The core foundation of the Viper Protocol is the Viper (ticker: VIPER) token.
It is aimed to be fairly and widely distributed, with focus on rewarding early and active supporters of the protocol.
VIPER and its role in the VenomDAO ecosystem
We will eventually launch VenomDAO which will be the governance system controlling all the respective ecosystems deployed on all chains we’re active on.
VIPER will serve as the governance token for all of the protocols and products that are launched on Harmony. At a later stage during 2021/early 2022 the VenomDAO will be introduced which will serve as the overseeing governance for all of the ecosystems, protocols and products that have been deployed on multiple blockchains.
VIPER can be viewed as having voting rights in a local election (Harmony) but also in a national election (VenomDAO). VIPER will carry more voting power on Harmony/in the Viper Protocol compared to the VenomDAO which will include governance votes from all chains and ecosystems.
The VIPER token has a hard cap of 500,000,000 tokens and features an extensive lockup model where 95% of earned tokens will be released at a later stage in the future and 5% will be available directly.
This model is intended to disincentivize heavy farming and selling pressure by participants who aren’t committed for the long-term sustainability of the protocol.
The token lockup mechanism is forked from Bao.finance with some slight improvements and modifications.
The Viper token will be configured to lock 95% of all newly minted supply during the yield farming stage until 00:00:00 UTC December 25th, 2021.
When 00:00:00 UTC December 25th 2021 has been reached the locked supply will slowly start to unlock on a block-per-block basis until 00:00:00 UTC December 25th, 2022.
By the end of 2022 roughly 480 million VIPER tokens are expected to have been minted. Starting 2023 - Q1 the final 500 million cap is expected to be reached. From start to finish it’ll take roughly 2 years in total to reach the cap. We already published a detailed token emission schedule that you can find here, we'll also publish detailed figures for locked/unlocked token ratios and much more — so stay tuned!
For comparison’s sake, VIPER’s supply will be 0.5x of Uniswap’s and 2x of Sushiswap’s. It’s worthwhile to mention that the VIPER token will be the governance token for the entire Viper Protocol and all of the products that will be introduced — not only for ViperSwap.
We’re already planning the next set of products, and future use cases of the VIPER token might include burning VIPER as collateral for synthetic asset collateralization or for e.g. burning VIPER as an incentive mechanism for maintaining an algorithmic stable coin’s peg at $1.
We’re still exploring ideas — but we’re very confident that the 95%/5% lockup system and future token use cases will lead to tokenomics featuring a reasonable cap, circulation and emission schedule.