Introducing $CRNCHY
We, Crunchy.Network, take great pride in the community we have built and spend a large portion of our time talking and listening to community members. We believe that is very evident in the recent products we have created; portfolio tracker, DEX aggregate, and the token tracker.
With that, over the past year we have heard many concerns about the two token model utilized by Crunchy.Network largely due to the lack of liquidity in the ecosystem. We hear you. So much so that we agree and will be doing a token merge of crDAO (DAO token) and CRUNCH (utility token) in the coming month. The new DAO and utility token will be CRNCHY.
Whoa…yeah we know. However this was not an overnight decision. We have discussed this for months internally and privately we have seeked advice from community members and leaders. Overall, we believe this will give Crunchy.Network a more appealing tokenomics as both a DAO and utility token.
Why would we want to combine tokens? Well, there are many reasons. However, the main reason is there is a lack of liquidity in the Tezos ecosystem while we are fully in a bear market. From our perspective, the bear market is an opportunity to consolidate tokens and ensure the tokenomics are stronger than ever. CRUNCH holders will receive the added DAO utility. While crDAO holders will enjoy more liquidity and the increased utility. The new CRNCHY token will do it all.
Snapshot then Airdrop
We are attempting to make this as easy as possible for users. Over the next 2 weeks we will take a snapshot. We will then airdrop the new CRNCHY token on Jan 1 2023. You won’t have to do anything and we strongly recommend against trading during this time. If you do trade, just know you make trade after the snapshot date and will not receive the new airdropped token.
Also, we do strongly recommend that users pull their crDAO and CRUNCH liquidity from any DEX. If not, you will still receive your airdrop, but after the airdrop it is likely that users will sell their crDAO or CRUNCH for whatever liquidity is remaining on any DEX. To protect your XTZ side, remove your liquidity.
With two tokens, how will you decide how much value will the new token have? On the snapshot date, we will also take a snapshot of the price of crDAO and CRUNCH. The combined marketcap will be the marketcap for CRNCHY. Depending on the individual marketcap of either crDAO or CRUNCH will determine the airdrop amount for each token.
Let’s look at an example:
Current MC of CRUNCH= $195,000
Current MC of crDAO= $168,600
Total MC= $363,600.
CRUNCH= 54% of the marketcap
crDAO= 46% of the marketcap
Therefore, CRNCHY would have a total marketcap of $363,600.
Basically, every user will be airdropped the CRNCHY token at the exact value the day of the snapshot.
Tokenomics
We are sticking to the previous tokenomics model of the CRUNCH token but instead increasing the max supply to 500,000,000.
Tokenomics Breakdown:
Total Supply: 500,000,000
Team Fund: 25%
User Incentive Fund: : ~28%
Burned Tokens: ~2%
Liquidity: 5%
crDAO/CRUNCH airdrop: ~40% (dependent on snapshot and MC’s)
Note: Previously, the Crunchy team never sold any CRUNCH from the team and user incentive fund. However, in the future this may change. For now, we will be locking our team CRNCHY tokens for a period of 1 year. All previous tokens the team owns will be burned.
Liquidity
For liquidity, we will be placing 10,000 XTZ from the team’s personal accounts and locking them for a period of 1 year. Once we create the new Homebase DAO, we will submit a proposal to have 5,000 XTZ from the DAO placed in liquidity as well.
The DAO
We will need to create a new Homebase DAO for the new token. The good news is we can start the DAO over from our previous learnings with a more suitable quorum. This is perfect timing with Homebase recently releasing lambda calls. Once the DAO is created, it should be fully functional and ready for proposals. As mentioned above, the first proposal the team will submit will be to add liquidity from the treasury.
Final Thoughts
We fully believe in the products we built and are building. We see Crunchy.Network as a place users can find detailed token pricing and charting, see their DeFi portfolio, swap tokens seamlessly, and create farms and lock tokens in the deep freezer. Once Sliced.art is live, it will also start buying back and burning the CRNCHY token and help grown the Crunchy.Network DAO treasury. But even all these tools are just the start. We have an ambitious roadmap and fully believe the adjusted tokenomics will help enable what we are building.
Did we cover everything? Probably not. There are a lot of moving parts so don’t be afraid to jump in the Discord and voice your opinion and feedback. We are always willing to have a conversation.
Website: https://crunchy.network
Twitter: https://twitter.com/CrunchyTez
Discord: https://discord.com/invite/99UnxxgB46
