DeGov.AI TGE and RING Burndrop Program Discussion

[boundless-forest]

It has been several months since the DeGov.AI TGE has been proposed and discussed within the Ring Ecosystem community. See the original discussion here: https://github.com/orgs/ringecosystem/discussions/24. During this time, we have done extensive research about the TGE process, approaches, and best practices. Finally, we have come up with a proposal that we believe is fair and beneficial for both the DeGov.AI project and the Ring Ecosystem community.

First, we proposed to conduct the TGE as a Genesis Launch on the Virtuals platform. You can find more information about the genesis launch here: https://whitepaper.virtuals.io/about-virtuals/tokenization-platform/genesis-launch. The genesis launch program has successfully helped many projects to raise funds and gain exposure in the crypto space. We believe that this approach will provide a solid foundation for the DeGov.AI project to grow and thrive compared to launching by ourselves. I have attached the material that we have prepared for the DeGov.AI Genesis Launch for your reference, see the attached PDF file.

Second, it's time to talk about the tokennomics design, you can check the allocations in the Tokenomics section of the attached PDF file. The total supply of DGV is 1B tokens, this is a fixed supply forced by the Virtuals platform. The Airdrop allocation 2%, the Public sale allocation 7% and the Liquidity allocation 6% are all fixed by the Virtuals platform. The remaining 75% of the tokens can be allocated according to our preference. One of the allocations called "RINGDAO - RING Burndrop Program", which is 25% of the total supply, is designed to reward for the RingDAO community support and contribution to the DeGov.AI project. The core idea of this program is allowing the RING holders to burn their RING tokens in exchange for DGV tokens at a specified ratio that explain clearly in the "Additional Details" section of the attached PDF file. Hopefully, this program will create a win-win situation for both the DeGov.AI project and the RingDAO community.

We would like to hear your thoughts and feedback on this proposal. Please feel free to share your opinions, suggestions, or concerns. We are open to any ideas that can help us improve the TGE process and make it more successful.

Update:

1. Sorry for the confusion about the time. In the pdf, there are some times, the burndrop time, the TGE launch time and the token allocation unlock approaches. Both of them in the pdf is just a mock time for generating the pdf. The real time is not decided yet. So please ignore the time in the pdf.

DeGov-TGE-v1.pdf

[SasoLithops]

Hi Bear!

I have a couple of questions and comnents.

1. Will there be staking available?

2. Who will receive 2% of airdrop? What are requirements?

3. Why is lineary vesting for treasury and marketing?

4. Where will liquidity be and with which pair and on what chain? Do you plan to put it on DEX or CEX? Or both?

Answer to questions 2. and 4. will help in deciding/discussing percentage value.

5. I asked ChatGPT to help me phrase my questions and views.Here is what I would like to know before further discussion:

Factors to Consider When Designing Tokenomics:

Utility: What will the token be used for? Is it a utility token for your platform? A governance token? A staking reward? This determines how tokens should be allocated and distributed.

Community Incentives: How will the community be involved? Will there be rewards for active participation? What type of rewards will keep the community engaged?

Economic Sustainability: How will the tokenomics hold up in the long term? Are the incentives aligned with the project's growth? Can the model sustain itself as the user base grows?

[boundless-forest]

Why is lineary vesting for treasury and marketing?

There are only two options for the unlock schedule, either linear or immediate. Most commonly, the unlock schedule is linear, meaning that the tokens will be unlocked gradually over a period of time. If we choose immediate, all tokens will be unlocked at once. This is a bad choice for building trust with potential investors, as they may fear a sudden sell-off of tokens.

[boundless-forest]

Who will receive 2% of airdrop? What are requirements?

The airdrop is for the veVIRTUAL holders on the Virtuals platform. To get veVIRTUAL, you need to stake your $VIRTUAL tokens. See https://whitepaper.virtuals.io/info-hub/usdvirtual/staking.

[boundless-forest]

Where will liquidity be and with which pair and on what chain? Do you plan to put it on DEX or CEX? Or both?

6% of the total supply is allocated to the liquidity pool. This will be used to create a DGV/VIRTUAL pair on either VirtualSwap or Uniswap on the Base chain.

[boundless-forest]

Will there be staking available?

It is. See the screenshot below, once TGE succeeds, the DGV staking will be available. Stake DGV to earn the Virgen Points.

[Laki389]

@boundless-forest

My concern/feedback is:

• I have read several times that DeGov is 100% owned by RingDAO (since it participated in its funding).
  Due to the above, I am unfamiliar with the concept of burning tokens for something that is already owned.

My suggestion is that RingDAO should receive a FREE, fair allocation according to the contribution to DeGov.

