Dracula Protocol minting in details

To secure a smooth launch, we are introducing a more structured and detailed DRC minting plan.

Instead of the initial proposal of 1000 DRC per block, we have developed a safer and more secure plan of the Dracula Token inflation for the first two weeks after the launch.

TVL — Total value locked in $.

This paper is a draft and may change to shape better Dracula protocol development.

Total mint

In the current vision total supply is set unlimited.

Total DRC minting will correspond with the following scheme for the first two weeks:

100 DRC is a minting lower bound until $5 mln TVL reached on Dracula Protocol pools. After that, there will be a linear growth till 500 DRC on $150 mln TVL.

Pool weights

Weights of pools in DRC distribution at the beginning of minting become

TVL on victim pool * ( APY on victim pool ) ^ 0.5

So, extremely high victim’s APY will be punished.

Weights of pools in DRC distribution after the automatic reward distribution launch:

(TVL on our pool ^ 0.8) * (TVL on victim pool ^ 0.2) * (APY on victim pool ^ 0.85)

So that distribution became fairer for higher APY targets, and the distribution is correlated with money impact on the ecosystem.

DRC/ETH pool has 30% of the total weight.

Rationale

In 2 weeks, we are planning to launch a smart-contract that will automatically follow the aforementioned math. Of course, if the community accepts it.

The reason for picking these exact initial distribution formulas is that DRC, as opposed to the usual yield farms, has real value collateralization. So it requires a dynamic inflation model. The previous model with stable 1000 DRC per block could damage growth due to big undercollaterization of initial DRC tokens.
*Minting and this article may change in the future as much as formulas.