AADA Tokens as the Soul of Projects: Value and Growth

A DeFi project without a sound and sustainable tokenomics are, in our opinion, “soulless”, because tokens serve two crucial primary functions: value encapsulation and growth incentivization. The Aada team has been designing and will always design future token economy models with these keywords top of mind.

AADA’s v.1 token economy design will thus be upgraded accordingly to engage and make the platform work for all. Today, we are excited to share the details of the new AADA tokenomics, dubbed “AADAnomics v2”.

Summary

• Besides governance, AADA tokens will have two utilities for holders: Lending and Borrowing allocations and platform fee dividends on AADA.
• Genesis Supply 100M AADA -> Token Supply 35.75M AADA
• 35% AADA Token Supply AADA to be shared through Stake Pool Offering — Fair Launch
• AADAnomics v.3 to be announced after Initial Stake Pool Offering finishes.
• Undistributed Tokens through ISPO — to burn. Expected AADAnomics v.3 Token Supply — 30M
• Private Investors shares rise in value at a rate of 1 : 2.8
• Private Investors locking period starts from TGE with 9 month vesting period, including a 1-month cliff

It’s been a wild ride since Aada finance start. From a form of Decentralization idea and whitepaper to a new company, exceptional community, and many new connections. We are thankful to be part of Decentralized Finances at the fastest growing PoS, Blockchain — Cardano, and serve people with non-custodial financial services to people in need. While we have spent multiple hours communicating with Venture Capitals, Private Investors, and Aada Community! We are thrilled to share our major update — AADAnomics v.2.

Since the commence of the idea of Aada, the goal was to launch Aada as much as possible in a decentralized way, raising capital through ICOs while selling tokens didn’t look fair, and the most powerful signal coming from the community was — “tokenomics” we heard it clear. So this is what we are doing — we are changing our tokenomics to a more detailed and prominent one. We think we have done it thoughtfully and did it to benefit everyone and, most importantly, AadaDAO and its token holders.

It is a grandiose event but also a must-to-do one.

Let’s start with the most important — supply. Genesis AADA amount was 100,000,000 AADA. This amount of tokens inflates our marketcap significantly. A large marketcap increases instability in token price and leaves less space for growth. Several influential partners downgraded our project a lot simply because of the too large marketcap. So we are reducing the total supply from 100,000,000 to 35,750,000 AADA. While a massive -64.25% decrease in the supply will bring more value to our current token holders. Also, it will bring a weighty vote to Aada’s Decentralized Autonomous Organization(DAO) governance. Lastly, it will make the AADA token more stable and valuable for any potential holder.

So what will happen with 64.25M AADA?

In short — we will burn them. We are removing 64.25M AADA tokens from the market by Cardano native burning function. This AADA tokens amount will be destroyed without the ability to recover it. Finito.

We will run highly cost-effective incentive programs and initiatives to help facilitate and ensure the Aada platform and community’s continued growth. Meanwhile, the AADA token will be the ideal vehicle for capturing and representing the value of Aada’s economy and ecosystem, and the platform’s collective value will be distributed equitably and generously among our loyal supporters.

You could spot that there is no more DeFi academy in our revised tokenomics. We decided not to invest in building the DeFi academy platform and focus more on finance protocol. DeFi Academy will be funded by Team Tokens.

AADA Token Allocation

The total supply of the AADA token is 35,75M (35,750,000). The allocation is described below:

• Strategic Partners: 5.59%
• Private Round: 15.38%
• Initial Liquidity Provision (IDO): 2.10%
• Core Team/Future Hires: 8.39%
• Public Distribution(ISPO): 34.97%
• Marketing/Partnerships: 4.20%
• Advisors: 2.80%
• Staking and Governance: 23.78%
• Token Liquidity: 2.80%

We have created a special fund for strategic partners. This bucket is necessary in order to build connections, community and get access to scarce resources. It is dedicated to acknowledged firms with established success and influence on the Cardano ecosystem. However, not the so-called ‘VC’ will be able to get into the Strategic partners bucket.

Marketing and Referral is the second largest one which we can cover in-depth. Allocating tokens to Marketing will help us to make partnerships with agencies, influencers, and referral programs. This will allow us to exchange locked-tokens for marketing services. You can find this section in every successful project tokenomics.

Public Round allocation is for IDO that will be distributed shortly.

You can find another change in Governance and incentives, it was reduced from 30% to 23.78%. We have calculated that this amount will be enough for governance and security staking for >20 years. Additionally, on-platform staking will be incentivized by distributing platform usage fees to stakers.

Another update is the token distribution. We have been pushed back by IDO platforms because of the unconventional way private sale tokens are locked. We were requested to update the locking rules from 6 months after a purchase fact to more conventional locking, otherwise, no IDO platform would accept our launch.

We were working hard in order to cover our community interest and build a new locking structure. Locking structure changes to:

All the locked tokens will be locked for 9-months with a monthly vested mechanism. This will unlock 11.11% tokens every month.

Let’s spend more time understanding what is different. Let’s say that you have purchase 20,000 AADA on August 15th. With the new locking, you will start receiving tokens a month after the IDO event, which will give you tokens sooner. However, tokens will be distributed evenly across the months. This is a very important factor in making AADA token prices much more stable and attractive to new buyers. Additionally, it will benefit locked-tokens holders enormously.

Token locking change takes into effect immediately!

Updating tokenomics is a sign of progress and community involvement. Not doing so would lead to stagnation and the inability to compete. We at Aada want to compete, learn, iterate and build exciting products of the future finances.

Thank you everyone for making Aada so successful, we hope you enjoy Tokenomics update and everything else arriving in the coming weeks and months.

Find Aadanomics v.2 here

Take part in demo app — https://app.aada.finance

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