# Bunchd DAO Token Economics
# Allocations
Total Tokens - 1_000_000_000
Total tokens which can be minted
# Seed Fundraising
Proposed Allocation - 75_000_000 - 7.5%
Total amount of tokens which be minted in the seed round for investors by the DAO in order to fund the initial development of the platform. Potential investors should be adamant about guiding the direction of the DAO as active voting members, and should be invested in the future of the creator economy.
# Developer Mint
Proposed Allocation - 125_000_000 - 12.5%
The developer mint will be used to attract, retain talent, and grow the team. Granted packages to individuals will follow a Restricted Stock Unit plan.
# Bunchd Governance Chest
Proposed Allocation - 100_000_000 - 10%
These tokens will be minted into the Bunchd Dao Governance Chest. Dao members will be able propose and vote on token distributions. For example - The Dao might want to onboard a large influential creator, and give them a stake in Bunchd. Or, the Dao might choose to distribute tokens in airdrops, fund creator initiatives, or other development efforts.
# Creator Community Leaders
Proposed Allocation - 100_000_000 - 10%
The Creator Community Leaders allocation will be disturbed as 1_000_000 token grants to dignified members of the creator community. The purpose of Bunchd is to be a creator owned platform, these grants are intended to establish strong creator voices early on in the DAO.
# Verified Creator Airdrop
Proposed Allocation - 20_000_000 - 2%
Verified Creator Airdrop tokens will be disturbed to existing creators to incentivize experimentation and drive platform adoption. These tokens will be given out in phases to established creators. The following phases are proposed:
| Phase | Grant Size | Target Users | Total |
|---|---|---|---|
| 1 | 50_000 | 50 | 2_500_000 |
| 2 | 25_000 | 100 | 2_500_000 |
| 3 | 10_000 | 100 | 1_000_000 |
| 4 | 10,000 | 500 | 5_000_000 |
| 5 | 10_000 | 700 | 7_000_000 |
| 6 | 1_000 | 2000 | 2_000_000 |
Total Creators - 3450
# Creator Adoption Bonus
Proposed Allocation - 130_000_000 - 13%
While the Verified Creator Airdrop will be used to drive initial viral creator adoption, its overall allocation is very small. Instead, we plan to give away the majority of community tokens to users through an adoption bonus mechanism. The more of their audience a creator brings to the platform the more they are rewarded.
# Totals
| Allocation | Amount | % |
|---|---|---|
| Seed Fundraising | 75_000_000 | 7.5% |
| Developer Mint | 125_000_000 | 12.5% |
| Bunchd Governance Chest | 100_000_000 | 10% |
| Creator Community Leaders | 100_000_000 | 10% |
| Verified Creator Airdrop | 20_000_000 | 2% |
| Creator Adoption Bonus | 130_000_000 | 13% |
| TOTALS | 550_000_000 | 57.5% |
| Remaining* | 450_000_000 | 45% |
Note : Remaining tokens will be minted to users through platform activity.
# Token Allocations by Holder Type
At Mint
Community Tokens - 350_000_000 | 35%
- Bunchd Governance Chest - 100_000_000
- Creator Community Leaders - 100_000_000
- Adoption Drivers
- Verified Creator Airdrop - 20_000_000
- Creator Adoption Bonus - 130_000_000
Investor / Dev Tokens - 200_000_000 | 20%
- Fundraising - 75_000_000
- Developer Mint - 125_000_000
Fully Diluted Allocations
Community Tokens - 80%
- Genesis Mint - 350_000_000 | 35%
- Future Mint from Platform Activity | 45%
Investor / Dev Tokens - 20%
- Fundraising - 75_000_000 | 7.5%
- Developer Mint - 125_000_000 | 12.5%
How are remaining tokens minted?
Remaining tokens will be minted directly to creators for bringing economic activity to Bunchd using a mechanism similar to the Creator Adoption Bonus.
What happens when all tokens are minted?
- The DAO can vote to enable an inflationary mechanism.
- Deflationary mechanisms can be added.
