LOCKS

Governance & govLOCKS

LOCKS is an ERC20 token that will act as the governance token for Goldilocks DAO. LOCKS token holders who wish to participate in governance will wrap their LOCKS token into govLOCKS. A 1-1 wrapper contract that is used to vote on Goldilocks protocol proposals. All operations of the DAO will be determined democratically by govLOCKS token holders, via the DAO's governance contracts. As part of our partnership, ApDAO will hold a perpetual 5% governance power over Goldilocks DAO.

Staking & PRG

Goldilocks also includes a staking mechanism for all LOCKS tokens. Importantly, staking rewards are not paid in newly emitted LOCKS tokens (which would dilute the floor price). Rather, they are paid in a second token, PORRIDGE. The PORRIDGE token gives owners the right to buy LOCKS from the protocol at the floor price. So no matter what LOCKS market price is, if a user has one PORRIDGE token, they can use it to mint one LOCKS token through Goldiswap at floor price. Crucially, these staking rewards can never dilute the floor price of LOCKS.

Locked LOCKS

When a user stakes LOCKS, they can also borrow up to the full floor price of their staked LOCKS. For instance, if the user has 100 LOCKS staked and the floor price of a LOCKS token is 1 HONEY, then they can borrow 100 HONEY from the FSL. Their staked LOCKS are then locked and can’t be withdrawn or sold until the loan is fully repaid, although the user will still receive staking rewards for their locked LOCKS. The borrowed HONEY is still counted as part of the FSL for the purpose of calculating the market price because they would need to be repaid before the tokens that they are backing can be sold. Borrowing doesn’t dilute the floor price in any way.

Crucially, there is zero risk of liquidation with these loans. Users can borrow the floor price of their tokens, no more and no less. Since floor price can never decrease, there is never any need to liquidate users (compared to standard lending protocols where borrowing limits are determined by market price). If the floor price increases, the amount that users can borrow will increase proportionally.

All loans come with a one-time 3% origination fee, 100% of which is sent to the DAO treasury. After the origination, the loans are completely interest free for their duration.

LOCKSenomics

The initial supply of the LOCKS token is 190,000,000. Of this, 34,000,000 are team tokens and 156,000,000 are seed investor tokens.

(i) Team tokens are permanently staked and locked. The team can borrow against the floor price of their tokens at any time and receive PORRIDGE staking rewards, but they can never unstake or sell any of their LOCKS allocation.

(ii)The team will never sell or stir any PORRIDGE staking rewards, but may use them within the Berachain ecosystem, e.g. to provide liquidity, earn BGT rewards etc.

(iii) Seed investor tokens are staked and locked for three months from tge and then become unstakable linearly over a twelve month vesting schedule. Seed investors and team members will not be able to claim any staking rewards until three months from tge, when they will be able to claim all accrued staking rewards.

(iv) Seed investors are able to borrow the full floor price of their own tokens at any time, on the same terms as any other LOCKS holders. Of course, they need to fully repay the floor price of all tokens before selling them.

Apart from the initial supply, the LOCKS supply is entirely elastic because Goldiswap mints LOCKS on buys and burns LOCKS on sells. The rate of PORRIDGE emissions to LOCKS stakers is set by DAO governance, initialised at 0.25 PORRIDGE per staked LOCKS annually. There are also 180,000,000 PORRIDGE minted to the DAO treasury, whose usage will be determined by the DAO.