A GRWTH token will be released on the Ethereum mainnet using the ERC-20 standard. GRWTH has a fixed supply of 100 million tokens, meaning no more can be minted after this is reached.
The contracts can be viewed here and open-sourced ERC-20 has been deployed here.
Following the Growth DAO commercial model, the tokenomics have been designed to distribute value equitably across the community.
Startup growth is the main driver of value creation. The retainer fees are collected by the Treasury in USDC and subsequently rewarded in GRWTH tokens based on their contractual terms. These funds are directly passed to the Startup Client Account to be distributed to the Expert Wallets within the Growth Team. Growth Team members earn their contractually agreed fees in USDC or fiat currency, with a GRWTH reward added to each transaction. Proposals can be made from across the community, to be funded by either the Startup Wallet or the treasury. All success proposals and USDC distributions to the Growth Team will be rewarded in GRWTH.
In order to grow Growth DAO and create value in GRWTH, 20% of the Startup Client Account distributions are allocated to the Treasury. A proportion (10%) is then used to burn GRWTH. The proportion used to burn GRWTH is reduced by 5% if the project has been successfully referred by another member. This proportion is rewarded to the referrer for generating opportunities.
In order to provide capital to the community and foster startup ideas, investors are encouraged to participate. On successful voting by the community investment can be taken directly by the Treasury in exchange for GRWTH. However, the primary source of capital will be derived via the Liquidity Pool. Contributions of USDC and ETH can be made by investors. GRWTH will be put up by the Treasury in exchange for this liquidity. Investors will receive Liquidity Pool tokens (xGRWTH) to reflect their stake of the pool and essentially track their ownership of the potential waterfall distributions. This creates an evergreen funding structure for long-term success. LP tokens will not be used for governance or utility, but investors are able to stake their LP tokens to earn an Annual Percentage Yield (APY) (c.10%) in GRWTH and participate in the community development. The aim of this model is to incentivise investors to lock in their capital principle over 5-10 years.
The Treasury will be able to use this capital to exchange capital for startup tokens in promising projects within the community. Additionally, the Venture Team will be able to identify and support emerging ideas coming from the community. In both cases, the Treasury will look to sell these positions (Startup Exit) as agreed by the community. Distributions will be made to holders of the LP tokens to return their capital, and incentivise further capital commitments. Then venture profits will be split, 80% being returned to the LP token holders, 20% being returned to the Treasury and burned for GRWTH.
The diagram below represents the flow of assets throughout the ecosystem. Whilst many of these flows are interrelated, here is a brief example of 2 typical flows:
New Startup Client services
- Startup Client is accepted by the community, creates a wallet, signs a contract and pays a retainer for growth team services.
- The Treasury receives the retainer (in USDC or Fiat), issues GRWTH to the startup wallet as a reward.
- Treasury retains 20% of contracted retainer as Service Profit, distributes the remaining 80% as funds in the Startup Client Account.
- Members of the Growth Team receive USDC for their contracted services. They are also credited GRWTH as a reward, building reputation.
New Investment and Venture
- Investor commits USDC to the Liquidity Pool, receives LP tokens (xGRWTH) and stakes them for GRWTH tokens over time.
- Treasury will swap GRWTH tokens for USDC in the Liquidity Pool, building up a reserve of USDC
- Treasury can distribute USDC to Venture Teams, who can pay Growth Team members in USDC
- Treasury can buy equity or tokens from the Startup Clients and hold these assets