Unique.One Tokenomics — Proposal for Vote

UniqueOne Network
7 min readDec 20, 2020

The Unique.One project was created to be governed by a DAO — Decentralised Autonomous Organisation.

Before the Mainnet is launched, the Founding Team is proposing the Initial Ratification of the Tokenomics Structure for Unique.One to the Unique.One community.

Voting for this proposal by $RARE token holders starts 00:00 UTC 22nd December 2020 and ends 00:00 UTC 25th December 2020.

Unique.One’s motto is for the community, by the community.

The Unique One Vision

The Unique.One vision is to create a vibrant, truly decentralised marketplace independently operated by the Digital Art community.

The mission is to provide a place for new and professional Artists to socialise — and push their creativity to the limits — on a fair and level playing field.

Unique is the home of the sociable creative in Digital Art.

Unique seeks to achieve the highest NFT transaction volume and continuously improve the platform.

We believe the community’s passion for the true spirit of decentralisation and freedom of expression will help us grow.

Here is how we do it…

Introducing $RARE

$RARE is a token created on Ethereum to govern the ecosystem of the entire platform — from NFT creation to Liquidity Pool, and DAO.

The token name $RARE was chosen because it reflects the scarcity of a Unique item.

The total supply of $RARE is 10 million and no more will be minted.

Initially, 20% of $RARE is sold via a private round to raise USD 200k to cover development and the minimal level necessary for operations for Year 1.

Another 20% will be allocated to DAO Governance.

The balance of 60% of the $RARE distribution is for various types of mining, contests, bounty, or airdrop programmes.

We believe over time, such a model will enable Unique.One to be owned by the users — Artists, Creators, and Collectors of the platform.

We discuss key features of the Tokenomics below.

Net-Zero Platform Fees

Unique.One has a policy of redistributing all Platform Fees collected to all holders of the circulating supply of $RARE as an airdrop. (This does not constitute dividends of any kind.)

The Unique.One DAO may change the policy to either adjust the rate of the Platform Fees, apply creation fees, or to burn the entirety of the $RARE transaction and creation proceeds at a later date.

For Collectors/Buyers, we charge a 1% platform fee which will be used to buy $RARE from the market and airdropped to existing $RARE token holders — Net-zero platform fee.

Artist No-Fee Policy

On all existing digital art NFT platforms, there is a practice of charging Artists and Creators for publishing their work — which takes a big cut of the proceeds from their sales.

We believe the new efficiency afforded by digital art NFT platforms makes this unnecessary. Any platform that charges Artists for simply creating works is unfairly taking advantage of the people they claim to serve.

At Unique One, we don’t charge fees from Creators. Artists will receive full price for their work.

Creation Mining

Unique.One will be the first platform to reward Creators for publishing their artwork on the platform.

10% of our $RARE token supply is reserved for Creators.

Any NFT created natively on the Unique.One platform will be eligible for a reward share of $RARE tokens.

In order to prevent abuse, the maximum any address can claim will be limited to 1% of each reward disbursement period.

Transaction Mining

Users (Buyers and Sellers) of the platform will be incentivised with $RARE tokens on the basis of transaction count.

Every buy/sell transaction on Unique.One will be eligible for our transaction mining reward.

This reward will be shared amongst all the Buyers and Sellers.

In order to prevent abuse, the maximum any address can claim will be limited to 1% of each reward disbursement period.

Volume Mining

Users (Buyers and Sellers) of the platform will be incentivised with $RARE tokens on the basis of Eth transaction volume.

Every buy/sell transaction on Unique.One will be eligible for our Volume Mining reward.

Volume Mining rewards will be shared amongst all the Buyers and Sellers.

(Volume Mining will be separate from our Transaction Mining programme.)

Artist Contests

Unique.One would like to incentivise and reward high-quality artwork.

Unique.One will hold weekly Artist contests providing Artists with an opportunity to win $RARE.

1 million $RARE tokens are reserved for Artists Contests.

Winners will be decided by voting through $RARE on Snapshot or DAO voting.

This reward will be distributed to all the contest winners upon the official confirmation of the results.

Liquidity Mining

Liquidity Provider (LP) rewards incentivise the community to add liquidity to our Uniswap pool — resulting in a better trading experience for the rest of the community.

