Based Next Gen
Based Next Gen is a protocol that draws inspiration from Based V1. Based Next Gen is designed to represent the current market demand and supply at its core, and it consists of two tokens, $OBOL and $SMELT.
$OBOL is a pegless farm token whose price is based strictly on market demand, and it comes with supporting mechanics, use cases, and constant burns. On the other hand, $SMELT is the shareholder token of the protocol that gives users the ability to print $OBOL without any restrictions or conditions set in place. $SMELT is one of the ways to measure the value of the BASED Next Gen Protocol and shareholder trust in Perpetual Print Mechanism, as its holders that stake their tokens in the Boardroom receive $OBOL emissions each epoch.
The projected tokenomics show that $SMELT emissions will be capped at 90K from the farms over the next two years and 69 days. $OBOL emissions from the Boardroom are expected to be less than 28 million, with a variable expansion percentage that can be adjusted based on market demand and conditions.
The Boardroom, formerly known as Acropolis in V1, is where users can stake $SMELT to earn $OBOL every epoch, regardless of token prices. One epoch lasts for 24 hours, and staked $SMELT will be locked for three epochs (72 hours) while rewards will be locked for one epoch (24 hours). It’s important to note that any interaction with the Boardroom (staking, unstaking, or claiming rewards) will reset the lock times. $OBOL emissions will fluctuate around 1% daily, but depending on market conditions and demand, the protocol emissions can be adjusted from 0.1% to 10% daily. Up to a maximum of 20% of these $OBOL emissions will go to the Protocol Fund, while the team will receive up to a maximum of 5%.
The GODs Footprints section allows users to farm Based Labs NFTs and protocol LP tokens to earn $SMELT as it is emitted. Emissions are constant over the next two years and 69 days, but pool allocations can be adjusted as farming pools are added in future developments. Initial pools include $OBOL-FTM LP, $SMELT-FTM LP and the GodNFT pool where users are able to farm Based Labs NFTs.
The Boiler Room section is where tokens are collected from V2 taxes on$OBOL and $SMELT. The Protocol Fund will use this to grow protocol-owned liquidity to maintain stability, growth, and longevity. The Protocol Fund will be used at the Core Teams’ discretion, including but not limited to investments in other projects, development, audits, competitions, and giveaways. The Treasury will not sell any $SMELT into the market from Initial 10K minted. This will only be used for the Exchange (as intended). The Treasury will match the amount of $SMELT staked in the Boardroom until it runs out of $SMELT that is not intended to be loaded to Exchange. This is to ensure sustainable expansion of $OBOL and avoid dangerous market dilution in the initial stages of farming.
The mechanics and tokenomics of the BNG protocol are adjustable to ensure that it meets the market demand and the overall state of DeFi. For example, the emissions and APRs might be very low to avoid the inflation of the token supply when there is no demand from the market. Or once the natural demand kicks in, the emissions and APRs will also be increased in order to ensure that the demand is met with the supply. BNG has also introduced hybrid staking and farming contracts that accommodate not only ERC-20 but also ERC-721 assets, which gives the ability to accommodate other projects looking for use cases.