Announcement of Upgrade of CARROT Tokenomics and the Boardroom

When we were collecting upgrade suggestions for the Boardroom, we received suggestions from users of Ampleforth and Badger DAO, who gave us very professional suggestions. Team Rabbit would like to thank 5 winners and all of the users for your positive contribution and support during the ongoing launch of new Boardroom upgrading. We will distribute the 5000 RABBIT reward from the DAO governance fund as these users participate in governance.

In the upgrade last Wednesday, we did the upgrade according to the original plan and fulfilled our upgrade commitment. And now we have summarized the suggestions of these users for publicity and discussion, and after confirming the plan, we will upgrade in the next version. The details are as follows,

Draft of CARROT Tokenomics Upgrade

CARROT upgrade principle: increase openness and independence, and encourage users to earn profits when holding.

1. CARROT holders will get 70% of the inflation reward for each inflation, which encourages users to exchange and hold

Users can obtain CARROT global inflation reward by purchasing, so that CARROT tokens have their own application scenarios and incentive mechanisms. The upgrade of this mechanism will make CARROT’s ecology more open. It is no longer based on providing CARROT liquidity as the main incentive mechanism. Users who exchange and hold are the main incentive objects.

Note: In addition to Rabbit reward, farmers who provide CARROT liquidity can also get CARROT inflation reward. After farmers withdraw liquidity, they will receive more CARROT than they provided as the reward is included.

2. Slow-release inflation mechanism, each inflation will be issued with a index of 15%

The purpose of adjustment is to reduce the Impermanent Loss of Carrot-BUSD farmers and to incentivize the increase in liquidity.

Global Inflation = (24 hours TWAP -1.05) *0.15*100%

Global Deflation = (1.05 -24 hours TWAP)*100%

3. The Pegged Range according to the elastic mechanism is now 1-1.05 BUSD

Inflation: when price higher than 1.05

Deflation: when price lower than 1

Between 1–1.05, neither inflation nor deflation will be issued

4. Use of veCARROT will be avoid burning and arbitrage

You can choose to mint veCARROT with CARROT when the exchange ratio of CARROT to BUSD drops below 1:1. veCARROT can avoid being burned. When the 1-hour TWAP (Release Weighted Price) reaches 1 BUSD, you can use veCARROT release to CARROT at a ratio of 1:1. Note that this operation can only be performed when there is enough of CARROT in the Treasury Balance.

5. To enhance the independence of CARROT as an elastic stablecoin, CARROT will establish an independent section

We have added various Carrot ecosystem functions in the next version. The CARROT-BUSD-pancake-LP liquidity reward pool will be added.

6. CARROT Inflation Incentive Distribution Rules

70% of the reward will be allocated to the LP pool. Users who hold Carrot in their wallets will automatically get an inflation reward after each inflation.

10% will be allocated to the seigniorage contract, which will be used for incentives and market construction for the new CARROT-BUSD-LP.

10% will be allocated to users who stake veRabbit in the CARROT reward pool on the Boardroom.

10% will be allocated to the Treasury Balance: when there are veCARROT not released to CARROT, the inflation reward will be stored in the Treasury Balance, until the amount in the Treasury Balance equals circulating amount of veCARROT.

Draft of Upgrade of the Boardroom

The main purpose of the Boardroom upgrade: to reward veRabbit users. Continue to add various reward pools to increase the income of veRabbit users. Realize veRabbit’s governance function and new ecology in this section.

1. Add RABBIT reward pool

We will decrease allocation points of ibRABBIT in the STAKE section, and distribute this reward points to users who stake veRABBIT in the RABBIT reward pool of the Boardroom.

2. Add BNB reward pool

In the next upgrade, we will activate the use of reinvestment rates. The plan is to convert reinvestment rates into mainstream assets such as BNB, CAKE, MDX, BTC, ETH, etc., as farming reward of staking veRABBIT.

3. CARROT reward pool will receive 10% of the inflation reward

CARROT is a part of the ecosystem of RABBIT Finance, but not all of it. Community members believe that veRabbit holders receive continuous CARROT inflation rewards more than occasionally high CARROT inflation rewards. We believe that after this upgrade, CARROT’s reward percentage will be lower, but veRABBIT holders who staked will obtain more lasting and stable inflation benefits.

Note: In case of both inflation and deflation, you need to claim rewards in time, otherwise the rewards will be cleared.

4. Description of veRabbit’s Unlimited Inflation Incentive Mechanism

Many do not understand why mint 100 RABBIT will get 113 veRABBIT in 7 days, while releasing only requires 100 veRABBIT. Here is the explanation the goal of this mechanism:

1) Provide sustainable incentives to every user who has been minted

Every minted user has contributed to Rabbit Finance because their asset has been locked up for at least 7 days. After users choose to release to RABBIT at a ratio of 1:1, some veRABBIT will be left, and users can use these veRABBIT to enjoy the rewards obtained by the Boardroom for good.

2) It can continuously increase the motivation for users to mint

Users who choose to lock for 7 days can continue to increase their veRABBIT by mint after release. If you don’t do so, your reward ratio will be diluted by users who continue minting.

3) Users who choose to lock their asset for a longer time will always get higher rewards than users who lock their asset shorter.

After calculation, those who choose to lock their positions every 7 days, the reward of cyclical lock is still not as high as users who directly lock their positions for 90–365 days. This rule is fair, and the loyal users will be rewarded more.

Schedule of Next Upgrade

Product upgrades will be carried out 3 days after the community publicity. Please follow our twitter for a specific time.

Solicitation of Design for Leveraged Trading Feature

According to the Roadmap, we will devote our development efforts to the leveraged trading feature. We expect the launch time to be within two weeks. The audit plan has been submitted to PeckShield and audit report will be announced within one week. During this period, we will collect suggestions and optimization design for the leveraged trading feature from the community, and use DAO reward fund to reward active users. We believe that when the leveraged trading feature is launched and cross-chain deployment, Rabbit Fiannce will rise again. Appreciate rabbit fans for your continuous support.

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