To qualify for Liquidity Mining rewards, you’re required to stake $RARE and $ETH in a 50/50 Uniswap Pool.

Our smart contract will then calculate the rewards based on the amount locked + locking period and rewards will be disbursed to your address automatically.

Liquidity Providers will share 1 million $RARE tokens for providing liquidity on Uniswap.

More details will be released closer to Launch.

Exchange LP Rewards

Unique.One recognises the issue of Impermanent Loss as a Liquidity Provider on Uniswap and other DEXs, and has allocated an LP Reward pool totaling 10% of the Total Supply to be disbursed over 5 years.

Due to advancement in technology which can potentially minimise or eliminate Impermanent Loss, we may recommend Liquidity Providers to create new pools — or to migrate onto upcoming platforms such as Polkaswap.

Bounties

Getting the community involved is one of the key factors for the success of a Crypto project and Unique.One fully supports this.

There will be an allocation for bounties to run marketing campaigns and community development programmes that can help Unique.One expand its community.

Airdrops

Launching and accelerating with a large user base is one of the priorities for Unique.One.

We shall consider incentivising various communities with airdrops and also provide a one-time airdrop to all ERC721 holders. The airdrop will be claimable through a distribution smart contract.

Distribution of $RARE

Dev Funds — 20%

DAO Allocation — 20%

Creation Mining — 10%

Transaction Mining — 10%

Volume Mining — 10%

Contest Rewards — 10%

LP Mining — 10%

Bounties — 5%

Airdrop — 5%

Annual Distribution of $RARE

We believe early adopters should be rewarded because they accelerate adoption in the critical early stages of a project.

Therefore the allocation for Year 1 is more than in subsequent years. We also expect the token price to be lower initially — hence the larger allocation.

After Year 5, when token allocation has been completely distributed, the DAO shall decide on a mechanism to sustain the project.

This mechanism can be to introduce new fees, increase the fees on the platform, or add new revenue streams — through a collective contribution system or a combination of measures.

Closing

We hope the proposed Tokenomics for Unique.One will enable the project to grow and facilitate a truly decentralised platform where the users are not gauged for profit by corporations or VCs. We believe this is necessary and is in line with the concept of decentralisation and disintermediation.

The pseudo-decentralized projects which are in fact profit-seeking corporate entities backed by VCs are not what we believe Satoshi envisioned. For this reason, we strongly feel that if we don’t try, we'll have already failed.

Before this proposal can be adopted, it must be ratified by the community by vote.

How to Vote on the Unique.One Tokenomics Proposal

Currently, the Unique.One Platform will use Snapshot — an off-chain governance voting platform popular amongst Ethereum DeFi projects — before moving to a DAO governance before the commencement of Year 2:

(i) Potential Governance Proposals that may be of interest to the Unique.One DAO will be discussed on the Unique.One Community Telegram page here;

(ii) When ready to be formally considered by the Unique.One DAO, a Governance Proposal is entered and made available for voting on Governance.Unique.One;

(iii) During the voting period, eligible $RARE holders may vote by connecting their wallet to Governance.Unique.One;

(iv) Eligibility of $RARE to vote on each Governance Proposal is based on a “snapshot” of $RARE account balances on the Ethereum blockchain at a specific block prior to voting.

(v) The official determination is by a simple majority of the $RARE votes.

(vi) There are no requirements for a quorum.

(vii) Voters are only pseudonymously identifiable by their Ethereum address.

(viii) A notice of 24 hours shall be given to the community prior to the voting via newsletter and announcements on official channels.

(ix) The period of voting will be a minimum of 3 days.

Voting for this proposal by $RARE token holders starts 00:00 UTC 22nd December 2020 and ends 00:00 UTC 25th December 2020.

UPDATE: This proposal has been passed by community vote.

When is the Mainnet launch?

Our official Mainnet launch will be on the 1st January 2021 directly following the opening of Virtual Winter Comiket 2020 (AirComike2) in Japan.

How to contact Unique.One?

Visit us here Unique.One

Talk to us here Telegram

Follow us here Twitter, Medium, Instagram

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UniqueOne Network

A Substrate-based next-generation NFT application-specific blockchain leveraging Web3.0 interoperability to augment the NFT Evolution.