Unveiling Idle Governance

UPDATE — The below model and distributions for $IDLE have been updated. You can find the most recent release here:

Since the inception of Idle, our goal has always been to design a financial infrastructure that could operate without relying on the effort of a single entity.

We now want to remove an additional degree of dependency, embracing an impartial and trust-minimized way to supervise and operate the protocol.

Today, we want to kick-off a governance system that will replace Idle protocol administration power with community governance — enabling users and contributors to propose, debate, and implement changes to Idle.

The IDLE Governance Token

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All starts with IDLE.

It is a token (ERC-20) that allows the owner to propose and vote any proposal made by token holders, or delegate voting power to another address. Anybody can participate in Idle governance by owning IDLE or receiving delegation.

The introduction of IDLE serves these purposes, allowing shared ownership and fostering harmony between passive users, more-active contributors, and the core team. Together, they will actively guide the protocol hereafter.

We aim to transit into decentralized ownership with the help of the IDLE token in late October/early November 2020.

IDLE enables community governance — it isn’t a fundraising instrument or investment opportunity.

IDLE Allocation

13,000,000 IDLE will be minted on token generation event and will become available over the course of the next 2-3 years.

We will implement two different distribution programs:

Public Reward Program (51% of total token supply) with 2 years distribution

  • LPs Fund (38%)
  • Early LPs Fund (2%)
  • Ecosystem Fund (11%)

Team&Investors Program (49% of total token supply) with 2-3 years distribution

  • Current & Future Team (28.05%)
  • Pre-Seed Investors (5.95%)
  • Seed Investors (15%)
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IDLE will be publicly awarded only to liquidity providers and active contributors to the ecosystem. There’s no public sale or ICO/IDO planned.

Reward distribution schedule

4,940,000 IDLE will be allocated for all pools to LPs proportional to liquidity over the course of the next 2 years.

This program will target all the pools on Idle (DAI, USDC, USDT, TUSD, SUSD, WBTC) with both BestYield and RiskAdjusted strategies. Distribution is proportional to the utility generated by each pool.

The model for the distribution will be crafted to incentivize long-term liquidity providers. The core concept would be to give extra-rewards for long term provider while getting a decentralized distribution in the first 2–3 months.

These IDLE tokens are not subject to vesting or lock-up.

A retroactive acknowledgment

Idle owes its achievements to a loyal early user base that have joined its journey over the last year since the initial beta version in August 2019. These community members will naturally act as advocates for Idle.

260,000 IDLE will immediately be available to early liquidity providers and users based on a snapshot ending on TGE.

The distribution formula takes account of LP liquidity on a per-block basis since the deployment of Idle v2 (Feb 2020), ensuring that rewards are proportionally weighted towards LPs that provided liquidity since inception.

We will also equally-distribute a fixed portion (5,000 IDLE) of this retroactive distribution to our beta users that provided liquidity to Idle v1 (since Aug 2019).

Governance framework

Historia Magistra Vitae. Governance tokens are still experimental, but we’ve been closely observing other models, from the most radical to the most robust ones.

Our aim is to implement a governance system that anybody can easily participate in leading the direction of Idle.

By participating in the governance process, users can coordinate and propose to change protocol parameters such as:

  • Fee level & address
  • Rebalance address
  • % of unlent funds for quick swaps
  • Add other governance tokens to distribute/farm
  • Add other protocols to Idle ecosystem
  • Add other asset classes
  • Add strategies on top of Idle optimization layer

Ecosystem Fund

We included an Ecosystem Fund, a community-managed treasury that allows governance to spin-off multiple programs to incentivize Idle ecosystem’s contributors. We hope to see a variety of experimentation, including ecosystem grants, tailored staking systems, integrators programs, insurance mining, community-driven features, and public goods funding.

IDLE holders will have the duty to guarantee a healthy governance process, in compliance with pertinent regulations and laws. We will encourage and help the community to consult legal and regulatory professionals when it comes to implementing a specific proposal.

Our vision stands clear: money should never sit still. And our mission is to make Idle the most complaint and reliable protocol to automatically and algorithmically manage funds, for individuals and businesses.

We’ll be releasing more details of this plan in the coming weeks— stay tuned!

Stay in the loop

We built Idle for the Ethereum ecosystem and its great community. We’d love for you to be part of our governance and development process.

To get the last updates about the protocol, Twitter is what you’re looking for.

If our mission speaks for you, the community is waiting on Discord or Telegram. We’d love to hear any questions, ideas, or feedback from you.

We are tokeninzing the best interest rate across different lending protocols on the Ethereum money market.

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