Tokenomics#
Rosen Bridge is designed to bootstrap liquidity across multiple ecosystems. The Rosen Token serves the as a sybil resistance mechanism for the Rosen framework, a fee distribution mechanism, and means to access services of the Rosen Bridge.
Watchers are required to put collateral in RSN and ERG by staking, which allows them to acquire reporting permits. Guards need to lock RSN as collateral. Funds will be emitted to the Guard Set and involved Watchers in case of any successful bridge transfers. However, funds will be slashed/collected in case of malicious behavior. When RSN emission has ended, all bridge fees will be collected in the RSN token. Holding RSN will have special fee benefits for projects.
Any user can join as a Watcher given they meet the collateral requirements needed to participate, and earn rewards for their services.
Overview#
- Token Name: Rosen Bridge Token
- Token Ticker: RSN
- Max Supply: 1,000,000,000
- Initial Liquidity Bootstrapping: 100,000,000
Breakdown#
| Token Allocation | Number of Tokens | % of Total Supply | Distribution Method |
|---|---|---|---|
| Initial Liquidity Bootstrapping (Ergo and Cardano) | 100,000,000 | 10% | Liquidity pool and ISPO |
| Future Liquidity Bootstrapping (New Chains) | 385,000,000 | 38.5% | Liquidity on new chains |
| Event-Based Emission (Rewards) | 250,000,000 | 25% | Event-based |
| Passive Staking | 25,000,000 | 2.5% | Staking rewards |
| Team Budget | 105,000,000 | 10.5% | 48-Months vested |
| Treasury | 105,000,000 | 10.5% | 48-Months vested |
| Ergo Foundation | 30,000,000 | 3% | 48-Months vested |
Funding#
Rosen Bridge is entirely self-funded, with no private sales, venture capital, or SAFT agreements involved, with all contracts being financed out of pocket as there is no emission yet. The core team consists of 6 main developers.
Initial liquidity for Ergo, accounting for 5%, was deposited on the Spectrum LP. There were no bots or front-running involved.
We collaborated with Zengate for Catalyst, as it involves Cardano politics, an area that falls within their realm of expertise.
We have successfully completed and received funds from milestone 3 and have submitted milestone 4 for F10 funding.
Why is the RSN token needed?#
- Capital Formation. Development has costs. Also need to form liquidity on the market.
- Creates incentives (event-based emission).
See this answer from Armeanio in the Weekly Update & AMA - December 14th 2023.