Building & growing an ecosystem is costly. To manage these necessary expenses, we will create pCLAM as a team and DAO incentive to ensure the protocol can continue to grow and innovate.
How pCLAM works
pCLAM is a precursor derivative of $CLAM; it gives the holder the option to mint $CLAM by burning pCLAM and providing the intrinsic value of $CLAM. For example, the DAO would provide 1 MAI and 1 pCLAM to mint 1 $CLAM.
This is similar to an option. pCLAM is worth the price of $CLAM minus intrinsic value, and it only makes sense to redeem it when $CLAM is above intrinsic value. This ensures that our incentives are aligned to keep the premium alive.
But it doesn’t stop there. pCLAM is also vested based on supply. As $CLAM supply grows, more pCLAM become available to redeem. So we don’t get an upfront payoff or an arbitrary date at which tokens have vested. We need supply to grow too.
pCLAM Distribution Breakdown:
- DAO: 700m and no supply cap (Community can vote on this)
- TEAM: 300m and 5% supply cap (which is lower than other project because we love community)
We will allocate these funds to project development, more cute design work, full ongoing audits, incentivizing the best talent to help build a prospering OtterClam ecosystem.