TAP

1.Project introduction

TapiocaDAO comprised of multiple sub-protocols, which includes; Singularity, the first-ever Omnichain isolated money market, Big Bang, an Omnichain CDP Stablecoin Creation Engine, Yieldbox, the most powerful token vault ever created, tOFT (Tapioca Omnichain Wrapper[s]) which transforms any fragmented asset into a unified Omnichain asset, twAML, an economic incentive consensus mechanism, and Pearlnet, the self-sovereign Omnichain verifier network.

2.Token application and distribution

Token application:

The TAP token is the backbone of the Tapioca DAO token economy. TAP was carefully crafted to be sustainably distributed over a long-term horizon, feature a fixed supply, and have a focus on economic growth with minimal value leakage as the foremost design principals. The end goal, once TAP has been majority permeated is to reach a ubiquitous distribution of the TAP token to facilitate maximal decentralization of the Tapioca DAO ecosystem, and to have maximized value capture with all inflation. Notably, the supply of TAP is immutably preprogrammed to be finite and decay in inflation over time, there are also no emissions of TAP itself, and thus the Tapioca ecosystem features no liquidity mining program(s).

Token distribution:

15% (15,000,000 TAP) is allocated to the Tapioca Foundation. These tokens will be locked for 12 months starting at Genesis, then linearly unlocked per transaction block over the next 36 months thereafter. This lock-up period followed by a protracted vesting period ensures core contributors remain fully committed to the Tapioca ecosystem & community long-term.

3.5% (3,500,000 TAP) is allocated to Early Supporters who bootstrapped the initial development of the Tapioca protocol. These tokens will be linearly unlocked per transaction block over the course of two years starting from Genesis, with an initial unlock of 6% or 210,000 TAP in total. The Early Supporter contribution was completed in mid 2022, at a fully diluted valuation (FDV) of $22m, or $0.22 per TAP.

13.5% (13,500,000 TAP) is allocated to Supporters who assisted with ongoing costs of development and stewardship of the Tapioca ecosystem. These tokens will be linearly unlocked per transaction block over the course of 18 months starting from Genesis, with an initial unlock of 8% or 1,080,000 TAP in total. The Supporter contribution was completed in early 2023, at a FDV of $44m, or $0.44 per TAP.

5% (5,000,000 TAP) will be distributed via a Genesis DAO Token Auction through a Liquidity Bootstrapping Pool (LBP). The proceeds of this sale will be transferred to the Tapioca DAO Treasury to seed initial liquidity for the Tapioca DAO ecosystem assets and Treasury. Visit the Liquidity Bootstrapping Pool (LBP) section for more information.

2.5% (2,500,000) TAP) will be distributed via Call Option Airdrop. For more information, visit the Option Airdrop section of these documents.

52.5% (52,500,000 TAP) will be utilized in the DAO Share Options (DSO) incentive program. This supply will be distributed sustainably in order to grow the ecosystem economically over a period of at least six years following an immutable exponential decay curve. For more information, visit the oTAP [DSO]section of these documents. The DSO Incentive Program cannot be modified whatsoever.

8% (8,000,000 TAP) will be held in the Tapioca DAO Treasury. The goal of the Treasuries TAP token holdings is to seed initial liquidity and for the DAO to utilize it at it own direction and discretion.