Apollo Tokenomics
The Apollo token ($APOLLO) is a deflationary utility token, with a focus on simplicity and is core to the Apollo Project and will be relaunched on Neutron.
Many projects both inside and outside of Cosmos have attempted to attract users and maintain a high value through “high FDV low float” tokenomics . However over the last year we have seen increasing pushback against projects implementing these kinds of tokenomics, as they are now seen as predatory against less informed market participants, and lead to “down only” token prices due to continued VC and team unlocks outpacing the ongoing buy pressure.
Furthermore, with the increasing sophistication of the remaining market participants, these tokenomics actively discourage new users from buying into projects, as they know there will be constant supply unlocks dumped on them.Apollo is taking a radically different approach, at least for Cosmos.
Taking inspiration from a number of bear market success cases, such as $ATOR, $UNIBOT and $HILO on Ethereum mainnet - $APOLLO will be the first utility project to launch on Cosmos with a fully diluted supply and deflationary tokenomics from day 1.
This will provide supporters and potential investors of Apollo reassurance that there will never be more $APOLLO on the market than there is today.
$APOLLO Supply
The original $APOLLO supply was 100m tokens, however this has already been reduced by ~30% and the Apollo team will continue to look for ways to permanently remove $APOLLO from the supply ahead of launch.
Based on this, $APOLLO will launch with 100% fully diluted supply of ~70m tokens, with built in deflationary measures from day 1.
Deflationary Measures
- Profits from Apollo’s Vaults and products will be used to buyback and burn $APOLLO tokens from the market.
- $APOLLO will have a 3% tax on both buys and sells of the token with 50% of this tax being used to burn Apollo and 50% being used to support the ongoing development of the Apollo project.
- Buyback and burn utilising the Apollo treasury. Roughly $500k USDC from our Terra “Warchest”, will be used for buybacks and burns over the first 1 to 2 years, while we bootstrap the usage of our Vaults and products.
How $APOLLO will be launched
$APOLLO will be launched on Astroport (Neutron) as a APOLLO/wstETH pool . While the pool will not initially be incentivised, Apollo holds a Treasury which will be used to support the Apollo launch through POL, buybacks and incentivising liquidity. As an example, Apollo currently holds over 2m $ASTRO, which we can use to direct incentives to the $APOLLO LP when $vxASTRO is live.
The Long Term plan for $APOLLO
The idea early on is to make the most of launching with a fully diluted token, helping Apollo to attract a large diverse community from across Cosmos and Crypto - enabling Apollo to become the LSDfi platform on Cosmos.
We expect these deflationary tokenomic will attract some attention within the Cosmos ecosystem due to their uniqueness, but this is just stage 1. Once a sufficient % of the total $APOLLO supply has been burnt (as decided by $APOLLO governance), stage 2 will focus on the longer term plan of increasing POL and introducing more utility for the $APOLLO token, such as a fee reduction token for Apollo and partner projects.
We will also be working closely with other projects launching on Neutron and Cosmos to build a sustainable DeFi ecosystem, with integrated and beneficial tokenomics.
