What percentage of $AQUA tokens should go to the Blockzero Labs Index? #XIOfeedback

Please provide your thoughts on two specific questions:

  1. Should the total supply be proportionally increased or reduced before the distribution starts?
  2. How many AQUA tokens should be put into the Blockzero Index Fund?
  3. [BONUS] What information would you want to see in the upcoming AquaFi Stats page?

1. Total Supply

Should the total supply be proportionally increased or reduced before the distribution starts?

This question is about whether you believe the total supply should be increased or reduced. Here are some considerations:

  • The higher the total supply, the lower the initial price per token. The lower the supply, the higher the initial price per token.
  • The way people would feel if they saw their earned Aqua tokens increased or decreased before distribution.
  • The estimates currently show that the total AQUA earned from snapshots by the end of March will be just under 700 million and by the end of the year will be under 800 million. The total supply would therefore be around these numbers not including AQUA going to the index fund and/or Aqua being used for marketing purposes (eg AquaFi Protocol | Marketing Initiative Proposal #XIOfeedback).
  • This is what the distribution would look like for someone holding 25,000 XIO in the XLP from January through to December if we do not change the total supply, if we divide the total supply by 100 and if we multiply the total supply by 100.
Month XLP Holdings Aqua Earnings (no change) Aqua Earnings (/100) Aqua Earnings (*100)
Jan 25,000 750,000 7,500 75,000,000
Feb 25,000 375,000 3,750 37,500,000
Mar 25,000 187,500 1,875 18,750,000
Apr 25,000 93,750 938 9,375,000
May 25,000 46,875 469 4,687,500
June 25,000 23,438 234 2,343,750
July 25,000 11,719 117 1,171,875
Aug 25,000 5,859 59 585,938
Sep 25,000 2,930 29 292,969
Oct 25,000 1,465 15 146,484
Nov 25,000 732 7 73,242
Dec 25,000 366 4 36,621
1,499,634 14,996 149,963,379

2. Index Fund

How many AQUA tokens should be put into the Blockzero Index Fund?

Around mid-December of 2020 Dash posted a video explaining his proposal for the index fund on YouTube and the Social Forum.

The vote on snapshot.page was met with a resounding “Yes” with over 5.2 million XIO tokens voting “Yes” and less than 20,000 XIO tokens voting “No”.

Today we are asking what number of AQUA tokens you believe should be put into the Index fund when Aqua launches. Some important considerations:

  • Tokens in the index fund can only be redeemed by burning a proportional % of XIO tokens - eg to obtain 10% of all the tokens in the index fund, 10% of all XIO tokens must be burned.
  • A higher % of tokens in the Index fund means increasing the total supply of Aqua
  • The more tokens in the Index fund, the more financial incentive for Blockzero citizens to follow and actively participate in future projects.

What percentage of the AQUA total supply should be put into the Index fund? This number can range from anywhere between 10% to 90%.

[BONUS] Aquastats Metrics

What information would you want to see in the upcoming AquaFi Stats page?

As someone who is looking to use the protocol, what key metrics or statistics would you want to see about the AquaFi protocol? Some metrics could include:

  1. Total Value Locked
  2. Total Fees Generated
  3. Current Aqua Price

You can find more examples on the Flashstats page located here: https://stats.flashstake.io/

13 Likes

i think the real question is: what percentage of our index has to be composed by aqua…

and btw: when is it going to start the blockzero index? do we have any eta on this?

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EDIT: I realized my phrasing isn’t very clear so I will edit my original post to make it easier to understan my concept:

The Defipulse Index (made with Set protocol) has a variable rate of each token in the INDEX according to the following:

The INDEX utilizes a capitalization weighted INDEX where the value weight is based off of a DeFi projects market cap. The price per token and circulating supply were taken on September 8th, 2020 from CoinGecko. Then, the price per token was multiplied by the circulating supply to determine the circulating market cap. Each position is weighted by its relative circulating market cap to other positions in the INDEX.

In the DefiPulse INDEX they use a range of different Defi tokens. For the BlockZero INDEX we will use BlockZero tokens (FLASH, XIO, AQUA, CLOVER etc).

To put a soft limit on the amount of tokens that need to be used in total for the INDEX, I propose that we hardcap the amount of total INDEX tokens that can be produced. The tokens that are contained within (FLASH, XIO, AQUA, CLOVER etc) will be weighted similar to how Defipulse are weighting them (explained above) with obviously any extra rules that we see as logical.

With AQUA tokens, a liquidity provider program can be setup, where AQUA tokens are “mined” in exchange for AQUA/ETH and AQUA/WETH liquidity on Uniswap. Part of the “mined” AQUA goes to the LP for a reward and the other part of this “mined” AQUA goes towards the INDEX fund. Depending on the amount that is “mined” for the INDEX fund, the LP also gets a percentage of INDEX tokens. This can be
setup with a halving schedule over time, so that the rewards gradually get less and less.

In this way, the only tokens that are set aside for the INDEX fund are those that are produced by some “work” which in this case is liquidity providing.

Having a hard cap on the amount of actual INDEX tokens there can be will help drive the value and rarity of this token even more.

