Project Tokens
This is an early draft which will likely change
One of the main goals of Underfitted is to build and launch a series of projects. The goal is for each project to be as independent as possible and self-governed. Therefore, each project will have its own project token.
Funding
The initial funding for a project will be provided by the Underfitted treasury in fiat or ETH depending on the needs of the project.
The goal is that projects start earning money and cover their own costs as soon as possible in order to become independent. However, the community may decide to fund projects that will not generate income for a long time or even not at all.
Token Supply and Distribution
Project tokens will be inflationary. For every season, the community will decide how many tokens will be minted. The tokens will be distributed in the following manner:
10% to the Underfitted community treasury
20% to the project treasury
70% to the people that worked in the season
Minting new tokens every season means that the value of one token will decrease over time. The goal is to reward people that contribute more on a regular basis more than people that participated early but didn't do anything after that.
Distribution of Tokens to Contributors
After a season ends, 70% of the tokens need to be distributed to the people that did the work. A project may predefine the allocation to different teams (developers, marketing, content, etc.).
Every team needs to decide by themselves how to distribute the tokens between its members. Tools like Coordinape may be used to facilitate the decision.
Distribution of Proceeds
All the money generated by the project from customers, ads, subscriptions etc. will be distributed proportionally to the holders of the project token.
This will allow both the Underfitted treasury as well as the project treasury to have a constant income stream.
Liquidity Program
Similarly to the community token, every project can start a liquidity program for their token in order to allow members to buy or sell their tokens on a decentralized exchange (DEX).
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