Cafenomics?!
Before we jump straight into Stake.Cafe’s tokenomics, please read the context behind general tokenomics!
TL;DR- The graphs, tables, and numbers below are crafted to provide maximum benefits to pool farmers and wallet stakers by implementing incrementally deflationary releases and reward mechanisms.
Quick summary on Stake.Cafe:
“ Fulfillment through enriching others ”
For our first phase, we will leverage the innovation around DeFi’s yield farming to donate to entities in need. For our second phase, we aim to build an NFT platform to allow entities-in-need to raise immediate funding or earn passive income. Read here to find out how.
Now, onto our tokenomics! What is tokenomics? Tokenomics is the topic of understanding the supply and demand characteristics of cryptocurrency. This is what dictates whether our token is inflationary or deflationary as time progresses. Inflationary ? Deflationary? We don’t want to make this article about these concepts, so they can be best described either in this academic paper, or this article.
In short, excluding circumstances we can’t control: 1) HODLers, 2) Dumpers, 3) FOMOers, 4) Panic Sellers, 5) Low-Liquidity, 6) Low-Volume, 7) Future Governance….. inflation generally devalues the tokens’ worth, and deflation generally maintains and adds value to the tokens. This is theoretical free market dynamics.
Why is this important? Stake.Cafe’s tokenomics is encoded to maintain the least volatility, most protected token value through mitigated dilution and deflationary mechanisms. ELI5? Stake.Cafe’s tokenomics makes sure your CAFE tokens’ value is steadily and stably growing!
Hope you’re still awake! Here comes the fun part, in our opinions.
You may have already read through our tokenomics on our pre-launch homepage; Now, let us explain, starting with this graph:
This is a deflationary release schedule of CAFE with a total supply of 20,000,000 coins. The low supply of CAFE is to keep the face value of CAFE reasonably high; As more coins are released in circulation, with these factors above, it would theoretically keep the coin from becoming too volatile, barring these external circumstances: 1) HODLers, 2) Dumpers, 3) FOMOers, 4) Panic Sellers, 5) Low-Liquidity, 6) Low-Volume, 7) Future Governance.
If you’ve also noticed, this graph looks like the typical halving schedule, such as bitcoin’s:
(Source: Messari)
However, we did things a little different. We balance the supply growth based on the Golden Ratio. The literal definition and reference is: The golden ratio (often represented by the Greek letter φ) is directly tied to a numerical pattern known as the Fibonacci sequence, which is a list composed of numbers that are the sum of the previous two numbers in the sequence. (Source: https://www.treehugger.com/how-golden-ratio-manifests-nature-4869736).
The reason why chose this monthly release schedule is to reward our initial believers and investors early on through generous reward mechanisms described later. This system also rewards long term farm stakers and wallet stakers later on.
We also believed that waiting to halve after 1+ years may dilute CAFE too much by releasing too many tokens in circulation before the first halving. (Disclaimer: This can be debated, but this is what we believe.)
Our Philosophy to the Golden Ratio: (Disclaimer: could get animated. You may skip if uninterested )
Like many things in nature following the algorithm and geometry the Golden Ratio, we are strong proponents of natural and organic growth. We believe that nature will run its course and return to its mean. Our motto, mission, and vision stem from believing that human nature is inherently good. There may be deviations away from the mean (mean: core of human nature) through traumatic experiences, extreme exuberance, or plain simple primal human instincts. ( We have attached some scientific papers and articles detailing these findings. Keep in mind, these are our opinions and are highly subjective)
Given this is our core belief, we think we can apply this to all aspects of our project. Let nature run its course and apply “return to the mean” principles. How does this apply to our release schedule? We’d like to believe that initially, our project sparks strong public interest. During the first few months of our launch, we believe our vision, community, and engineering development will garner a higher-than-average attention to our project. This could positively affect the value of CAFE, thus rewarding our early believers. As time progresses, our deflationary mechanisms come in to protect the value of CAFE as much as possible.
Keep in mind that we will also provide regular engineering release cadences, partnerships, and community events to add reward our early adopters and long term members!
End of Philosophy.
Hope you are still awake! There’s more!
We also have a timelock mechanism to prevent massive dumping of CAFE, which can temporarily dampen the value of the token. (See the external circumstances listed at the beginning of the post.)
This timelock is set in place to protect our stake-holders and farmers! Now, let’s talk about the Reward Allocation:
The plan with using this reward allocation approach is to allow more people to participate in the early growth of Stake.Cafe. By opening more farming pools, we are allowing liquidity providers a wider variety of tokens to stake their funds. This allows early contributors to minimize risk (through various LP strategies), which in turn also helps to stabilize the Stake.Cafe ecosystem. As time goes, we plan to adjust staking rewards to benefit holders more, allowing us to divert more energy to other parts of our platform, which have yet to be announced. Stay on for the ride and see you in our community channel!
This is our favorite part: How we are planning to reward our community!!
Please review the table and graph below before the commentary:
These mechanisms are set in place to so we can provide to our community members. We take 1.5% of the daily emission rate to reward our community members/managers through airdrops, events, and contests! We know that without our community, Stake.Cafe will not thrive!
Now, 2% of the daily emission rate will go towards further deflation through pool liquidity injections and burn rate. We will let the community decide what to do when the time comes.
The most important piece is our mission. To reiterate, our motto is: Fulfillment through enriching others. We believe in inherent goodness. But, so far, we’ve only talk about how to enrich our Stake.Cafe community! Let’s talk about how we can enrich others.
This is where we allocate 2% of daily emission rate to community-voted donate to entities that were negatively impacted by external circumstances (e.g. Covid19). This article has gotten too long and our mission deserves a standalone article to explain our philosophy, so we won’t write it out here.
Lookout for the article coming tomorrow!
Phew!!! That was one long article. We really hope by now, you further understand the substance we’re providing with our tokenomics. In our opinions, there are projects out there that could be rather generic. Stake.Cafe prides ourselves in organic and natural growth. All this comes from careful and minute planning in every single one of our processes. Thanks for reading and hope you come join us!! We are still hosting our whitelist event. Please join our Telegram. Please follow our Twitter!
