Pharo IDO & TGE
Pharo plans to mint 100,000,000.00 (aka 1e8 or one-hundred million) $PHRO with a starting price of $0.05. The Pharo IDO tokenomics are designed to build a team for Pharo mainnet launch.
PHRO IDO Allocation
Each slice of this pie is designed to ensure Pharo can hire a team to properly launch our first market, whether it’s SHIB or something else the DAO chooses.
Team: Sean Moore Gonzalez & Jason Romero will have been building Pharo for roughly one year as of April 2022. We need to prove to our families this was a good idea 😆😂
NFT Match Airdrop: We’re fulfilling our 50% token discount for Pharo NFT holders by matching their PHRO held two (2) weeks after TGE, vested over one (1) month.
Advisors: We have a great team of advisors that have supported us from the beginning, time for us to support them. They continue to support us and will support you as the protocol goes live.
Airdrops: We’ve run a number of airdrop campaigns, including our Thorchain test, time to pay the bill and prepare for future drops.
IDO Kickstarter: We want to reward our early liquidity providers with competitive multipliers and yield.
DEX Liquidity: PHRO reserved for providing liquidity to the Gravity Finance DEX after TGE.
DAO Treasury: PHRO reserved for building the fulltime team that will launch PHRO on mainnet.
DAO Bounties: We need to give the DAO a vehicle for engaging with independent developers as not all jobs are full time. As a result, we want to make sure the DAO can create jobs and allocate PHRO as bounties for these short-term jobs.
PHRO Allocation Value @ TGE
Pharo Kickstarters: Includes the Advisors and Airdrops, aka PHRO we promised for pre-TGE support and action. These 10MM PHRO tokens, $500K, represent the most significant sell pressure in the first week.
Team Ra: Includes the founders, full time hires, and the DAO. From this 40MM PHRO allocation, Roughly 4MM PHRO, or $200K worth, will have sell pressure in the first month from vested tokens. The DAO will not start allocating and spending PHRO until the price stabilizes.
NFT Match Airdrop: This is our 50% discount for providing the initial liquidity, which is reflected in the valuation of those tokens. These 20MM tokens are held by our hodlers, so don’t represent significant short-term sell pressure, but are still vested over a month.
DEX Multiplier & APY Kickstarter: These Kickstarter tokens represent supply post-TGE as people must exercise their PHRO, however obtained, to acquire their share of this supply. This represents a constant sell pressure until the price stabilizes. The incentives will be ramped down over time as PHRO market revenues ramp up; If we conservatively estimate the launch of the first Pharo market for Q3 2022, this creates a constant sell pressure of 20MM PHRO over six months, or $167K per month. Hodling is incentivized as speculative prices will certainly be lower than prices from real market demand.
DEX LP Tokens: To receive DEX Multiplier & APY rewards, hodlers will first need to pair their PHRO with MATIC, USDC, or GFI. These 15MM PHRO tokens are reserved for people aping into the Pharo IDO and represent buy pressure in the first weeks.
Pharo Markets & PHRO Prices
Pharo markets provide constant buy pressure, so hodlers profit increases with more and active Pharo markets. This effect on PHRO price can be precisely calculated using the Buterin definition of currency price (Credit: https://invest.net/token-velocity):
C = T * H / M
M is the total money supply
C is the price of the currency
T is the transaction volume (economic value of transactions per time)
H is users’ hodling time before use
For those that LOVE math word problems 😆 we can speak this equation as:
PHRO price is its transactions’ value and frequency of use, for all circulating tokens.
As market buy pressure locks-in more PHRO and reduces supply M, PHRO price increases proportionately. For example, a stable Pharo market collecting a constant principle each cycle with a constant hodl rate, will see a constant rate of the PHRO supply locked in its reserve pools. If those reserve pools represent 10% of all PHRO in supply, hodlers will raise their PHRO price C = T * H / M = T * H * (1 / 0.9) = T * H * 1.11, a 11.11111% price increase; 50% of all PHRO yields a 100% price increase.
Looking for 10x returns from locked-in PHRO?
C = T * H / M
10 = 1 / M
M = 0.1
How many markets will Pharo need to lock-in 90% of PHRO tokens for a 10x return? 100x? What percentage of PHRO may the DAO utilize? An active DAO could plausibly lock 10% of all PHRO for gPHRO, effectively removing that percent from supply, or greatly increasing the average hodl time. We’re looking forward to exploring these champagne challenges with you.
PHRO Allocation Summary
The key takeaway is the relationship between PHRO sell and buy pressures over the Pharo IDO conservative timeline of six months. A static analysis of tokens that represent buy, sell, and hodl pressure would be 25MM buy pressure vs 15MM sell pressure vs 40MM hodl:
- 25MM Buy Pressure = 15MM DEX LPs + 10MM NFT
- 25MM Sell Pressure = 6MM Airdrops + 4MM Team Ra + 15MM DEX APY
- 50MM Hodl Pressure = 4MM Airdrops + 36MM Team Ra + 10MM NFT
In reality all tokens will not simultaneously enter the market, dynamics are represented by the vesting periods and time to earn PHRO from staking. This timed release of PHRO will need to be bought by hodlers or reintroduced as DEX liquidity, with a goal of stabilizing in time for the first Pharo market launch.
People hodl because they believe in the future. The future of Pharo and PHRO are its markets, which provide constant buy pressure, so hodlers profit increases with more and active Pharo markets.
IDO Executive Summary
The IDO will pay our early supporters, and build a mainnet launch team to literally build value for PHRO hodlers. The IDO will use NFT sales to provide initial DEX liquidity, and Pharo will use market buy pressure to multiply prices after mainnet launch. Vesting ensures PHRO isn’t dumped on the market, and users are incentivized to hodl as Pharo markets’ launch on mainnet will greatly increase the price of PHRO and thereby hodlers’ returns.