WagmiDAO — The Vision
If you have taken a look on the emission schedule in our Gitbook, you must have noticed that emissions are reducing over time until the maximum supply of 500,000,000 $GMI is reached. You might have wondered why there is a maximum supply for $GMI as you wouldn’t find this kind of model with other OHM-type of DAOs or even DEXes.
There is a specific reason for that and we haven’t made it public yet. It is tightly related to our Vision. To reach our Vision of becoming a true RDEX that owns its own liquidity (Protocol-owned Liquidity, or POL), WagmiDAO is developed to evolve in two phases. The first one is inflationary and the second one will be deflationary. This article undergoes both phases of our Vision and explains the major shift from one phase to the next.
The inflationary phase
Capturing market trends & rotating emissions across multiple chains
As we stated in our introductory medium article, we are a Multichain Reserve-Backed Decentralised Exchange. To go multichain in a way that benefits existing token holders, we will bridge our tokens onto other chains — meaning that the maximum supply emitted across all chains is going to be 500,000,000 $GMI. Furthermore, we have a specific reason why we call ourselves a multichain protocol.
WAGMI goes with the flow of chains.
We don’t have to tell you how fast this space evolves. Building a project with a grand vision on a single chain in this fast paced space can mean that you would have built and deployed on a chain where the hype train has passed long ago. WagmiDAO turns this around by rotating emissions across multiple chains to acquire even more capital and grow the Treasury.
Our contracts have been designed and built in a way that easily allows the rotation of emissions across multiple chains and most importantly — to the most hyped chain. This is yet another method to leverage capturing the maximum of capital that can be acquired at any time. We believe that this is what makes us a true multi-chain protocol — by design.
WAGMI goes with the flow of change.
To leverage the rotation of emissions across multiple chains, the WagmiDAO will introduce additional products, which will further increase the flow of capital to the Treasury. One of those products will be our Launchpad, used by early stage projects to raise capital in $GMI. More about that in the following medium articles.
The deflationary phase
So, what is the plan once the maximum supply is reached?
Once the maximum supply is reached, $GMI is destined to become a highly deflationary token. As the Treasury is the center of the protocol, constantly being nourished by all parts of the ecosystem, after about three years it is expected to have grown to a substantial billion-sized DAO governed fund. That means, the protocol will be able to earn great and outstanding yields according to the size of its Treasury. What VCs like SBF Alameda and billionaires like Justin Sun have been doing with farming — WagmiDAO will do in a decentralized way ultimately benefiting $GMI token holders.
The Grand Vision: A Multichain Reserve-backed Decentralized Exchange (RDEX) owning its liquidity (POL)
With the turnaround from an inflationary reward token to a deflationary token, the protocol aims to ultimately achieve its grand vision: Becoming an RDEX that owns its liquidity while token holders become like shareholders that
- earn a share of the RDEX’es trading, minting and redeeming fees,
- and benefit from $GMI buy backs & burns which get leveraged through the growth of the Treasury over time.
Instead of rotating emissions, the protocol rotates liquidity across chains.
At this point the protocol has acquired a substantial amount of protocol owned liquidity (POL), which will make it less dependent on liquidity providers. Once all $GMI have been emitted, the protocol will bridge the POL across chains to capture the highest volume of any given trading pairs, in order to achieve the maximum yield for the DAO, respectively for the token holders.
As an example: If there is a huge BTC volume on AVAX. In the future, the protocol could deploy 100M in liquidity of BTC/USDC on AVAX and attract big percentage of the volume to distribute a share of the trading fees to $GMI holders.
Besides trading fees, the Treasury will continue to earn yields in external protocols to exponentially grow further and benefit token holders, who will become shareholders to — what we believe will be — a gigantic farming protocol — the WagmiDAO!
As an example: If we grow our Treasury to a size of 1B, we will earn approximately 100–250M per year. That means an amount of 100–250 M of yearly buybacks for $GMI (or 15 M monthly).
The WagmiDAO will go through an inflationary cycle until its maximum supply is reached. During the inflationary phase emissions will be rotated across multiple chains to capture the maximum amount of capital. The Treasury will be growing through an inflow streamlined from all elements of the ecosystem. Additional products will be introduced to leverage the ecosystem growth.
Once the maximum supply is reached, the protocol switches to the deflationary phase. At this point, the protocol’s Treasury has already grown to a substantial size, which will make it possible to:
- attract a large portion of trading fees with POL across multiple chains,
- and earn outstanding yields on external protocols.
While $GMI holders become shareholders to a Multichain RDEX with a gigantic yieldfarming Treasury, $GMI becomes deflationary and providing liquidity becomes less and less of a concern for investors, as the POL makes the protocol increasingly self-sufficient over time.
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