LOCKS
LOCKS is an ERC20 token that will act as the governance token for Goldilocks DAO.
Only staked LOCKS holders have their voting rights for participating in governance.
Users can delegate their voting weight to another delegate
Delegation does not lock tokens but assigns voting weight to the chosen delegate
All operations of the DAO will be determined democratically by staked LOCKS token holders, via the DAO's governance contracts. As part of our partnership, ApDAO will hold a perpetual 5% governance power over Goldilocks DAO.
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 (this is called `stirring’). So no matter what LOCKS market price is, if a user has one PORRIDGE token, they can stir it to mint one LOCKS token through Goldiswap at floor price. Crucially, these staking rewards can never dilute the floor price of LOCKS.
Goldilocks DAO will provide liquidity for trading PORRIDGE on Kodiak (note that no sell tax is imposed on PORRIDGE trades).
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 Their staked LOCKS are then locked and can’t be withdrawn or sold until the loan is fully repaid, although the user will still receive staking rewards for their locked LOCKS.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 DAO controlled origination fee (initialised at 3%), 100% of which is sent to the DAO treasury. After the origination, the loans are completely interest free for their duration.
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. The initial market cap of LOCKS is 3.57 million HONEY. The team and seed investor tokens are subject to the following terms,
(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 on the same terms as other LOCKS holders, 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. as collateral, 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 any outstanding loans taken against their tokens before being able to unstake or sell them.
(v) Seed and team tokens are eligible for use in governance immediately upon the LOCKS token generation event.
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 0.4 PORRIDGE per staked LOCKS annually. There are also 250,000,000 PORRIDGE minted to the DAO treasury.
Of these 250,000,000 porridge,
(i) 32,726,000 will be distributed as liquidity incentives for Goldivaults via Boyco. These incentives will be paid by expiry of the Boyco markets on May 3rd 2025.
(ii) A further 16 million PORRIDGE have been committed to be used as bribes for liquidity incentives on Beradrome within the first 12 months after TGE. These bribes will be directed by the operating team unless and until the DAO makes explicit recommendations through governance.
(iii) 2 million PORRIDGE will be sent to the BULLAS treasury to be permanently held as full range LP on Kodiak, as part of a partnership between the projects.
(iv) 16 million PORRIDGE are reserved for seeding a PORRIDGE liquidity pool on Kodiak.
(v) 12 million PORRIDGE will be emitted as bonds and/or reward vault emissions for $LOCKS.
(vi) Any further emissions will be determined by DAO governance.
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