According to the Virtuals Protocol Whitepaper, this is the tokenomics of every new project after TGE.
https://whitepaper.virtuals.io/about-virtuals/tokenization-platform/genesis-launch/genesis-allocation-mechanics

The DeGov team, after TGE, will own 85% of all tokens + an unknown amount of $Virtual obtained from the sale of 7% tokens in the presale.
I also read that there is a 1% trading fee in the Virtuals Protocol. Of the total trading fee collected, 70% goes to the Agent creator's wallet i.e. the DeGov team.
https://whitepaper.virtuals.io/about-virtuals/tokenization-platform

Since the details of the DeGov TGE need to be approved by RingDAO,
since the governance token in RingDAO is RING,
since it is in the best interest of RING holders to ensure the well-being of RING,
it may be simplest and best,
for DeGov to remain under RingDAO.

• Feedback on the TGE date.
  Is there any particular reason why the first day of 2026 was chosen?

The date may not be the best choice because it is usually a time dedicated to family, friends, some will be too drunk to participate :)

January is also a month where in the last cycle it was already 2-3 months in a bear market.

I don't know how much time allows, although November would probably be the best month for TGE, but that is not possible,
some date in December IMHO would be a better choice because 2026 is already associated with a bear market,
this time it may be different,
but according to the experience of the past 16 years,
for now,
2026 should be bearish...

[Laki389]

Besides, those who do not have RING but want to participate in this program will need to buy RING and burn.

Those who participate in the program and burned their RING, but still want to keep RING will have the desire to buy more RING.

@hackfisher

My feedback or (rhetorical) question is, isn't it better for their interest for them to participate directly in the Pre-Sale or in the Liquidity Pool Creation?
Correct me if I'm wrong, but in the Pre-Sale and Liquidity Pool Creation they will immediately receive their DGV.
But from what I understood from the introductory post of this discussion, the Ring Burndrop event will last 2 months.
Also, this allocation will be from 85% Dev / Treasury / Marketing.
From what I managed to understand, there will be vesting with this allocation.
Their choice would be between immediately disposing of their DGV or receiving (several months) locked DGV.

[2xJDubs]

My suggestion is that RingDAO should receive a FREE, fair allocation according to the contribution to DeGov.

Laki are you saying here that RingDAO, the treasury, should receive the DeGov tokens or that all holders of RING should receive these for free?

The way I understand it is there will be an allocation of the 85% to RingDAO itself, specifically the 25%, that will then be used for the RingDrop Burn event to distribute more out to community members that would like to participate. What is not swapped here would stay with RingDAO. I also assume that RingDAO could vote to have a larger allocation with some of the DeGov tokens not being sold at all but held by RingDAO. I could be wrong here but this is how I interpreted things.

[boundless-forest]

What I want to emphasize is that IMO there is no need for a RING Burndrop event. Why? Because the RingDAO Ecosystem Fund has already given grants and it makes sense for RingDAO to get a FREE allocation. Without additional burning of RING. 👍

I want to emphasize a detail that may be easily overlooked. If the total amount of RING burned is less than 200M, the remaining DGV will go to the RingDAO treasury. The current tokenomics already account for this scenario. This approach opens another path for RING holders to acquire DGV. No one knows the future price of DGV, but if it is higher than RING's price, it will be a win-win situation for RING holders.

Indeed, the above is about the RingDAO treasury to get free DGV. But for the RING holders, they can also get DGV by burning RING. This is another way to acquire DGV compared to take part in the launch activity on the Virtuals platform and don't need to actively participate on the Virtuals platform.

[boundless-forest]

Correct me if I'm wrong, but in the Pre-Sale and Liquidity Pool Creation they will immediately receive their DGV.

There are two different scenarios for users. When you acquire DGV from the pre-sale on the Virtuals platform, there is a 10-day penalty period during which you cannot transfer or sell the DGV. After this period, you can transfer or sell the DGV freely. In contrast, when you get DGV from a liquidity pool, there is no penalty period, and you can transfer or sell it freely at the market price. The price of DGV after launch is unknown; it may be higher or lower than the burn-drop price.

But from what I understood from the introductory post of this discussion, the Ring Burndrop event will last 2 months.

2 months is not the final time, it just a mock or recommendation for now to illustrate the idea

From what I managed to understand, there will be vesting with this allocation. Their choice would be between immediately disposing of their DGV or receiving (several months) locked DGV.

Nice catch. The 25% allocation will release once the DGV token launch successfully happens, it will go to the mutisig wallet controlled by the RingDAO team. But for the participants of burn-drop, they will receive their DGV tokens after the burn-drop time.

[Laki389]

Laki are you saying here that RingDAO, the treasury, should receive the DeGov tokens or that all holders of RING should receive these for free?

The way I understand it is there will be an allocation of the 85% to RingDAO itself, specifically the 25%, that will then be used for the RingDrop Burn event to distribute more out to community members that would like to participate. What is not swapped here would stay with RingDAO. I also assume that RingDAO could vote to have a larger allocation with some of the DeGov tokens not being sold at all but held by RingDAO. I could be wrong here but this is how I interpreted things.

