Core Tokenomics
Bluetail's financial philosophy.
Denomination
Bluetail is demonimated 100% in $APE. This includes all pools and payouts. Bluetail shall first seek to pay all costs in $APE before determining another method of payment. There are two major reasons for this:
Denomination in $APE bolsters the case for regulatory bodies to consider $APE a utility token (we will seek consistent legal guidance on this as the issue evolves).
Removing stablecoins from Bluetail operations shields the protocol from the volatility of fiat/crypto conversion rates.
Funding Pool(s)
For the first 2 years, Bluetail's pools will be funded from $APE staking/yield farms containing $APE. In the aggregate, these activities will be referred to as the "Funding Pool."
We expect staking/farming to facilitate a year over year increase of ≈ 20% $APE in funding pools for the first two years of Bluetail operation. After two years, we expect revenues from licensing and performance rights activity to take over for the diminishing returns of staking/farming rewards.
Operations Pools
Bluetail shall maintain pools for the following operations:
Rewards — $APE paid to signed artists
Marketing — to drive traffic, build branding and perform PR
Legal — to remain in compliance with applicable regulations while expanding protocol operations
Bounty — to incentivize white hats to help protect the protocol
Discretionary — to be used for petty cash, unexpected emergencies and special events/rewards
Splits
Each period, $APE earned from Funding Pool is split between operations pools in one of two forms based on total plays of signed artists:
Form 1: Ramping Up
Should total engagement from signed artists fall short of the engagement necessary to max out rewards distribution for that period, the Funding Pool shall fund Operations Pools by the following percentages:
Rewards — 55%, Marketing — 35%, Legal — 5%, Bounty — 5%, Discretionary — 10%.
Form 2: Building Rewards
Should total engagement from signed artists meet or exceed the engagement necessary to max out rewards distribution for that period, the Funding Pool shall fund Operations Pools by the following percentages:
Rewards — 80%, Marketing — 5%, Legal — 5%, Bounty — 5%, Discretionary — 5%.
Controls shall be set up to easily modify these numbers upon passage of an AIP or another agreed upon medium.
Loan Limits
Because all transactions are denominated in $APE, there is no risk of forced loan liquidation. In order to incentivize loan payback, a standard time limit of 120 days will be imposed on all loans taken from Bluetail.
This loan limitation is created to be more attractive than the 90 day standardized loan of the leading NFT loaning platform NFTfi.com and may be changed in order to compete with NFTfi.com.
Percentage Based Tokenomics
All pools are based on a percentage of yield returns, creating perpetual income that will grow the pools over time.
Though this method disallows the platform leverage to throw lump sums into huge marketing efforts, the platform can conduct consistent marketing activities that coincide more closely with the size of its organic audience. This ensures a more engaged audience and reduces the proliferation of bad actors and hackers. The goal is steady organic growth that does not outpace the growth of the Funding Pool.
---> One Strike <---
To disincentivize bad actors, artists that do not pay back loans within the specified time period are immediately blacklisted. On loan default, the artist's collateral value build is immediately returned to the Funding Pool.
Blacklisting takes place over all web2 and web3 social and financial accounts to ensure unscrupulous creators suffer untenable brand dilution.
Not to mention Apes will read your punk ass for filth on Twitters. Fuck with Bluetail, cancel culture is real. 🤪
On the road to automation, Bluetail administrators reserve the right to manually defeat gamesmanship that attemps to cheat the Bluetail system in any way.
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