Since Wing launched near the end of last September, the first unlock for the Wing DAO Community Fund is due to take place this month.
A full description of the community fund unlocking process can be found in the Wing whitepaper:
2,000,000 (20%) : Wing DAO Community Fund
20% of the supply will go to a public custodian account with only governance rights and cannot be transferred out. After the Wing DAO launch, 500, 000 (5% of the total supply) will be transferred to Wing DAO community fund pool every six months. The usage of the community fund pool is determined by WING token holders through a proposal system. In principle, Wing DAO community funds will be used for development, marketing, audits, risk control, or emergency handling as needed.
500k WING from the community fund was burned according to WIP-08, which leaves 1.5m WING in the fund. This means that 375k WING (7.5% of the 5m WING total supply) is unlocked this month.
The Ontology Foundation has been bootstrapping Wing’s development from the get-go. However, for Wing to grow and recruit more talent, it will need to start to utilize its own community treasury for such a purpose. As such, we propose to set aside a portion of the community fund for a team token allocation.
Token allocations for teams of similar DeFi projects
You can look at this great analysis from the Yearn community about similar team token allocations of other DeFi projects.
Projects such as Uniswap, Aave, Synthetix, Compound, 1inch, Curve, and Balancer hold anywhere from $300 million-$2.13 billion in tokens aside for [contributors], with the average being between $500-600 million. This is generally 20-30% of the total token allocation. Newer projects such as SushiSwap, Badger, CREAM, Harvest, and Cover vary more between teams, but allocate between 10-25% of token supply to their teams and early contributors.
Based on what has worked for these other projects, we propose the following:
Allocate 500k WING (10% of WING’s total supply) to vested team token allocations.
Out of the 1.5m WING in the community treasury, allocate 1/3rd (500k WING) to vesting token allocations in order to continue funding Wing development.
This would represent 10% of the 5m WING total supply, which is in accordance with team token allocations of similar DeFi projects.
Since only 375k WING of the community fund is unlocked every six months, this would mean that 125k WING (⅓ of unlock) is allocated for the team token allocation per unlock.
The 125k WING per unlock will be transferred to an escrow wallet.
The Wing team will be in charge of finalizing compensation packages and vesting schedules for the Wing team and hiring additional employees for Wing’s continued growth.
We hope you’ll see the necessity of this proposal and it’s urgency for all the exciting initiatives Wing has in store.