A plan for KogeCoin’s unclaimed tokens
We need to make an important decision for KogeCoin. First, some background. We envisioned KogeCoin to be a community token on Polygon, and launched by airdropping 96% of its supply to all users who’ve used QuickSwap before May 3. That airdrop will end around June 3, with any unclaimed tokens planned to be given to HODLers in a second airdrop.
Now, we have run into a conundrum. While our prices have risen significantly since launch and we have developed a novel auto-compounding defi utility on Polygon over at KogeFarm, over 90% of the tokens we allocated for the airdrop are still unclaimed. If we were to conduct the second airdrop as originally planned, it would lead to a sudden 10x inflation in circulating supply which will be devastating for the KogeCoin price and our current LP providers, who are not earning any rewards right now and are only doing it out of kindness to our community.
We have discussed this extensively in our Telegram chat, and have come up with two proposed solutions. They mostly involve distributing the remaining tokens over time through staking at KogeFarm rather than a sudden airdrop. Staking has increased in popularity significantly on Polygon, and doing it this way with a high APR may attract new investors and increase the price, thus benefiting HODLERs.
We are putting it up to a vote! Here are your three options.
Option 1:
2x HODLERs in a second airdrop, then contribute the remaining 20% to KogeCoin stakers and 70% to KogeCoin LP stakers over 1 year.
By our calculations at current claim rates, the initial APRs for the pools will then be:
KogeCoin stakers: 100%
KogeCoin LP stakers: 1575%
Pros: Allows us to keep our initial plan of a second airdrop, provides some incentive for holding and staking.
Cons: Doing both airdrop + staking will take up more development time, which will reduce our ability to develop more utility for KogeCoin. Lower APR may also not attract much new investment.
Option 2:
Contribute the remaining 50% of tokens to KogeCoin stakers and 50% of tokens to KogeCoin LP stakers over 1 year.
By our calculations at current claim rates, the initial APRs for the pools will then be:
KogeCoin stakers: 500%
KogeCoin LP stakers: 2250%
Pros: Provides a lot of incentives for buying, holding, and providing LP. Rewards existing HODLERs through potential price increases + staking rewards.
Cons: We will have changed the format of the second airdrop to staking rewards. Some might see this as breaking a promise, although it can be argued that KogeCoin staking is functionally the same as a second airdrop distributed over time instead of all at once. We will also give people at least 1 week of notice after June 3 so they can be prepared.
Option 3:
Keep original plan of airdropping all remaining tokens to HODLERs
Pros: consistency across messaging.
Cons: Dramatic (10x) increase in circulating supply which may crash the price and leave everyone with less value after the liquidity providers (LPs) pull out.
You can now go to our Telegram to vote: https://t.me/kogecoin
Some notes:
(1) If the community votes for Option 1 but the number of claimed tokens increases significantly from 10%, we may reduce the amount of tokens allocated for the second airdrop from 2x to a lower number (e.g. 1.5X) to keep the initial staking APRs reasonable.
(2) We will stop the deflationary, 2% transaction tax, mechanism of KogeCoin during either the second airdrop/farming phase to allow for easier trading and compounding. We will then start it back up once the airdrop/farming rewards are over, so that people can get back to earning KogeCoin in their wallets.
