The Indigo DAO would receive half of all ADA/INDY LP tokens. The end result is similar to the Initial NFT Offering idea where Indigo would sell NFTs to fund both sides of a LP.
In both cases the Indigo DAO would end up with LP tokens that could either be kept in the DAO Treasury or distributed to the Indigo community. The Taste Test method however is more streamlined.
Regarding Yield Farming idea, a good price discovery event should stabilize the price.
If we set up a LP for ADA/INDY then we have to decide what to do with the LP tokens. We can either:
I can elaborate more on the fair post-launch airdrop idea.
Let’s look at the airdrop core values you defined:
A post-launch airdrop meets all of these values. Furthermore:
The core idea of a pre-launch airdrop doesn’t really make a whole lot of sense which another reason we opted for a post-launch airdrop. INDY is a utility token. It has no usefulness before Indigo is launched. After the product is launched then INDY can be utilized within the protocol. That’s when we’d distribute out the token as a reward and as part of a marketing campaign so that even more people can use the protocol.
Thanks for the detailed explanation! I appreciate the time everyone takes to contribute and inform here.
Can the taste test be gamed by whales for example to receive a disproportionate amount of INDY?
Prism protocol from the terra Luna ecosystem used this idea for their launch with slightly different parameters. Here’s their breakdown of how it works. In my opinion, 10 days is a very long time to lock up ppls money for price discovery. Ppl would likely start participating near the end of the 10 day period.
https://prism-protocol.medium.com/prism-launch-announcement-7c2c92448b70
Traditional finance typically locks up money for months for price discovery events. It’s like that most people involved in price discovery events have a much longer investment time horizon than 10 days.
The money also isn’t locked in a Taste Test. You can deposit or withdraw at any time during the 10 days. SundaeSwap team have talked about disincentivizing people from participating right at the last minute. We don’t know though what their final implementation will be.
It’s all proportionate
TBH I’m interested in the pre-launch airdrop plan if the indigo plan uses the sundaeswap taste test, it will reduce the risk of being dumped by the airdrop recipients, instead of selling the token holders it is likely to be involved in providing liquidity on the sundaeswap taste test. Honestly I personally would prefer to be involved in the taste test
Ah this right here was the gap in my knowledge about the SundaeSwap Taste Test! Thank you very much for explaining the whole mechanism in so much detail, this definitely does change everything. I do agree now that this would have the same effect as the INFTO model except that that is indeed a lot more streamlined.
This specific point regarding INDY having no utility before launch is precisely why I’m such a big fan of having an Indigo Yield Farm portion as well. In the same way that LQ had no utility shortly after the airdrop besides price discovery, as soon as SundaeSwap announced you’d be able to YF on their platform with LQ, demand for the token immediately sky rocketed and has more than doubled in price since then.
In regards to the post-launch rewards reasoning, I’ll say that I do understand the motives a lot better now after your clarifications.
Do you guys have any ideas as to how to distribute to users of the platform? I know UNI just straight sent 1200 tokens to any address that had ever interacted with the protocol, meaning that people with multiple wallets received the airdrop several times. Would it be possible to base this metric on the amount of fees each wallet has paid to the protocol? That way, the people who have used the protocol the most, and have therefore paid the most fees, should receive a bigger and more proportional cut of the post launch airdrop.
Alright, I get it now. This is essentially IOG Charles’ reason for Rogen after Dapps mantra, in that the best advertising happens when the protocol can actually capture an audience much better with a tangible product to provide utility right away.
Yup I’m sure excited to see how DripDropz evolved or perhaps we’ll even see new competitors innovate on the idea.
To summarize my updated opinion on the matter, I have once again changed my mind quite a bit and propose the following:
If this whole rewards program in started around 60 days before the protocol launches on mainnet I think we could garner a ton of attention and build hype within the Cardano ecosystem to rival SundaeSwap’s monumental launch.
Yes, we have different ideas like giving to existing INDY holders, to wallets with the most activity associated to the protocol or simply to any INDY holder who is using a particular DEX. If we went this route we’d also have a whole year to come up with different ideas for the exact mechanism of distribution.
This would likely be difficult to track down but since all the data is public on the blockchain it’s feasible.
Really impressed by this write-up, thanks a lot 
Thank you for your fantastic write up.
I would add Fairness to your list,Just to keep in mind that we’d like the project to keep on a fair footing:
Indigo DAO: Airdrop Core Values
Keeping that in mind, I like the idea of a Sundaeswap taste test compared to yield farming. You mentioned in one of your responses that Yield farming is the highest contributor to profitability in defi but I’m not sure that would be the case for Indigo Protocol because I’m not sure about the profitability over a period of time due impermanent loss. I know the yield percentage for the LQ/Ada started out quite high but it´s dropped quite a bit since the past few days and is currently sitting at 186% which is of course is great but the impermanent lossis big factor because of Liqwid’s rising value. Considering Indigo’s great tokenomics is quite similar to Liqwid’s, I believe liquidity providers would most likely experience it too.
In any case I defer to the core founding team to decide what would work best in terms of the Indigo Protocol market launch considering they’ll be most aware of the resources and legalities.
very exciting, wonder if I make the discord snapshot 
I think airdrops are different from user rewards, token holders in the future might get different benefits from airdrops, or will you give both options?
We have no concrete plans right now. We’ll wait for the community to vote and then decide next steps.
This is a valid point and could cause legal consequences for the dev team. I wasn’t part of the discord group but I strongly agree those people should be rewarded.
I also want to say how much I appreciate Blocks taking the time to really think deeply about this. It is encouraging to someone who just discovered this project to see this level of activity.
In the same vein as the rest of Block’s proposal you could still do this with the nft drop. Just like CCvault sold nfts to support their project and add a multiplier. Discord members could automatically recieve the rare, max multiple, nft. For those wanting to come in to support the project they would have to buy more NFTs to recieve the same multiple. This rewards the very earliest adopters but also incentivizes the next wave of adopters to put skin in the game.
Thanks for the great summaries. I love to read them. Appreciate it!
Okay so it is unfair to many who joined the discord late but that’s life. Good luck to the team for thé project.
Thank you very much for such detailed explanation!
