Empowering the Bonzo Community: Updated $BONZO Tokenomics, Bonzo Points, & Pre-TGE NFT Sale
Rapidly changing conditions across the Web3 industry calls for being agile and adaptive in order to achieve both short and long-term success. This is especially true in the early days of protocol or network's formation, where certain foundational decisions often set a rigid trajectory that plays out over the course of many years. Those decisions must be optimally calibrated in an attempt to hit desired targets long into the future.
With this in mind, the Bonzo Finance protocol has undergone a pre-TGE (token generation event) revision of $BONZO tokenomics, unlock schedule, and Bonzo Points program — much to the benefit of its early community supporters (Bonzo NFT Collectibles holders) and the broader ecosystem. At the core of these changes is a desire to get more $BONZO tokens widely spread throughout the community, earlier on in the protocol’s lifecycle — from an economic perspective, this type of activity typically results in a protocol having a high(er) float, lower fully diluted value (FDV) of its native token at its token generation event (TGE).
In addition to $BONZO tokenomics updates, an additional upcoming NFT sale via HeadStarter will be revealed soon. These NFTs will offer community utility and be burnable for $BONZO tokens after the token generation event (TGE), creating an additional entry point into the Bonzo Finance ecosystem.
Full details on the $BONZO tokenomics and Bonzo Finance NFT Collectibles updates are available in the Bonzo Finance Litepaper. An archive of the deprecated tokenomics schedule is also available for review here.
Let’s dive into these key updates!
Existing NFT Holder $BONZO Allocations & Distributions
The $BONZO token allocation for existing Bonzo Finance NFT Collectible holders has been restructured to be ~1.9x the number of $BONZO tokens previously allocated to the Desert, Ocean, and Space NFT collectibles, and ~2.14x the number of $BONZO tokens allocated to the Singularity NFT.
No changes have been made to the bonus allocations.
In addition to the allocation increases, the distribution timeline for NFT holder tokens has been accelerated. Please review the table below for specifics on both of these changes.
Updated $BONZO Tokenomics
To ensure $BONZO tokens are widely spread throughout the community, earlier on in the protocol’s lifecycle, the $BONZO tokenomics have been adjusted. From an economic perspective, this type of activity typically results in a protocol having a high(er) float, lower fully diluted value (FDV) of its native token at its token generation event (TGE).
The most notable changes to the $BONZO tokenomics include the following:
- Bonzo NFT Collectibles: The allocation for Bonzo Finance NFT Collectibles holders has been raised from ~5.318% of the maximum supply (21,273,800 $BONZO) to 10% of the maximum supply (40,000,000 $BONZO).
- Please note that the original tokenomics cites an allocation of 8.25% — this original % assumed all original Bonzo Finance NFT Collectibles were minted in the limited-time sale, which they were not.
- Claimable $BONZO for Pre-Season Points: 0.5% of the maximum supply (2,000,000 $BONZO) will be distributed (made “claimable”) at TGE, for Bonzo Pre-Season Point earners.
- Deprecated Emergency Reserve Allocation: The 3.011% of $BONZO originally allocated to the “emergency reserve” has been removed, and funds have been reallocated to the Bonzo Finance Treasury. The Bonzo Finance Safety Module and Staking mechanism offer adequate support without needing an additional, initially anticipated, reserve.
As the Bonzo Finance protocol evolves, so does our commitment to the community that’s brought us this far. With these updates, we’re empowering everyone to take part in building a stronger Hedera DeFi landscape.
Updated Bonzo Points Schedule
Season one of Bonzo Points officially launched on October 28th, 2024, with the launch of the Bonzo Finance protocol on Hedera mainnet. In accordance with overarching objectives to get $BONZO tokens widely spread throughout the community, earlier in the protocol’s lifecycle, changes to the Bonzo Points season schedule(s) have been adjusted.
Many questions are received with regards to a conversion rate between Bonzo Points and potentially claimable $BONZO rewards at each season's end. Among the many reasons why Bonzo Points do not have a conversion rate to $BONZO tokens, an important one is that protocols using points programs typically utilize regression curves to allocate tokens based on the total point accumulation across all users (this is how, for example, token-weighted airdrops across the Hedera ecosystem work). This approach ensures the fairest distribution of rewards, but can't be determined until all points have been distributed. In addition, by not having a fixed conversion rate, it increases the difficulty for malicious users to game the points system.
Join the Community
We welcome everyone across the Hedera ecosystem and broader Web3 community to join us. If you have questions about the protocol, NFT utility, updated tokenomics, or anything else, please give us a follow on 𝕏 and join the official Bonzo Finance Discord. The Bonzo Finance Labs team is always available to help.
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