Popsicle’s Team Burn Proposal

  • ICE as a marketing budget (incentivization)
  • ICE as the governance token (voting power)
  • ICE as the protocol ownership (fee accrual, etc)

ICE as the marketing budget:

Popsicle started its community and attracted users via the initial airdrops. This was a great way to get our name out there, create a community that includes cross chain builders/users, defi enthusiasts, and crypto users of all levels of experience. This is exactly what we wanted to achieve considering that Popsicle is a project that is meant to make sure that liquidity is there where users most need it.

Ice as the governance token:

Popsicle Finance, is meant to be a fully decentralized protocol, which currently still runs a bit centralized. We have of course released the governance portal, and are working on finalizing the multisigners. In terms of activity on the governance portal we are seeing between 10k and 20k votes on the important proposal (remember we are using quadratic voting, this is not the number of ICE that are actually voting). This is a relatively strong turn out.

Ice as the protocol ownership:

As we all know, we are soon going to be releasing nICE, which is staked ICE. nICE are the tokens that are earning the fees that Sorbetto Fragola, Limone, and any other future product will be getting.
Considering our current TVLs growth rate, this should become a significant amount.

Please note that these data were collected on the fifth day after Fragola’s launch and the assets’ price in USD are therefore computed accordingly!

So now that we have a general understanding of the ICE token use cases, what are the key questions?

  1. How large does our future marketing budget need to be?
  2. Do we need to attract more talent into Popsicle to take part in governance?
  3. Will a part of nICE fees also go towards developer funds etc?

How much marketing spending do we still need?

This is something that will be variable, but we should not need nearly as many ICE tokens emissions as we have spent already on marketing. The project’s features should speak for themselves. As an example, Fragola has had no incentivization and is seeing constant growth. As long as the product performs well, it will attract new users without a need for incentives. Taking all of this into consideration, we believe that a marketing budget of around 7% of the mintable supply should be held in reserve by the DAO. Furthermore, we believe that drastically reduce the number of tokens that will be minted for LP rewards for one more year since the launch of Popsicle to 3,218,144 will be optimal. Bear in mind that this means that the rewards will still be the same for one more month and the be drastically reduced, but extended up until we reach the 1 year anniversary of Popsicle!

Do we need to attract more talent into Popsicle to take part in governance?

The current community has brought us to where we are today, our voice calls have been extremely beneficial and important for product development. We do not believe however that we need further ICE distribution to attract talent. People that see our product working and being the best, will want to take part in its future and they can do so by actually purchasing ICE tokens from the market.

Will a part of nICE fees also go towards developer funds etc?

This is a question we have been discussing a lot as of recently. Roughly speaking, Popsicle has a running cost of $80k a month which is expected to stay relatively constant for the next year. This cost includes servers, developers salary, and other expenses. However, it may increase as we increase our product suite.

The Team’s Proposal

Considering the use case of ICE, being the marketing/governance token we need to reconsider whether we really need to add 77% more power to either new or existing users.

  • We will allocate 7% of this mintable supply to the Popsicle DAO treasury for governance to decide on its use. This will be executed by all multisigners. This will bring the DAO final allocation to 3,754,501 ICE tokens.
  • As mentioned above, 3.4% of the mintable tokens will be allocated towards the Team/Devs in order to make sure further operating costs and required hiring can be covered, while we wait for nICE fees to start paying for this. This would maintain the Team/Devs token allocation of 6,900,000 ICE tokens unchanged.
  • Extend the LP rewards with 6% of the total mintable supply for one more year. The amount minted will be 3,218,144 ICE tokens.

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Popsicle.Finance

Popsicle.Finance

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