We would like to announce the upcoming rework of the SmartPad IDO system. We are going to launch SmartPad DAO, which will determine the IDO flow. PAD staking will also evolve to support the changes associated with the introduction of vPAD — a voting token of the DAO ecosystem.
The upcoming changes
Aurora is going to become the home network of operations for SmartPad. Uniswap and QuickSwap liquidity will be transferred to Aurora to establish a unified liquidity pool. This will substantially increase PAD liquidity on Aurora.
Staking on all platforms will also change. There will be one unified staking pool on Aurora, for participating in IDOs and DAO voting, more details on it later.
What about the staking pools on other chains? We will take snapshots of user balances and rewards on Ethereum and Polygon and stakers will be able to claim a corresponding amount of PAD tokens on Aurora. This will greatly reduce the cost of transferring your existing token balance, especially on Ethereum. And on Aurora, you can just unstake from the old pool and stake to the new one.
Following the rework of the staking system, non-claimed tokens from the presale will be burnt and removed from circulation. We will also release the updated tokenomics following the decrease in total supply.
Why are we introducing these changes?
- One of the key motivators for this decision was to combat the rising Ethereum fees and support our token holders.
- Another issue with the current structure is the fact that PAD liquidity was dispersed between multiple networks at the same time.
- The complexity of the current allocation system influenced the accessibility of SmartPad as a platform, and the barrier to entry was quite significant.
- The lack of staking lock negatively impacted the longevity of the ecosystem.
Launching SmartPad DAO
SmartPad DAO will determine the IDO allocations and participants will vote with vPAD tokens. vPAD is a non-transferable token gained by locking the aPAD (tokens received from staking) for some period of time. Lock duration will range from 1 week to a couple of years. The longer the aPADs are locked — the larger amount of vPAD you will get.
To give an example, a user locking 1 aPAD for 1 week will get 1 vPAD, while a user locking their aPAD for 3 months will gain 5 vPAD. Please keep in mind that numbers are purely theoretical and do not represent the final product.
New tier system and vPAD use case
Members of the SmartPad DAO will vote on allocating tokens between the tiers, each having a different allocation multiplier. The current strategy is to increase the number of tiers from 3 to 5. Requirements for getting into a tier will be fixed in USDT. Each tier will have a fixed percentage of total allocation:
- Tier 5 (highest): 20%
- Tier 4: 15 %
- Tier 3: 10%
- Tier 2: 5%
- Tier 1 (lowest): 1%
The remaining 49% will be decided by the DAO members, who will vote on allocating the remaining tokens towards a tier of their choice. Therefore, if many DAO participants belong to Tier 1, they can lock and vote with their tokens on increasing the allocation for the said tier.
vPAD token would also serve as registration for the IDO. If no users voted for a certain tier, unallocated tokens would be purchasable during the FCFS phase.
Each IDO would be a different DAO proposal so that participants can participate in multiple IDOs simultaneously. But the vote will be counted only once towards a single proposal (a single IDO)
Benefits to long-time stakers
Our long-time stakers will enjoy the extra benefits in the new tier system. They will gain a one-time multiplier to the amount of vPAD they get by locking aPAD. The size of the multiplier will depend on their previous staking duration before the snapshot is made. This means more voting power and potentially more allocation for the long-time stakers.
The multiplier will be applied once they confirm their wallet address on Aurora the first time they receive vPAD. This additional multiplier will be lost if the tokens are unstaked.
