Token Distribution
As AVAI is generated as loans are taken out, there are no explicit distributions required, as they will be minted and burned as they are intended to be (read more on the AVAI Token page).
Therefore ORCA is the only token requiring a breakdown. The planned distribution of the fixed cap of 150,000,000 ORCA tokens will be as follows:
Staking Rewards
Strategic Partnerships
Exchange Liquidity, Code Audit
Marketing & Community Endowment

80% - Community

There will be no pre-sales or private sale of the ORCA token as the intention of the team is not to maximize profit, and to stay as decentralized as possible. OrcaDAO is made to be owned and governed by the community, therefore token distribution must mirror this sentiment. Under this requirement, we've allocated the heavy majority of tokens to the community as follows:

55% - Staking Rewards

For Liquidity Providers and Staking users to reap early rewards and receive ORCA tokens as reward for their contributions to the ecosystem's early uptake and stability.
The 55% staking rewards (which total 82,500,000 ORCA) will be released on the following schedule:
Gross ORCA amount
% Bonus
Per Month Distribution
Year 1
30% Linearly
10% over first
4 months' launch
Month 1-12: 2.5% base
Launch bonuses:
10% - Tiered
Month 1-2: + 3.75% bonus
Month 3-4: + 1.25% bonus
Year 2
25% Linearly
Monthly: 2.083% base
Year 3
20% Linearly
Monthly: 1.667% base
Year 4
15% Linearly
Monthly: 1.25% base
Visualized by month:
In other words, there is an incentive to be an early staked in the OrcaDAO network. Orca holders that are early to stake have already shown initiative and the forethought to the benefits of the protocol and DAO, and are leaders in their own right. They have done the research, determined the value of OrcaDAO was worth the investment and will serve as early champions of the protocol. They will therefore receive the additional incentive to help grow the ecosystem and establish their voice with governance decisions.

10% - Strategic Partnerships

These tokens will be set aside to help grow the ecosystem. There are well established and growing projects on Avalanche that should thrive with a native stablecoin that they can use for pairing, but it will be on the team and OrcaDAO community to showcase this to the community and vocalize this desire to other projects.

15% - Treasury

To be used as network insurance, securing the health of the network in early stages. This will be secured and untouched by both team or community in early stages. Once the network has transitioned to a DAO, the community may vote towards the future of this allocation, whether that be to distribute it to ORCA holders, to burn some portion of this fund, or otherwise as the DAO decides.

20% - Startup

The remainder of funds are allocated between the developing team as ongoing incentive and to the startup health of the ecosystem to maximize chances of sustained success.

5% - Exchange Liquidity, Code Audit

These funds will be used for startup reserved to provide liquidity to exchanges, for both DEX and CEX listings. This will be required to reduce spread and improve investor experience upon listing on those exchanges.
The top priority for the team post-mainnet launch is to establish a full code audit to ensure legitimacy, security, and reliability of the code base and contracts. As well we invite third party review, to ensure as many scrutinizing eyes as possible. As this is a more complex code base than most projects on Avalanche such as yield farms, it will require more time and capital to execute the audit.
This will need to occur immediately after launch as that capital will be required to engage the successful audit vendor.

5% - Marketing & Community Endowment

It takes a community to raise a calf, and this is no exception. We will need to make ourselves known within the community as a secure, trusted, transparent, and reliable pair of tokens, lender, and LP provider with other projects that are thriving and the broader community. While the core team will put significant effort into this, we aren't naïve to thinking that we can do it alone.
Therefore, this allocation will be dedicated to community members that contribute via artwork and infographic contests, that are willing to contribute as Discord, Telegram admins or key contributors, and those who become significant community voices that help us spread the word.
Finally, during startup should any flaws be found in the contracts and codebase, there will be rewards allocated.
This will be allocated on an ad hoc basis over the first 2 years post-mainnet as campaigns kick off to help spread the word (with the intention of being front-end heavy as startup ramps up).

10% - Team

The team's primary goal after launch will be to provide direction to the nascent ecosystem, as well as maintenance and enhancement work required or proposed for the DAO. These changes and upgrades will span from everything from front-end UI changes and direction of marketing materials, to back end infrastructure, maintaining and better securing the contracts, and all integrations.
The team's allocation will be vested in equal linearly for 2 years starting upon on launch On October 1st, 2021. Each quarter, the ability to vote on the team receiving the following quarter's vesting tokens will be proposed and voted on - For the remaining seven quarters of distribution (up until October 1st, 2023).
This vesting schedule will hold the team accountable for progressing the protocol. The DAO can vote to withhold this allocation if progress is not deemed up to par.