A High-level Overview of $BRRR Tokenomics
As Marc Andreesen of a16z famously proclaimed, “It’s time to build.” We say, “It’s time to Burrow.” In this spirit, we are announcing the mainnet launch of Burrow, the first lending protocol on NEAR native (next week!), and introducing the initial tokenomics for Burrow’s governance token, $BRRR.
Burrow’s governance token, $BRRR, is for you, the community! At least 50%-70% of the supply will be distributed to active Burrow users and community members.
Total Supply: 1,000,000,000 $BRRR
50% to the community
20% to the DAO treasury
20% to the core team
10% to strategic investors
Team and investor tokens will be locked for at least two years. For strategic investors, 50% of the tokens will unlock after December 2022, with a further 50% unlocking linearly until December 2023.
In the first three months after launching, up to 6% of the supply (60,000,000 $BRRR) will be distributed to the Burrow community.
$BRRR will be non-transferrable (i.e. non-withdrawable from the Burrow app) for the first 4 weeks, until the DAO votes to make them transferrable. This pre-mining period ensures that Burrow will be able to better align with early users and supporters.
15,000,000 $BRRR (1.5% of supply) will be earned by users as rewards for supplying and borrowing assets on Burrow.
xBRRR staking goes live! With boosted rewards! xBRRR is similar to the ve-token model, where users can stake their tokens in the protocol to earn further rewards and participate in governance through voting.
Starting in Month 2, users will be able to stake $BRRR tokens for a period of 1–12 months. Stakers will receive more xBRRR the longer they stake, which will enable them to merit higher APRs.
Additionally, xBRRR holders will receive boosted rewards for supplying and borrowing. These boosts are significant, and will enable users to earn more than 2–4x the rewards they would earn without holding xBRRR.
In the near future, xBRRR holders will be able to partake in DAO governance through voting, and will have a say in managing the DAO treasury, reserve funds, accrued fees, emissions, and more.
This is the extent of the initial tokenomics for $BRRR, and further details on the usage of the funds will be determined by the Burrow DAO, and ultimately, all xBRRR holders.
Get ready! The age of money markets is NEAR.