- The DAO might vote to commence a buyback using other stored assets.
# Vesting and Lockups
All Genesis Tokens will be subjected to vesting schedules and lockup periods in order to protect the interests of creators. Bunchd is a creator first platform, and tokens are meant to grant true ownership of the platform. The following vesting and lockup periods are intended inventive longterm thinking and ownership goals. Note, all locked tokens have voting rights.
| Allocation | Lockup | Vesting (Monthly Increments) |
|---|---|---|
| Seed | 1 Year | 6 Months |
| Developer Mint¹ | N/A (See Notes) | N/A (See Notes) |
| Team RSUs² | Varies | Varies (1-3 Years) |
| Creator Community Leaders | 3 Years | 1 Years |
| Verified Creator Airdrop | 1 Year | 6 Months |
| Creator Adoption Bonus | 1 Month | Immediate |
| Bunchd Governance Chest | 1 Year | Immediate |
¹ Developer Mint tokens have no lockup, but recipients are subjected to lockups described above. For instance, if the development team sold another 50_000_000 to fund team growth. Investors would be subjected to the “Seed” lockup / vesting rules.
² RSU Grants are crafted on a per-hire basis in order to remain competitive in the hiring market. For instance, a new competitive hire might receive a package with a 6 month lock, and 3 year vesting schedule.
Seed Vesting Example
- Adam purchases 10_000_000 Bunchd in a seed round August 1st, 2021. The seed round closes August 15th, 2021. Adam’s lockout period will end August 15, 2022 and tokens will begin to vest on the following schedule.
| Date | Amount as Bunchd Tokens |
|---|---|
| September 15, 2022 | 1_666_666 |
| October 15, 2022 | 1_666_666 |
| November 15, 2022 | 1_666_666 |
| December 15, 2022 | 1_666_666 |
| January 15, 2023 | 1_666_666 |
| February 15, 2023 | 1_666_670 |
# Fundraising
# Comps
| Comp Name | Seed Raised | Low (20%) | High (15%) | Notes |
|---|---|---|---|---|
| Patreon (2013) | $2,100,000.00 | $10,500,000.00 | $14,000,000.00 | In 2013, with unproven model. |
| Substack (2018) | $2,000,000 | $10,000,000.00 | $13,333,333 | Newsletters only. |
| Mediachain (2017) | $1,500,000 | $7,500,000.00 | $10,000,000 | Aquired by Spotify. |
| OpenSea (2018/2019) | $4,100,000 | $20,500,000.00 | $27,333,333 | |
| Rareible (2021) | $1,800,000 | $9,000,000.00 | $12,000,000 | NFT. https://coinmarketcap.com/currencies/rarible/ (opens new window) |
| FanVestor (2017) | $2,500,000.00 | $12,500,000.00 | $16,666,666.67 | Celebrity focused. |
| Capsule Social | $1,500,000.00 | $7,500,000.00 | $10,000,000.00 | Dfinity Social. |
| Canistore | $607,500 | N/A | $9,000,000 | Successful Seed Round https://canistore.io/lightpaper/ |
Note
Patreon actually valued 25MM in the seed phase - see pitchbook (opens new window)
Note
Substack actually valued at 70MM in seed phase, but sold a second seed round at 27MM - see pitchbook (opens new window)
The core of Bunchd is a tokenized protocol layer providing:
- Content Management
- Access Control
- Subscription Management
- Social Weights
- Protocol Governance
Our Patreon like product is built on top of this layer, as a way initially aggregate creator content in a familiar, proven, successful format.
# Bunchd Fundraising Targets
At the time of writing this proposal we only have plans for a single seed round, selling 75_000_000 or 7.5% of all tokens. Future fundraising rounds for development will voted on by Bunchd Dao, or will require the direct liquidation of the developer mint.
| Round | Target | Number of Tokens | Price Per Token | Circulating Market Cap | Fully Diluted Market Cap |
|---|---|---|---|---|---|
| Seed | $1,050,000 | 75_000_000 | $0.014 | $7,700,000 | $14,000,000 |