In Virgo, the funds held in its treasury are handled by smart contracts, which facilitate all purchases, distributions, and purchases.
The M87 token holders will be able to stake their tokens directly in the DAO or use them to bid on a unique collection of 110 NFTs called Messier Objects. In the event an NFT is won, the tokens used to obtain it are burned.
M87 – Virgo
Messier Objects NFT stakes will yield additional rewards that would otherwise not be possible. Besides being able to sell into ETH directly, the NFT isn’t subject to the price impact that arises when selling against M87’s liquidity.
Staking M87 tokens in their native forms will result in yield from Pool 1, whereas staking as Messier Objects NFT will result in yield from Pools 1 and 2. Pool 2 yield can only be obtained if you own one of the NFTs.
A holder’s stake (whether loose tokens or Messier Objects NFTs determines whether they are able to create proposals or vote on proposals.
M87 holders whose stakes rank among the top 87 positions will be known as the Pōwehi (The Embellished Dark Source of Unending Creation), responsible for making Treasuryfund proposals on other ERC20s on DEX.
Pōwehi can propose to spend 8.7 or 17.4 ETH on any ERC20 listed on DEX. They may also propose selling previously purchased ERC20s into ETH through proposals.
Halo will refer to M87 holders with stakes below the 88th position, who will vote on the proposals created by the Pōwehi. One vote per wallet will be Halo’s voting power.
In an effort to encourage M87 staker consolidation, distribution will be based on staker share of the pool and on staker ranking on a linear bonding curve.
In this way, stakers are encouraged to avoid splitting their staked tokens across multiple wallets in order to gain an unfair voting advantage.
Halo will vote blindly until a proposal passes or fails based on a majority vote. If a proposal passes, a smart contract will take ETH from the Treasury, buy the ERC20 specified in the proposal, and distribute those tokens to the following places: 12.13% to Pool 1, 0.87% to Pool 2, and 87% to the Treasury.
The Treasury can hold any quantity of ERC20 tokens, except for ETH, which is limited to 87 tokens. A buy of the M87 token will occur whenever ETH exceeds its maximum capacity of 87 tokens, burning out the circulating supply of M87.
Cycles consist of 87 successfully passed proposals; stakers who remain staked for a full cycle will be deemed darklisted, and receive additional yield from the DAO.
M87 stakers who were not staked when the cycle began may choose to lock in their stake for one full cycle worth of proposals in exchange for a “Darklisting Qualification”
Upon the end of each cycle, a smart contract will distribute every ERC20 token purchased by the DAO, except for ETH, as follows: 12.13 % will go to the Darklisted Pool 1, 0.87% to the Darklisted Pool 2, and 87% will be sold back into ETH.
As part of the Supernova smart contract, 12.13% of the newly acquired ETH will be distributed to the Darklisted Pool 1, 0.87% to the Darklisted Pool 2, and the remaining 87% will be deposited back into the Treasury. This will result in a massive buy-and-burn of the M87 token.
Assuming that every token purchased by the DAO remained stable in value, and that no gains were made on any of its investments, let’s run some numbers conservatively:
A total of 756.9 ETH is generated by 8.7 ETH multiplied by 87 proposals
756.9 ETH – 13% Yield (pool 1 + pool 2) ≈ 658.5 ETH
658.5 ETH – 13% Darklisted Yield (pool 1 + pool 2) ≈ 572.9 ETH
572.9 ETH – 13% 2nd Darklisted Yield (pool 1 + pool 2) ≈ 498.42 ETH
With the Treasury limited to 87 ETH, the buy & burn smart contract is triggered by (498.42 ETH – 87 ETH) = 411.42 ETH
If you want to learn more about M87’s upcoming Virgo DAO, visit
Website: https://messier.app/
Twitter: https://twitter.com/MessierM87
Telegram: https://t.me/MessierM87Community
Documents: http://messier.gitbook.io
This press release was originally published on this site