Hopefully this makes sense.

I think 5% is a minimum but 10% might start people burning xio before the next token release. Will be interesting watching arbitrage burn tokens and drag the minimum price of xio ever upwards.

4 Likes

I would vote for /100 because yea it doesnt really make any point of having quadrillion tokens where people cant even count that many. Also it brings better in life value if the supply is lower so definitely /100. From my perspective the golden supply is up to max 100mil, the fewer the better.


If you mean like the procentage of Total Aqua supply that will be minted by citizens?
It would be good like 10-40% of total Aqua minted plus the initial supply being minted.

For example 10milion Aqua being minted with 20% for Index fund the total supply would then be 12milion. In total it becomes like 16.66% of all token supply. Could work with any other procentage.

I would also not be burning XIO, it is true that burning XIO tokens increases value but its still the core of every new project so it would be good to keep it around for a little bit longer.


  • Market cap
  • 24 Volume
  • Price
  • Aqua per XIO
  • Fees generated
  • Claimed/Unclaimed tokens
  • Total Locked/Staked

I believe you have quite of experience with that from previous tokens so i believe you will make a wise decision.

Keep it up.

4 Likes

Personally I would like to see it on the higher end, closer to 20%. I’d like to see blockzero more tightly tied to its underlying assets. It fits the underlying philosophy of blockzero being the foundation with projects emerging from it.

Also, anyone who gets aqua airdropped will have to be holding XIO. A higher percentage going to the index is a form of “indirect” airdrop to those holders, as those tokens contribute to the underlying value of XIO. It reinforces the value of holding XIO rather than waiting for the airdrop and accumulating then.

I would also like to see mechanisms where a small percentage of aqua (and flash) contribute to the index fund to continue growing it. These type of feedback between the projects I think will make them all stronger.

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I like the general idea of having a system where project tokens enter the index fund over time. Instead of making it based on marketcap, however, I rather it be based on operational measures. For example, a small percent of fees would go to the index fund. This way success of the protocol is not tied to marketcap (which is largely outside of anyone’s control) but instead tied to utilization and adoption.

The more people using aqua and flash, the more tokens enter the blockzero index fund. Thus incentives are aligned to increase adoption across the board.

1 Like

Looks like we should probably figure out upfront matching vs aqua matched when minted from protocol usage.

Also should it all go to index or some to foundation and some to index, or are they the “same”. Because of operational expenses vs tokens intended for index fund XIO token backing.

2 Likes

This is such a difficult question, because the index fund is only relevant if there is a lot of value/money in it, because then it will keep the floor price of XIO high.
Now we have this new defi accelerator, which is awesome and gives money into the index fund.
So my answer depends on the success of the defi accelerator. If it is successful then we get a lot of tokens inside and the floor price will be high. Then we don’t need to put that much aqua into it. Therefor there is lower inflation and therefor higher immediate reward for the XIO holders.
On the other hand if the Defi accelerator flops and we get nobody. Then the only way to make the index fund successful is to give a lot of AQua so that AQUA can sustain it.
So personally I would much rather vote on this in a month or two, when we can measure the success of the defi accelerator and make more educated decision.

If I had to vote now. I would say 20% maybe more. While I don’t like diluting the aqua supply, if we want the index fund to be a success it needs to have a lot of money in it.

I also like some of the ideas mentioned, where we would put AQUA into the fund overtime. It is always good to be able to increase the amount in the index fund with the usage of the tokens in it.

1 Like

original post has been updated

To answer your first question I would divide the total supply by a 100.
Let’s say aqua at current supply would cost 0,2$ (arbitrary number I picked based on nothing XD) well if we divide the supply by 100 it would be 2$, if we multiply it by 100 it would be 0,002$ per token.
I prefer less tokens with higher price per token. I think it will just look better.

2 Likes

I recall the total supply calculations done by some XIO citizens on the telegram channels would be around 700M tokens. I think this number (or even, let’s be conservative, half of it) is extremely big. It would make the token to have a very low initial value which is difficult to comprehend and psychologically negative. E.g. for a 7M marketcap is 0.01 dollars. I would divide this for, at least, a factor of 10, but no more than 100.

I am not sure people would feel bad seeing their Aqua tokens decreased. I can imagine some people with less logical minds will complain, but on the long run I think it is for the better.

This should be a big amount to strengthen the fund and keep the tokenomics of BlockZero and $XIO strong. I am an advocate of XIO being the main path to valuate the value created by BZ. I would certainly allocate at least 20%, if not more, for the fund. It might hurt a bit Aqua on the short-term but make all the whole BlockZero ecosystem better on the long term. Burning XIO tokens make them scarcer, much more valuable and seeked by people interested in the projects developed by BZ.

Aside from the three stats mentioned on the examples, I would add:

  1. Current Circulating Supply
  2. Current Total Supply
  3. Current Locked Supply
  4. Current Tokens in the Fund
  5. Estimated Tokens to be claimable per day (total)
    The five in Aqua and dollar equivalent
  6. Current APY, or some other % metric that shows how much value you can obtain
  7. The different LPs that are using Aqua tokens
  8. The different DEXes (like Uniswap LPs 40%, 1inch LPs 30%, etc.)
  9. XIO per AQUA
2 Likes
  1. I dont really care, marcetcap will be the same at the end. So maybe devided by 10? :stuck_out_tongue: No honestly, why dont just leave it?

