Tokenomics

The tokenomics of Cecil DAO presents a distinctive approach to governance and community participation in decentralized finance. With a limited initial token supply and an emphasis on long-term value creation, Cecil DAO’s structure is crafted to sustain a self-governing ecosystem focused on social impact and efficient management of resources.

Token Supply and Distribution

Cecil’s total token supply at the Token Generation Event (TGE) is set at a fixed 1 million tokens. The distribution of these tokens highlights the project’s dedication to both security and equitable access:

• 3% for SNS Swap: A portion of tokens is dedicated to the SNS (Service Nervous System) swap, allowing for token purchases with Internet Computer Protocol (ICP) tokens. The SNS swap has a minimum target of 3,000 ICP and a maximum target of 300,000 ICP. Of these Cecil tokens, 50% are locked for three years, fostering long-term commitment, while the remaining 50% are available for immediate liquidity.

• 3% for Origyn Foundation and Decentralized Entities Foundation: Another 3% is allocated to the two foundations in exchange for a donation of 300 million OGY tokens and development support. This donation aligns Cecil’s goals with charitable initiatives, with half of the Cecil tokens locked for three years and the rest available immediately.

• 94% Treasury Allocation: The majority of Cecil’s token supply (94%) resides in the treasury, managed by the DAO and under the governance of token holders, rather than allocated to team or advisors, ensuring the funds remain community-driven.

• The ICP funds raised through the SNS Swap will be distributed as follows: 50% will be dedicated to new projects voted on by the DAO, starting with the Akashingas project, and 50% will go to the endownment of the Cecil AI Agent.

• No team, no advisors, and no VC allocation.

Governance Structure

Cecil DAO is governed through a system that emphasizes active participation and the influence of long-term stakeholders. Key elements of the governance model include:

1. Voting Power and Stake Requirements: The governance model is based on staked tokens, granting voting power without traditional staking rewards. This means that Cecil token holders gain influence through their active participation in governance rather than passive staking income, ensuring that only engaged members shape the future of the DAO.

2. Neuron Participation Requirement: Governance requires staking Cecil tokens in “neurons,” a structure similar to that used in the Internet Computer ecosystem. Neurons must be locked for a minimum dissolve delay of three years to gain voting power, which prevents short-term manipulation and emphasizes the project’s long-term vision.

3. Age-Based Voting Power: Long-standing neurons (over three years old) are rewarded with a 200% age-based bonus in voting power. This feature incentivizes sustained involvement, further discouraging transient participants.

4. Proposal and Rejection Costs: To promote thoughtful governance and discourage spamming, each proposal requires a commitment of 1 Cecil token, which is forfeited if the proposal is rejected. This ensures a high standard for proposals and reinforces serious governance.

Revenue Model

The DAO’s treasury includes a blend of assets from different sources—Cecil tokens, ICP tokens, OGY tokens, and ICP node rewards. Treasury funds are actively managed, and decisions about fund allocation are determined by stakeholders in the DAO. The major components include:

• 14 ICP Nodes for Regular Rewards: The DAO initially operates 14 ICP nodes, with rewards generated periodically and contributed to the treasury, enhancing the DAO’s financial sustainability.

• 300 Million Staked OGY Tokens: The significant donation from the Origyn Foundation is staked, with the resulting yield directed toward charitable projects. This staking mechanism not only generates rewards but also reinforces Cecil’s social mission.

• Transaction Fees: Every transaction involving Cecil tokens incurs a 0.01-token fee, adding another revenue stream to the DAO. Over time, these accumulated fees support operational expenses and community projects.

Participation and Donations

Cecil DAO offers a variety of avenues for participation, from staking to donations, making it accessible to both token holders and outside donors:

1. Community-Led Projects and Donations: Donors can either contribute to specific projects or the general treasury, making it possible to directly support causes aligned with personal interests. Large donors may receive locked Cecil tokens, further incentivizing charitable contributions.

2. Cross-Blockchain Collaboration and SNS Swaps: Cecil DAO’s structure is designed for cross-chain compatibility, inviting projects on ICP and other blockchains to participate in the DAO. Projects may swap their staked tokens for Cecil tokens, with generated yield earmarked for charitable activities.

3. Expansion of Treasury via New Minting: In the case of treasury depletion, the DAO has the option to mint new Cecil tokens. This function is designed as a backstop rather than a frequent mechanism.

Conclusion

Cecil DAO’s tokenomics embody a deliberate balance between sustainable financial management, community engagement, and social impact. Through its governance-focused design, the DAO fosters a committed community while advancing charitable goals. As Cecil DAO evolves, this unique model offers insights into the future of DAOs that prioritize both decentralization and purposeful growth. The blend of governance, treasury oversight, and cross-chain compatibility positions Cecil DAO as a forward-thinking player in the decentralized finance ecosystem, showcasing how blockchain technology can drive positive change.