The time has come to initiate Optim’s transition to a fully decentralized protocol.
We’ve released and supported our first product, climbed to the top ranks of Cardano DeFi protocols, and are ready to kick off the next phase of Optim with renewed resolve and at the direction of our ever-growing community of supporters. ODAO, OPTIM token, new products
To this end, we must kickstart the Optim DAO (ODAO) and vote on a few key matters.
In this article we’ll briefly summarize the process for ODAO proposals and voting followed by each item that is to be voted on in Optim’s first ODAO vote. Within 24 hours the proposal will soon be posted and live on our ‘temp check’ discussion forum on Github.
ODAO Process Overview
ODAO proposals and voting can be divided into 2 steps:
1) Temperature Check on Optim’s Github Governance Forum
2) Formal On-Chain Governance Vote on
The Temperature Check on Optim’s Github Governance Forum allows community members to share a proposed idea and gather early community responses. Based on community brainstorming and discussions, the proposers refine their ideas until the point at which they are confident in their proposal’s ability to successfully pass a formal governance vote. Detailed information on how to submit a proposal for temp check on Optim’s Github Governance Forum can be found on our Gitbook.
Official ODAO Governance Voting via the Formal Governance Forum are binding proposals voted on by the community and executed on their behalf by the Optim Foundation via Optim Labs. Proposal creators must deposit $1,000 worth of OPTIM tokens (market price at submission) to create a formal on-chain governance proposal, upon which the tokens are held under Optim’s custody. In case the proposal isn’t successful, the deposited OPTIM is then burnt and removed from the circulating supply rather than returned to the proposer as is the case of a successful proposal. Detailed information on Formal Governance proposals and voting can be found on our Gitbook.
ODAO First Proposal
The ODAO’s first vote will be on a number of matters related to the OPTIM token as well as future Optim governance structure. These are combined into a single proposal to expedite decisions on closely related matters and to facilitate the advance of the ODAO final structure. It should also be noted, given no OPTIM has been released, the first vote will be conducted with Optim Bond Tokens.
The four matters up for temp check then formal governance vote:
- OPTIM token Initial Liquidity Event
- VC vesting schedules
- Bond LP token airdrop
- ODAO Constitution
OPTIM token Initial Liquidity Event
Optim’s Initial Liquidity Event (ILE) will distribute the OPTM and OPTMiz tokens to participants.
Optim proposes to allocate 11% of total supply ~ 11,000,000 OPTIM tokens ~ to its ILE
Another 4% of potential supply, in the form of 4,000,000 OPTIMiz tokens, will also be distributed
More detail on OPTIMiz will be released, but when paired with OPTIM/ADA LP tokens OPTIMiz will convert to OPTIM. OPTIMiz tokens are a bonus automatically received with each OPTIM
- 8,000,000 OPTIM tokens will be available for ILE participants in an exchange
- 3,000,000 OPTIM tokens will be paired with ADA for initial POL
(protocol owned liquidity) on a TBD DEX
Distributed pro rata, with each 1 OPTIM token receiving a bonus of 0.5 OPTIMiz
**OPTIM to be paired with ADA for POL is dynamic and adjusted pro-rata to meet exchange rate
*OPTIM and OPTIMiz tokens received by the community will not be in the form of LP tokens.
It is up to individuals to decide what to do with the OPTIM tokens received via the exchange. The LP tokens in TBD DEX will be created by pairing the amount of ADA allocated to the ADA/OPTIM pool with the 3% of OPTIM supply reserved for this purpose.
On October X, 2023 the OPTIM and OPTIMiz tokens will be sent to the ODAO treasury owned wallet for distribution. The ODAO treasury will then push these tokens to the distribution system contracted out to and built by Optim Labs for the ILE.
The Initial Liquidity Event will begin X/X/2023 at 00:00 UTC and end in 24 hours
The ILE consists of 3 phases: First Swap Phase, Second Swap Phase, and Settlement Phase
1) First Swap Phase — an allotment of OPTIM is available in exchange for ADA
2) Second Swap Phase -an allotment of OPTIM is available in exchange for Optim Bond Tokens
3) Settlement Phase — all orders are settled, demand between phases is balanced, and participants’ OPTIM and any excess funds are sent.
First Swap Phase
The first swap phase allows participants to exchange ADA for OPTIM tokens
5M OPTIM are available in exchange for 2.5M ADA during this swap phase
Participants will submit orders, all ADA will be pooled, and distributions will be calculated on a pro-rata basis with each order settling as the amount calculated as percentage of all orders submitted during this phase.. This is not first come, first serve as the intention is to prevent frontrunning bots and disorder during the ILE.
Once an order is submitted it can’t be reversed or adjusted in any way.
In the case that more ADA is sent than OPTIM available, participants will be refunded all excess ADA beyond their final pro-rata allotment. The ADA will be sent back along with their OPTIM tokens after the Settlement phase.
Second Swap Phase
The second swap phase allows participants to exchange Optim Bond Tokens for OPTIM
3M OPTIM are available in exchange for 15,000 Optim Bond Tokens (1.5M ADA Face Value)
Participants will submit orders, all Optim Bond tokens will be pooled, and distributions will be calculated on a pro-rata basis with each order settling as the amount calculated as percentage of all orders submitted during this phase.
In the case that more Optim Bond tokens are sent than OPTIM available in the second phase, participants will be refunded all excess Bond Tokens beyond their pro-rata allotment. The Bond tokens will be sent back along with all OPTIM tokens during the Settlement phase.
