FloorDAO was fair launched on a Copper Token Liquidity Bootstrapping Pool (LBP), on Ethereum mainnet, on February 22, 2022 for its valueless governance token aFLOOR. https://copperlaunch.com/pools/0x70b18450Bd1F9296C38cC36Ac1369F51F45B95F8
aFLOOR or “Alpha FLOOR” will be used to vote in pre-launch governance. Critically, it will be used to vote on the deployment of the protocol, which if passed, will make aFLOOR redeemable 1:1 for FLOOR.
500,000 aFLOOR was be available in the Copper launch and paired with 500 WETH. This was be the entirely circulating supply of aFLOOR (and FLOOR after migration) to start.
Post LBP, a portion of the remaining aFLOOR/WETH liquidity was be moved to a Uniswap v3 pool to allow for ongoing price discovery. ETH raised from the auction will be used to seed the FloorDAO treasury and kick-start rebase rewards and bond markets.
For team incentives, FloorDAO follows the Olympus pOHM model with “supply share” vesting using a pFLOOR token.
pFLOOR is an options contract that allows the holder to exercise their limited right to mint FLOOR. To mint 1 FLOOR, the holder must add 0.001 ETH to the FloorDAO treasury. This ensures that FLOOR remains intrinsically backed.
Unlike traditional vesting contracts, vesting of this option does not happen linearly over time. Instead, FLOOR can only be minted as a percentage of total supply applied, with a hard cap on the amount of FLOOR that can be minted in total.
Note that the team, NFTX, and advisors combined can only ever own a single digit percentage (9%) of all circulating FLOOR.
If a holder had 1,000 pFLOOR options and a supply share of 1%, they would have the option to mint 100 FLOOR if the total supply of FLOOR was 10,000. Their 1,000 pFLOOR would then become fully vested when the total supply of FLOOR reached 100,000. Further increases in supply would not vest any further tokens.
FloorDAO opted for this route as it ensures that the allocations above cannot heavily dilute FLOOR holders at any given time, and also that the DAO remains overwhelmingly community-owned.