LONG Token
Use Cases & Key Demand Drivers
Governance
LongTerm token (LONG) is the governance token of the LongTerm Finance ecosystem. It is an ERC20 token deployed on the Polygon (Matic) mainnet.
Token contract address on the Polygon mainnet: 0x613D5D57Ce31A8EB3d9AB9750F79dF3b57cC9F56
It enables you to vote, propose, decide and debate changes to the protocol, with each LONG token representing 1 vote.
Voting is a crucial part of keeping the platform as decentralized and as safe as possible for everyone in the ecosystem. It also gives you, the user, the power to have a meaningful impact and influence on the protocol, and incentivizes long term thinking and holding.
Incentives
Apart from governance, it plays a major role in liquidity incentives for ALTS and LONG liquidity pools on SushiSwap, as well as various ecosystem incentives (e.g. bug bounties and partnerships).
We expect to actively participate in multiple incentivized partnerships, for example, marketing and collaborative partnerships and also we plan to expand the bug bounty program with the ImmuneFi partnership in the mid to late 2022.
Monthly Buyback & Burn
Every month, we'll conduct a buyback & burn event, in which we'll take 75% of the protocol's earnings for that month (which come from the burn fees and borrow fees), swap them for the LONG tokens and finally burn them for good, thus decreasing the token's circulating supply. Also, in order to prevent frontrunning, this event will happen at randomly selected date each month.
As for the other 25% of the protocol's earnings, they'll primarily be used by the core team to further develop the ecosystem, as well as to strengthen the DAO's treasury and provide funding for various partnerships, marketing initiatives and other efforts.
This process is expected to start sometime in the mid to late 2022. We plan on posting burn tx hashes here to make the entire process more fair and transparent for the community.
Because LONG token has the max supply of 10 million tokens, this buyback & burn mechanism effectively makes it deflationary, and also ensures that there will always be a buyer of the tokens on the market, which will support the token's price and increase its valuation over the long term.
Burn Fee Discounts
The standard burn fee rate when burning ALTS tokens is 2%. This has been true since the very beginning of the protocol. To offer the additional utility and benefits of being a LONG token holder, we implemented the burn fee discount model.
Discounted burn fee rates can be calculated as follows:
| Level | Amount of LONG Tokens Held | Discounted Burn Fee |
|---|---|---|
0 | less than 100 | 2% (standard rate) |
1 | 100 or more | 1.5% |
2 | 1,000 or more | 1% |
3 | 10,000 or more | 0.5% |
4 | 100,000 or more | 0% |
Also, it's important to note that holding LongTerm Bulls NFTs also makes you eligible for the burn fee discounts. Holding just 1 LongTerm Bull bumps up your burn fee level by 1.
For example: If you hold just 100 LONG tokens, you'll be eligible for the level 1 burn fee rate, which is 1.5%; however, if you hold 100 LONG tokens and 1 LongTerm Bull NFT, you'll automatically be eligible for the level 2 burn fee rate, which is 1%.
Combined with the monthly buyback & burn mechanism (as explained above), this is a powerful combination of the true utility & positive effects on the token price, all of which incentivize the protocol's users to be long-term holders instead of day traders and speculators.
Tokenomics
LONG token features robust and carefully designed tokenomics, with the max supply of 10,000,000 tokens.
Tokens are distributed as follows:
Founding Team: 20% (2,000,000 LONG), vested linearly over 3 year period
Advisors: 5% (500,000 LONG), vested linearly over 3 year period
Treasury: 5% (500,000 LONG), vested linearly over 3 year period
Initial Liquidity: 5% (500,000 LONG), paired with WETH on SushiSwap
Liquidity Incentives (LP Rewards):
ALTS / WETH liquidity pool: 25% (2,500,000 LONG), distributed linearly over 3 year period
LONG / WETH liquidity pool: 40% (4,000,000 LONG), distributed linearly over 3 year period
All distributed LP rewards are divided into 2 parts:
Claimable Rewards (20% of total rewards): available to claim immediately
Locked Rewards (80% of total rewards): unlocked 6 months after the start of the pool
Last updated