Any available unclaimed OPTIM from the second swap phase will be allocated to the pool of available OPTIM for first swap phase participants. If the first swap phase is oversubscribed, any excess second phase OPTIM will be automatically added to fulfill orders placed during the first phase. It will be distributed on the same pro-rata basis as a participant’s percentage of the total order pool.
The Settlement phase is a brief period during which order allocations are finalized and tokens are sent to ILE participants. Operations such as excess second phase tokens being pushed to the first phase and adjusted pro-rata calculations are executed.
1 ADA sent to the ILE contract will be exchanged for 2 OPTIM and 1 OPTIMiz
.50 ADA = 1 OPTIM | 1 ADA = 2 OPTIM + 1 OPTIMiz (bonus)
- ADA can only be exchanged for OPTIM (+OPTIMiz) in 1 ADA increments
- OPTIM and OPTIMiz tokens will be received at end of ILE duration
- The available supply and exchange rate are fixed. If less than 4MM ADA is exchanged, not all OPTIM will be distributed.
- The exchange of ADA for OPTIM is one way and final. There is no pool withdrawal or adjustment period once orders have been submitted.
Optim Bonds values will be calculated at their full maturity value
This equals 100 ADA face value + all potential accrued interest
It assumes a bonds interest is paid to its maximum duration
A 6 month (36 epoch) Bond was issued at 7% APY to lenders
At ILE the Bond is 3 months (18 epochs) into its duration
At this point, the Bond is technically worth 102.33 ADA
(1.75 ADA interest accrued + .58 ADA interest buffer)
If the Bond reached maximum duration of 6 months the redemption value would be 103.5 ADA
Optim’s ILE system would value this bond at 103.5 ADA in calculating the amount of OPTIM a participant receives in exchange for the bond described in the above example.
*Bonds issued and purchased after 10/17/2023 are not eligible for ILE exchange
8,000,000 OPTIM (+ 4,000,000 OPTIMiz)
swapped for 4,000,000 ADA of POL
Allocation of all Optim POL:
- DEX TBD 1,500,000 ADA < > 3,000,000 OPTIM
- DEX TBD 1,250,000 ADA < > 1,250,000 OADA (minted from ADA)
*The amounts above are dynamic but remain in the same percentages if less than 4M ADA is raised
VC Vesting Schedules
As detailed in Optim’s seed round funding Medium article Optim exchanged 10.88 % (10,880,000 OPTIM) for $3.92M. The vesting schedule is proposed as follows:
VC Tokens — 8,689,524 OPTIM (8.69% Total Supply)
2 Month Cliff from Initial Liquidity Event (i.e no tokens to VCs for 2 months)
Months 3, 4 ,5, 6–1,000,000 OPTIM (1%) per month
Months 7 through 27–223,311 OPTIM (.22%) per month
Alameda Research Tokens — 2,190,476 OPTIM (2.19% Total Supply)
2 Month Cliff from Initial Liquidity Event
10 year linear vesting after cliff
Months 3 through 123–18,253 OPTIM (.018%) per month
*If owner does not come forward in timely manner to claim tokens, and if an expiry date on claims can be established by legal counsel, all 2.19% of Alameda supply will be burned
Optim Bond LP Airdrop
Begin OPTIM claims for all liquidity providers who have participated in Optim Bonds no later than 1 month after ILE but likely around 2 weeks after token launch.
Total OPTIM emissions from Bonds thus far is as follows and can be broken down into currently claimable from closed bonds and earned future claims from active bonds.
Catalyst Bond LPs: 16,589 OPTIM
SPO Bond Issuers: 76,000 OPTIM
Optim Bond LPs: 80,000 OPTIM
Earned Future Claims:
Optim Bond LPs: 500,000 OPTIM
*Optim Bond LPs emissions, both current and future, are an estimate but within a 10% margin of error due to pro-rata LP rewards and the unknown closing dates of bonds. However, all potential Bond LP emissions to date comprise less than .75% of total supply.
Future ODAO Structure
The ODAO if all interests represent the future direction of the Optim DAO. It advances us towards a more comprehensive and capable DAO as Optim grows as a protocol.
Below is a brief summary outlining the general structure as well as some of its future workings. The full ODAO Constitution that outlines the future structure can be found here.
We divide the DAO into three branches representing various interests.
The Core, α, represents the interests of the token holders and has power over the protocols. The group that can execute a proposal to change the behavior of things on-chain.
The Council, ∆, represents the self-interest of themselves and has power to manage the treasury. The group that can look and objectively evaluate what is the best strategy to grow the treasury and finance the maintenance and growth of the ODAO.
The Court, ω, represents the ecosystem at large and evaluates the impact of the protocols on it. The group that governs legitimacy of contracts and resolves disputes.
Distinction between governance and meta governance as used to refer to two separate layers of governance. The meta layer refers to the power of branches to restructure other branches, in a circular power structure dynamic, Core checking Council checking Court checking Core. Whereas governance is the branch-internal decision making and responsibility delegation system that may be tailored and idiosyncratic to best represent the interests of the branch.
Meta Governace is used as a framework to keep balance of power in check, with a very simple system of decision making. It is designed to be largely optimistic in a way that each branch self governs to the best of its ability and a meta vote is only used to keep this behavior ’in check’, to be able to step in in case of a problem. The meta governance proposal may be put forward by, for example, Core to change Council. Then, the third branch, Court, has three options. Accept, Deny, and Chain Proposal, the last of which makes the execution of the original proposal conditional on, here in this example, the proposal of Court to change Core, which prompts the decision of Council on that one.