I’ve been thinking of a token redesign for SHARE and I think there is a lot we can take from what CORE has designed. In my opinion, they have the best tokenomics for farming as CORE is a deflationary farming asset. They do this by implementing a Fee On Transfer (FOT) model. Now to incorporate this for SHARE will be a bit tricky as we’ll have to figure out how negative rebase would work, but here is the general framework of what I am thinking:
-SHARE Total Supply - 10,000
-All supply is in circulation
Now the Tax Model that will be the bread and butter of this and will fuel SHARE Scarcity:
-During positive rebase when a SHARE holder goes to claim their rewards, 20% equivalent of SHARE value will be burned. This fee gets transferred to the farming contract to be farmed by USD holders and part of it gets sent to treasury to be redeemed during negative rebase.
-All sell transactions involving SHARE are taxed 5%. This tax goes to treasury and farming contract. No tax is implemented when buying SHARE. This provides more upward pressure on the price and less downward pressure
-Hefty 10% tax on USD holders who sell USD below peg. This tax is used to buy SHARE on market and is sent to the farming and treasury contracts
-Hefty tax on SHARE holders who sell their SHARE during negative rebase. This tax will always be greater than the current discount rate of SHARE redemption. So if discount is 5%, selling SHARE will be 6%. This tax is sent to farming and treasury contract
-5% tax on USD farmers when claiming their rewards. Tax is sent to farming and treasury contract
All tax rates can be changed by SHARE governance. These are just examples and numbers taken from CORE.
In theory this makes SHARE highly desirable from a DeFi perspective. We will no longer have to worry about SHARE dilution, and during positive rebase, users are incentivized to claim their pro rata distribution daily, using profits to buy back their portion of SHARE that was burned. This should push the price of SHARE up, and the higher the price, the more attractive it is to farmers and the more value created in the treasury for discounted SHARE redemption during negative rebase
I understand this is a lot of work on the development side and would be an entire relaunch of the protocol. However, I think a FOT model is the only model that makes sense with what DollarProtocol is trying to implement. It gives SHARE holders so much incentive in holding SHARE as there is a lot of buy pressure and little sell pressure baked into the protocol. I hope this idea is considered by the team as I feel like this is the type of innovation on top of CORE that will make a project gain market share, as there have been many CORE clones but they have flopped because they haven’t created any innovation. By adding an element of rebase via USD, this will attract many CORE fans and DeFi crowd in general