decisions relating to allocation unlocking and usage are also in place.

These include community voting determining the application of any CEX liquidity allocation tokens unused after 12 months from launch, as well as the ability for HELIX holders to vote to allow 50% of any Geometry Skunkworks release to be accessible to the team 6 months early if needed and agreed upon with the community.