Sacred Token Announcement
We are excited to finally provide details to the community of the design of the soon-to-be-launched SACRED token.
A big thank you the community for your dedication as we have seen Sacred grow from an unknown project to having thousands of followers and contributors, who have shown support by testing UI, crafting policies and working on Sacred’s documents. Details on how our DAO will be structured will be released soon and SACRED is looking for those special people in the community who can become ambassadors and leaders in the DAO.
SACRED tokens will be airdropped to dedicated community members in appreciation for all their support. Details of the airdrop will be announced in the coming weeks.
Since its inception, Sacred design for the people and by the people, is a project that secures financial privacy while also generating yield. Tokens in our smart contract mixer will generate yield for the holder as tokens in the mixer will be securely routed to yield generation pools (i.e AAVEs).
Native Yield + SACRED = Privacy + Security + Wealth Accumulation
Our key differentiator to other mixers is that users of native yield pools will be incentivized to farm through Sacred, where they can earn what they were earning in the pool, plus SACRED incognito credits while attaining privacy.
Now that much of the work has progressed well and as we draw closer to our IDO launch date, it is time to reveal the details of Sacred’s tokenomics.
SACRED is an ERC20 token on Polygon with a fixed supply and controlled emission rate.
Sacred is not a fundraising device or investment opportunity.
SACRED holders will be able to stake it for governance which will work similarly to Curve Finance’s model. This means that users will be rewarded for staking SACRED over time
SACRED holders will be able to vote to lock their SACRED to receive veSACRED. The longer they lock SACRED for, the more veSACRED they receive. Vote locking enables users to vote in governance and also boost their SACRED rewards.
Note that vote locking is planned as a future release and will not be immediately available in version 1. However, this is an important feature to have as it will increase the SACRED’s scarcity and also the quality of the votes since longer locked tokens have higher voting power.
We want to attract as many deposits as possible into our contract as this will improve privacy.
To this end, we will be rewarding users of our platform with Incognito Credits which they can use to redeem for SACRED. On top of that, users of our platform will earn additional interest from the yield pool our contract uses while mixing the tokens. This means higher rewards and security than would be achieved in a traditional yield pool.
Users will be able to deposit wETH in specific denominations, starting with 0.5. Over time, we will open other pulls for higher denominations.
Protocol Owned Liquidity through Bonding
We want to ensure plenty of liquidity for SACRED. Low liquidity leads to stagnant trades and volatile swings that make price discovery difficult. We have target liquidity that will ensure low slippage trades for up to 5 figure orders. Although users will be rewarded for creating liquidity in select pools, we will exchange LP users hold for discounted SACRED. Over time, this will allow our protocol to own its own liquidity, and guarantee easy trading for users.
SACRED Buy Backs
Sacred’s smart contract will earn revenue from:
- Withdrawal fees
- Interest gained from Protocol Owned Liquidity
- Interest gained from tokens held in the native yield pool
Part of the revenue from these earnings will be used to buy back SACRED from the market on a monthly basis. This attaches a form of protocol derived GDP to the SACRED token and attaches a value to it beyond governance.
The cool thing about the buy backs is two fold. It also means that by buying back SACRED, our incognito reward system can run indefinitely, without increasing circulating tokens.
Note that as the value of SACRED increases with time, the quantity of Incognito Credits released will be reduced. We will still keep the IC incentives attractive to users. Even with a reduced emission, we expect the value of incentives to still be high.
We want to be careful how we manage token emissions and tokens in circulation, to make sure we are rewarding users well while also maintaining the lowest selling pressure possible.
SACRED emission rates
We did a study on several projects that predated Sacred — both similar and some very different ones. The work privacy projects have done before Sacred have provided learnings with regards to tokenomics and we appreciate the opportunity it’s provided to make changes.
To this end, we have some key principles we will follow pre and post-IDO to make sure SACRED is managed in the best way possible.
- IDO — we will make sure that everyone who wants to obtain SACRED will be able to do so at a fair price and that there are enough tokens to be purchased then. We will use a price discovery mechanism that will be announced at a later date. This cushions the price and reduces the chance of extreme volatility post-IDO.
- Pre-IDO investors, founders, and airdrops have a fair vesting schedule that will release slowly over time. This is to cushion selling pressure even as early investors and contributors are able to profit.
- We will carefully control the bonding mechanism so that our contract gains Protocol Owned Liquidity at a reasonable rate and from users who have a long term view of Sacred. This serves to secure liquidity while also managing sell pressure.
- We will try to build in more staking incentives in the future to help increase the scarcity of SACRED.
- We will research additional protocols and pools to interact with Sacred’s smart contract and increase the use of SACRED.
- Once finalized, all details of the emission rates will be made publicly available, before the IDO. This is to ensure anyone obtaining SACRED has a clear picture of its future and can make informed choices.
Sacred Finance’s growth
In conclusion, we want Sacred Finance to be as successful as possible and have a long growth trajectory, rewarding holders and most importantly users of our protocol. Over time, we will release more details on the plans we have for Sacred.