Tokenomics
Token Supply & Distribution
unRoll’s tokenomics are designed to create a fair, sustainable ecosystem for all participants. The protocol will generate a total supply of 100 million tokens, with a fixed cap to prevent inflation. These tokens will be divided between two key purposes: supporting liquidity and incentivizing team development.
100 Million Tokens: This is the total fixed supply of ROLL and unROLL tokens.
This means that initially 50M ROLL tokens will be minted and 50M unROLL tokens will be minted.
From the natural process of rolling and unrolling these values will change, BUT the number of total tokens between the two will never be larger than 100M.
95% Allocated to Liquidity: 95 million tokens will be allocated to provide liquidity for up to 10 different token pairs on the Base network. This liquidity is essential for ensuring that traders can engage in arbitrage opportunities between $ROLL and $unROLL tokens smoothly and without significant price slippage.
While not all LPs are released the remaining tokens will be locked in a multi-sign with the team, kols and members of the community.
5% Team Allocation: 5 million tokens will be reserved for the unRoll team. These tokens will be locked for 2 years, ensuring long-term alignment between the team and the community. This mechanism promotes trust and accountability within the protocol’s ecosystem.
There is also a burning mechanisms built into both tokens' tokenomics, more about this below.
Fees & Burn
Each buy and sell transaction of ROLL or unROLL will carry a 5% fee of which 2.5% are automatically burn.
Each roll/unroll action will carry a 3% fee of which 1.5% are automatically burn.
This makes the token deflationary which gives holders a natural yield just by being invested.
The remaining fees will fund the team's marketing efforts and future development of the project.
Incentives
To encourage active participation and liquidity provision, unRoll incorporates several incentive mechanisms:
Liquidity Providers:
Those who supply liquidity to the $ROLL/$unROLL pairs will earn trading fees generated by the protocol. The more liquidity you provide, the larger your share of these fees.
Liquidity provision also enables smoother trading for arbitrage, ensuring that users can take advantage of volatility in the market.
Traders:
Arbitrage traders benefit from price discrepancies between $ROLL and $unROLL. The protocol’s automated arbitrage mechanism rewards those who spot and act on volatility early, allowing them to capture profit margins.
Low transaction fees on the Base network reduce the cost of trading, making arbitrage more accessible and profitable for active traders.
Governance Participants:
While unRoll’s governance tokens are not yet part of the initial token distribution, governance functionality may be introduced in future protocol upgrades. Governance tokens would allow users to propose and vote on protocol changes, such as adjusting fees, introducing new token pairs, or altering liquidity rewards.
Governance token holders would have the ability to influence the protocol’s long-term direction, ensuring community-driven decision-making.
unRoll points:
Get a head start accessing future features, projects and potential future airdrops by collecting our points. Each roll and unRoll action gives you points proportional to the amount rolled/unrolled.
Governance & Participation
In the future, unRoll may introduce a governance token that empowers the community to take part in the decision-making process. Users who hold governance tokens will be able to:
Submit Proposals: Governance token holders can propose changes to the protocol, such as new features, tokenomics adjustments, or integrations with other DeFi platforms.
Vote on Proposals: The community will vote on proposals, with each governance token representing one vote. The more governance tokens a user holds, the more weight their vote will carry.
Influence Protocol Development: Governance ensures that unRoll remains a community-driven project, allowing users to shape its future.
By distributing most of the token supply to liquidity and locking a portion for the team, unRoll ensures a balanced and fair distribution while creating opportunities for users to participate in the protocol’s success.
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