Token Distribution
Last updated
Last updated
Key Concepts:
Shares Certificate
Staking
Yield Farming
Futures
Summary:
Utilizing the LINQ LocQer, project owners or holders can distribute ERC20 tokens to their holders who possess either Virtual Shares (V-Shares) or Token Shares (T-Shares) in the project's locker. Project owners may add new reward tokens at any point and distribute multiple tokens simultaneously. Token shares are created when a project owner requires a specific ERC-20 token to be deposited to earn a reward, whereas Virtual Shares are certificates with a specific value (of shares) assigned by the developer upon issuance.
Example:
Bill seeks to reward his holders through a special revenue-sharing event by depositing WETH, USDT, and LINQ tokens, distributing these tokens over time to engaged project participants.
If Bill aims to incentivize deposits for earning rewards and making them more exclusive, he would enable token shares. Alternatively, if he wishes to issue rewards without requiring deposits, this option is also available.
Bill begins by opening three new reward slots and depositing his tokens into the locker. Once completed, these tokens are immediately incorporated into the reward distribution cycle, making them claimable by LocQer project participants. Bill can choose to distribute all revenue shares immediately or opt for a gradual release over several days.
After completing this revenue-sharing cycle, Bill can repurpose his LocQer for the same rewards or introduce new tokens at his discretion.
Benefits to Holders:
Holders gain the dynamic ability to be rewarded for holding or staking their chosen token. They also have the option to sell their certificates, offering new freedoms in realizing their rewards.
Benefits to Project Owners:
Owners utilizing our system access a powerful and flexible distribution or staking process that revolutionizes reward delivery. If staking is enabled and time locks are implemented for earning revenue shares, the owner effectively creates a futures market for the project, as the staked tokens and future yields become liquid through the certificates as the investment vehicle. By providing powerful financial tools for investors, projects can achieve greater adoption, exposure, and increased liquidity from arbitrage opportunities.
Further Details:
The LocQer can be configured into various staking systems currently in use but with the added advantage of the locked tokens remaining liquid, attached to an NFT rather than a private wallet. This grants holders unprecedented flexibility with their investments, transforming the crypto ecosystem into a genuine financial marketplace for the first time with the trading of bonded yield-bearing assets.
The LocQer serves both as a token vault and a distribution protocol, executing the distribution module uniquely through our certificate system. Instead of directing outputs of distributions to a destination wallet for claiming, we direct them to a financial instrument (an NFT), unlocking a novel and potent method for investors to trade their yield-bearing assets and discover profit opportunities.
