Dear IronChads,
The time has arrived. After months of building, refining, and evolving alongside all of you, we are thrilled to unveil the native governance token of Ironclad.
Since its launch in February of this year, Ironclad has experienced a remarkable rise into the upper echelon of protocols on Mode, achieving milestones such as:
- Total Market Size surpassing 130M+
- Over 15,000 users
- Over 350,000 transactions
Our progress thus far has been truly exceptional, and we are extremely excited to embark on this next stage of growth and development alongside the rest of the Mode ecosystem.
So without further ado, may we present Ironclad’s native governance token, $ICL.
Tokenomics
Please note: Below you’ll find the tokenomics details. Tokenomics allocations have been revised since publishing this article. The descriptions of the segments remain the same. Check out our new article for the latest.
Liquidity
7.5% of total supply will be dedicated to supporting $ICL liquidity, allocated strategically across various pools across centralized and decentralized exchanges. Most of this will be unutilized at first, but we will deepen liquidity as more ICL starts to circulate.
Public
2.5% of total supply will be distributed to participants of $ICL’s public sale (LGE) on Superchain One.
Seed
7.5% of total supply has been allocated to value-add partners who have helped bootstrap Ironclad.
Strategic Partnerships
5% of total supply will go towards securing important partnerships and facilitating our longer term strategies. Consider these auxiliary funds to be used when seize an opportunity when it’s valuable to do so.
Treasury
15% of total supply will be placed in the team treasury. Treasury funds will be used to fund initiatives to expand Ironclads reach and sustainability, as well as to support $ICL liquidity. This allocation will follow a 48-month linear vesting schedule.
Airdrop
5% of total supply will be airdropped to you, our dedicated users and Embers farmers. We will provide further airdrop details in our next article.
Foundation
10% of total supply will go to the foundation that backs Ironclad, vested linearly over 12 months. These tokens will be used to fund audits, technical development, and research for Ironclad.
Incentives
35.5% of the total supply will be dedicated to liquidity incentives over the course of 4 years. The distribution schedule follows a decay as follows:
- Year 1: 14% of total supply distributed
- Year 2: 9.75% of total supply distributed
- Year 3: 6.5% of total supply distributed
- Year 4: 5.25% of total supply distributed
Incentives will be used to drive new usership of our software. The DeFi yield market is competitive, and we will emit tokens strategically to find our place within it.
Ecosystem Grants
Ecosystem grants will be used to fund projects that build on Ironclad, iUSD, and $ICL.
Cumulative Vesting and Emissions
Below you will find the cumulative vesting and emissions schedule for $ICL.
Our approach to token emissions is grounded in the principle that every ICL spent should provide maximum value for the protocol and its governors.
The schedule has been designed to create optimal alignment between the protocol and participants, with the goal of maximizing value and sustainability over long time horizons.
Mode’s Native Credit Layer
Over the next few months, we will expanding our offerings and doubling down on our commitment to Mode adoption.
iUSD
Our vision for Ironclad has always extended beyond that of a standard money market. Soon, the protocol will transform into a modular lending powerhouse that issues its own stablecoin. iUSD collateral will be used to bootstrap liquidity and creating a native source of sustainable yield for minters. This will result in a positive feedback loop of cost-efficient borrowing, yield generation, and the most competitive rates across the entire network for lenders and borrowers.
Real Yield
Around the time of the $ICL token launch, Ironclad will be adjusting platform fees from 0% to 50% of interest generated by the Lend module with all 100% of these fees being sent to the $ICL staking pool as MODE & ETH rewards from Day 1. You will want to be first. Since Ironclad values loyalty; experience a yield-bonus which steps up over a six month maturity curve.
This is a direct implementation of our belief that rewards for users, liquidity providers, and governors should be designed to scale not only with the size at stake but their loyalty to the protocol too. This mechanism aims to keep $ICL staking empowering, flexible and liquid.
Treasury Alignment
As you may have already noticed, we are extremely bullish on Mode. The full potential of this ecosystem has only just been glimpsed, and our goal is to be the epicenter of activity and liquidity as Mode’s growth accelerates. We will be dedicating a portion of our treasury to accumulating $MODE, in line with our efforts to become the ultimate beta for Mode exposure. This will allow us to support our own markets when necessary, capitalize on the ecosystem’s growth overall, and further align ourselves with the success of our home network.
The unveiling of Ironclad’s native governance token, $ICL, marks a significant milestone in our journey. Together, we will continue to build, innovate, and lead in the DeFi space. Thank you for your unwavering support and dedication. The future of Ironclad is bright, and we are excited to embark on this journey with you.