  2. I think about 20%. But also it would depend on the ratio with $FLASH and $XIO. We didn’t get much news about the index fund yet. Would be great to have an update on it first.

B. for sure TVL and total market cap, total generated Uniswap fees and total generated Aqua Bonus payout. Then all the standard metrics like you also have on flashstake available for the individual pools too.

1 Like

i vote to slash it by /100. the underlying value won’t change, and we will get the same amount of “value”. The market seems to favor the small supply coins, or at least that is what the trend has been lately. Most of the successful projects have even less than 1 Million total token!

i think that 10% of total supply is a safe bet. this number is still A LOT of the total supply of AQUA, but still, not too high to make the index the main focus of the ecosystem. Maybe, 15% could be better, but in this case ,the XIO token would have the most benefit.

well, i would love to see a preview of the UI of the dapp ! And i hope to see the complete info on the token, just liek the Flahs dapp stats. It is important that the stats are live and updating automatically every 5 minutes

1 Like

1. Total Supply

I think 800 million tokens will be fine, the psychological goal number of $1 would be reached at $800 million market cap, meanwhile at a low cap of $10 million it would be $0.0125 which is a very good cheap value.

2. Index Fund

Maybe around 1/5 of the supply, so 20%.

[BONUS] Aquastats Metrics

  • How much staked (if it’s developed);
  • TVL;
  • APY;
3 Likes
  1. I believe the total supply should be remain as is. I am personally grateful to be apart of this project and whether or not my aqua tokens increase or decrease before distribution is not much big of a concern as long as they will be the same value (meaning if decrease 1 aqua =1usd and if increase 100aqua =1usd). I also believe that instead of going ahead and changing it which may push the team to do more work before the launch which may also impact the launch date we should let the distribution remain as is.

  2. I believe the amount that should go towards the index fund should be about 20% seeing that this will not increase the total supply by alot seeing that it might probably already capped at 1,000,000,000.

  3. I would like to see Total value, Aqua Price, Total Fees, Circulating supply, Different aqua pools and there stats, Amount locked up, and it could be a bit more personal to show how many a particular address has locked up, fees earned and all the pools being participated in.

P.S. You guys are doing a great job (y)

1 Like

For the first question i agree with most of the people that comment before me, i would rather have a smaller total circulation than a token that i have to count the 00 before the comma so a /10 or a /100 would work for me

For the index fund i would say between 10 and 20%, more than that would cripple Aqua, less woudn’t be relevant enough for the Index fund, so averaging, i’m going with 15%

For the KPI’s, price, tvl, circulating supply, marketcap, volume, locked amount would give us a nice indication of how the token and the protocol itself are doing

1 Like

I think the total supply should be left as is, neither increased nor decreased before distribution starts.

I’d say 5-10% of AQUA tokens should be put into the Blockzero Index Fund.

In addition to the TVL, Total Fees, Price, I’d add top LP token metrics - a ranking of LP tokens by value contained in the Aqua protocol.

1 Like
  1. Should the total supply be proportionally increased or reduced before the distribution starts?
    I think it would be fine to leave it as is. That way no-one will be concerned or get upset that they are getting less tokens than before, and not sure there needs to be a larger amount of AQUA (the decimals should hopefully cover this need). Also, there are already quite a few tokens with over 1 Billion tokens in the total supply.

  2. How many AQUA tokens should be put into the Blockzero Index Fund?
    I would recommend between 10%-20%, but leaning more towards 20%. This would give a solid portion of the project to XIO holders and tie the projects closer together, without diluting the supply of the token by 2x or more.

  3. [BONUS] What information would you want to see in the upcoming AquaFi Stats page?
    In addition to what is listed, would be great to know what LPs AQUA is being used on, as well as the $ amount each of these LPs AQUA is farming. This would show the most popular ones. Also understanding the proportion of those that are farming with AQUA, that also have put AQUA into a LP. This would help show the level of investment in the overall project, rather than just the farm.

  4. Additional Question:
    When considering adding new project tokens into the index fund that have an inflationary or deflationary function, should the amount of the token in the index fund be pegged to a % of the total supply? e.g. in the token naturally inflates by 50% each year, should 10% of that token go into the index fund to maintain parity with 20% entering the fund?

2 Likes

I don’t know about that. Often, the psychological goal is 10$, or any round number for that matter. People like to see big numbers on their tokens, and I think that 1 token at 1000$ is better than 1000 tokens at 1$. People feel richer,even though it is the same amount of value.

I see a lot of people asking for 20% lock up in the index… But having 20% of the supply away from the market (even though it Could be put back in to the market with xio) means a very illiquid AQUA guys… And that translate to a lot of volatility, and I don’t know if thst is a good thing. We have bigger upside potential, but also bigger falling potential

2 Likes