Tokenomics & Governance

AquaBera’s tokenomics are powered by a Dynamic Full Float (DFF) model, designed to avoid the pitfalls of low-float, high-FDV launches. By placing all $AQUA tokens into protocol-owned liquidity at launch and employing a companion token, $poAQUA, AquaBera seeks to create a sustainable, equitable ecosystem deeply integrated with Berachain’s Proof-of-Liquidity (PoL).

1. Overview

  • $AQUA
    • Primary token deployed in liquidity at day one.
    • Full float available in automated pools, fostering deep and stable liquidity from the start.
  • $poAQUA
    • Protocol-owned liquidity pool token designed to bribe Berachain validators.
    • Redeemable for Aegis-powered liquidity positions over time.
    • Encourages long-term holding; those who keep $poAQUA benefit from accumulating more liquidity over time.
  • Core Goals
    1. Address Low Float, High FDV Issues
      • Traditional low-float tokens often cause unsustainable valuations and abrupt sell pressure.
      • AquaBera’s DFF approach puts all $AQUA in liquidity pools upfront, ensuring substantial circulating supply from the outset.
    2. Protocol-Owned Liquidity
      • All $AQUA is initially under protocol control, mitigating early dumping.
      • Over time, bribes and user interactions distribute liquidity incentives across the ecosystem.
    3. $poAQUA → Aegis LP → $HONEY
      • $poAQUA accumulates additional Aegis LP tokens, designed to become more $HONEY (Berachain’s stable asset) over time.
      • If a holder redeems $poAQUA early, they forfeit future Aegis LP yield, which then accrues to remaining holders.

2. The Dynamic Full Float Model

2.1 Full Liquidity Deployment

$AQUA

  • 75 million tokens placed into protocol-owned liquidity at launch.
  • Creates a deep pool of liquidity to prevent low-float price spikes or immediate dumps.

$poAQUA

  • 1 million protocol owned liquidity tokens, set aside to bribe validators, project partners, or dedicated participants.
  • Does not dilute the main $AQUA pool at TGE; it’s designed to drive long-term alignment.

2.2 Sustainability & Price Stability

  • Fewer Abrupt Unlocks: Because $AQUA is fully in liquidity from day one, you don’t see sudden waves of new supply entering the market.
  • Gradual $poAQUA Redemption: Redeeming $poAQUA for underlying Aegis LP is incremental. This pacing mitigates typical “unlock day” sell pressure.

2.3 Benefits of DFF

  1. Equitable Token Distribution: All $AQUA supply is accessible in the pool, aligning with Berachain’s ethos of proof-of-liquidity.
  2. Long-Term Participation: $poAQUA’s reward mechanism discourages quick exits and incentivizes bribe distribution to gauge voters or node delegators.
  3. Transparency: Smart contracts handle liquidity management, visible on-chain, and integrated with AquaBera’s Automated Liquidity Manager (ALM).

3. How $poAQUA Rewards Work

Key Mechanic

  • As time progresses, each $poAQUA accumulates more Aegis LP tokens.
  • These LP tokens become a larger proportion of $HONEY (Berachain’s stablecoin) over time.
  • Early Redeemers: If any $poAQUA holder redeems early, the portion of Aegis LP that would have gone to them gets redistributed among the remaining $poAQUA holders.
  • Validator Perspective: Validators collecting or bribing with $poAQUA are likely to hold it, boosting their potential future Aegis returns—and passing governance bribe incentives to delegators.

Why This Matters

  • Ecosystem-Wide Liquidity: Combining $AQUA, $poAQUA, and Aegis LP tokens fosters robust liquidity in multiple assets, including $HONEY.
  • Strong Alignment: Participants who believe in AquaBera’s long-term success are rewarded more than short-term flippers.

4. Context: Addressing Low-Float, High-FDV

  • Market Trend: Many recent tokens launch at inflated fully diluted valuations, with minimal liquidity in circulation. This can lead to steep price volatility and heavy “unlock dumps.”
  • AquaBera’s Response:
    1. Dynamic Full Float: All tokens are out at once, avoiding artificially low float.
    2. PoL Integration: Encourages real liquidity usage, vital for Berachain’s security and usability.
    3. $poAQUA as a Unique Bribe Asset: Node operators gain a valuable, yield-bearing token, decreasing the urge to sell and fostering long-term network stability.

5. Proof-of-Liquidity (PoL) Synergy

AquaBera + Berachain

  • AquaBera’s directional liquidity strategies feed into Berachain’s PoL, driving robust yield for participants.
  • $poAQUA bribes motivate validators to support certain liquidity pools or project tokens.

Validator Incentives

  • By distributing $poAQUA to voters, validators build a reputation for profitable gauge selection.
  • This cycle leads to more $BGT delegations, more bribe revenue, and deeper liquidity across the chain.

6. Implications & Future Outlook

  1. Ecosystem-Wide Benefits: Strong liquidity at launch ($AQUA), long-term bribe incentives ($poAQUA), and stable treasury infusion (Aegis LP → $HONEY).
  2. Confidence: Minimizing manipulative spikes or dumps encourages a healthier trading environment.
  3. Flexible Expansions: Additional features (e.g., new pool pairs, cross-chain expansions) can layer onto the existing DFF framework.

Risk Note\ All crypto projects carry inherent volatility. AquaBera’s DFF model seeks to reduce typical pitfalls but does not eliminate all market risk.

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