@2xJDubs

Jesse, sorry for the late reply.

As I already shared above, from the Virtuals website, this is the following tokenomics structure of all new projects that launch there (Bear, you, me, anyone who wants to launch a new project there does not independently determine the tokenomics, they are strictly the same and determined by Virtuals itself):

https://whitepaper.virtuals.io/builders-hub/genesis-launch/genesis-allocation-mechanics

So, in the case of DeGov, 85% of all tokens are for the DeGov team.
According to the introductory discussion, the DeGov team wants to allocate 25% for the RING Burndrop program.

To answer your question, by RingDAO I meant RingDAO Treasury initially,
then as in the case of the PINK meme, creative solutions can be found,
obviously,
RING is on multiple blockchains.
For example, some can stay in RingDAO Treasury, the rest for those who stake and for those with locked RING.
I gave an example.

[SasoLithops]

I find this tokenomics model to be the best for product selling DAOs or projects:

https://uprock.com/tokenomics

Especialy the value to token holders. Having just a governance and staking token is a red flag for investirs nowadays. While bringing real revenue is a huge plus when searching for projects imho.

Also transparency:

And how I see vesting. With locks first for 18-24 months and then vesting. Over at least 4-5 years. This gives trust that team members will not abandon it after 1 year when all tokens in circulation. Also plan needs to be good how team will be funded in future.

[boundless-forest]

I'm not sure that I got your point. You mean the tokennomics display(the page) of the Uprock is worth to consider for us? Or you mean the tokennomics distribution(the model) of the Uprock is worth to consider for us? Need more explanation about your point.

[2xJDubs]

After the roundtable Friday I do not have as many questions. I understand Laki's position that we need to make sure there is some allocation for the benefit of RingDAO alone. Maybe of the RingDAO can receive a base 5% of the DeGov tokens and the remaining tokens from the burn drop if there are any. This way RingDAO itself will benefit with an allocation as right now this is not guaranteed to happen in the current structure.

Will there be a limit in the burndrop per address? I could see having one as beneficial but also the idea is to burning more RING in circulation also benefits RING holders by reducing overall supply.

[boundless-forest]

understand Laki's position that we need to make sure there is some allocation for the benefit of RingDAO alone.

No matter in which scenario, the RingDAO treasury will benefit from the DeGov launch. If the total amount of RING burned is less than 200M, the remaining DGV will go to the RingDAO treasury. If the total amount of RING burned is more than 200M, that means the overall supply of RING has decreased, the existing RING holders and treasury will benefit from it. That's my understanding.

Will there be a limit in the burndrop per address?

No such limit for now. Just has a limit for the overall burned target, which is 200M RING.

[nblogist]

Appreciate @boundless-forest 's clarification on the 200M cap - at least RingDAO gets leftover DGV if participation is low. That's better than I initially thought.

But I'm still concerned about a few things:

Revenue model for DGV holders

@SasoLithops mentioned this and I think it's the biggest gap. You mentioned the 1% trading fee where 70% goes to the DeGov team per Virtuals' model. But what do DGV holders get besides staking points and governance? In 2025 people want to see how tokens capture actual value from the protocol. Even a small % of fees going to buybacks or staking rewards would make this way more attractive.

Whale concentration on the burndrop

No per-address limit means big RING holders could easily take 50%+ of the 25% allocation. I get that burning benefits everyone through scarcity, but it would be good to have some mechanism so smaller holders can meaningfully participate too.

RingDAO base allocation

The 200M cap is clever but it still makes RingDAO's compensation dependent on individual holder decisions. @Laki389 has a point about fair allocation for grants given. What about giving RingDAO a guaranteed 5-10% base for its investment, with the remaining 15-20% going to burndrop? This way both the treasury and community benefit regardless of participation rates.

Overall I think this has potential but needs a clearer value capture mechanism for DGV holders and some safeguards on the burndrop distribution.

[boundless-forest]

What about giving RingDAO a guaranteed 5-10% base for its investment, with the remaining 15-20% going to burndrop? This way both the treasury and community benefit regardless of participation rates.

Need more discussion. I'm not sure which one is better now.

[passionnn]

If you’re interested in possible future DeGov.AI Genesis Launch activities, it’s a good idea to get familiar with how the Virtuals points system works.

You may need to prepare some $VIRTUAL tokens and start earning points in advance to stay ready for future participation opportunities.

Here’s a simple step-by-step guide that walks you through how to earn points, hope it helps. https://docs.google.com/document/d/1tl5l5oSFAiL3W-PWu0KwU1Ox0zRWypcX6grs-xiuOQw/edit?usp=sharing