August 18th, 2pm UTC is a big moment for the Alpha Wolves community, as anyone who stakes ALPHA from that moment onwards will get BETA tokens! Beta Finance (BETA) is the first Alpha Launchpad project.
Haven’t staked ALPHA yet, stake here!
We are as excited as the Alpha Wolves community, so let’s take a look at how BETA tokens will be distributed to ALPHA stakers.
Overview of how BETA will be distributed to ALPHA stakers
A significant portion of BETA token supply will be distributed to users who stake ALPHA on Alpha Tokenomics.
Assuming that 60M BETA tokens will be distributed to ALPHA stakers. 30M BETA tokens will be unlocked at the end of the 3rd month (specifically 90 days) after BETA lock-up period begins, or Aug 18th, 2pm UTC.
10M BETA tokens will be unlocked at the end of the 4th, the 5th, and finally the 6th month. This means the allocated portion of BETA tokens will be distributed to ALPHA stakers over the span of 6 months.
Note that stakers don’t need to stake for the full 6 months to get BETA tokens. By staking ALPHA, you will get BETA and upcoming Alpha Launchpad tokens that launch during the time you stake.
We believe that this distribution mechanism is ideal for both Alpha Launchpad projects and ALPHA stakers. ALPHA stakers are heavy DeFi users and DeFi maximalists with long-term investment horizons. For reference, ~138M ALPHA (~39% of circulating supply) is being staked at the moment. By distributing Alpha Launchpad project tokens this way, projects get an opportunity to tap into this large community and grow their heavy users and long-term investors.
On the other hand, this distribution mechanism gives ALPHA stakers a decent time to study Alpha Launchpad projects, become heavy users of the protocols, and grow exponentially with these high quality projects while staking ALPHA.
Details & example of how BETA distribution to ALPHA stakers works
What are the factors that impact how many BETA tokens and upcoming Alpha Launchpad project tokens each ALPHA staker gets?
- Factor 1: Number of ALPHA staked
- Factor 2: Length of time that you stake
Is there a minimum number of ALPHA tokens you need to stake to get BETA and upcoming Alpha Launchpad project tokens?
- No, you can stake any number of ALPHA token.
Is there a minimum amount of time you need to stake ALPHA tokens to get Alpha Launchpad project tokens?
- No, there is no minimum amount of time as well, but do note that the unstaking period is 30 days.
2 factors that impact how many BETA tokens you will receive
The 2 main factors that impact how many BETA tokens you will get upon staking ALPHA are 1) number of ALPHA tokens you stake and 2) length of time you stake them for.
Factor 1: How does factor 1 impact the number of BETA tokens you get?
Factor 1 is simple. The more ALPHA you stake, the more BETA tokens you will receive.
Factor 2: How does factor 2 impact the number of BETA tokens you get?
For factor 2, we are incorporating the time element by applying a real-time weighting system.
Let’s say you stake 100 ALPHA on (or before) Aug 18th, 2pm UTC, these 100 ALPHA will get 1x weight right away.
30 days have passed
- These 100 ALPHA will be weighted at 1.44x. This means that our system will understand that you stake 144 ALPHA.
60 days have passed since Aug 18th, 2pm UTC (when you first staked)
- These 100 ALPHA will get 2.08x weight, and our system will understand that you stake 208 ALPHA.
90 days have passed since Aug 18th, 2pm UTC (when you first staked)
- These 100 ALPHA will get 3x weight, and our system will understand that you stake 300 ALPHA.
The maximum weight each ALPHA staker gets is 3x.
On a high level, this means that if you stake after Aug 18th, 2pm UTC or if you withdraw ALPHA before the 6-month BETA distribution period ends, then a part of your future allocation will be allocated to those who are still staking.
Example of how real-time weighting system impacts the number of BETA tokens you receive
Applying this real-time weighting system means that if you stake after Aug 18th, 2pm UTC, you will be playing a catch-up with everyone who has staked since Aug 18th, 2pm UTC because everyone else’ weight will be larger than yours.
Also, this means that if you withdraw before the 6-month BETA distribution period ends (starting Aug 18th, 2pm UTC), then a part of your future allocation will be allocated to those who are still staking. Why is this?
- Because the weight for those who continue to stake will increase, allowing them to get more BETA tokens
- Because the total number of BETA tokens allocated to ALPHA stakers remains the same, while the number of ALPHA staked decreases (because you withdraw), so those who continue staking will get more BETA.
Let’s go through an example below.
Example: Alex stakes 100 ALPHA on or before Aug 18th, 2pm and doesn’t withdraw. Bob stakes 100 ALPHA on Sep 17th (30 days after) and stakes for only 30 days (withdraws on Oct 17th). Assume that 10M BETA is distributed to ALPHA stakers per month. Assume Alex and Bob are the only stakers.
- Alex gets 10M BETA.
- 100 ALPHA staked by Alex is weighted at 1.44x at the start of month 2.
- 100 ALPHA staked by Bob is weighted at 1x at the start of month 2.
- At any point in time during month 2, Alex’s weight will be 1.44x larger than Bob’s.
- Alex gets ~5.9M BETA (1.44 / 2.44 * 10M).
- Bob gets ~4.1M BETA (1.00 / 2.44 * 10M).
- If we didn’t have this real-time weighting system, both Alex and Bob would get 5M of BETA tokens each.
- Alex gets 10M BETA since Bob unstaked already.
So, to maximize the number of BETA tokens you can get, you should stake ALPHA for the whole 6-month period, starting on Aug 18th, 2pm UTC.
Alpha Launchpad will continue to multiply value accrual for ALPHA stakers. With high quality projects being incubated at the highest standard, ALPHA stakers can look forward to learning more about these projects and in turn receive their fair share of tokens/protocol fees.
While we are ramping up on launching Beta Finance on Alpha Launchpad, we have already onboarded 3 more very high quality projects that will be incubated by and launched on Alpha Launchpad. Stay tuned as we are announcing our second Alpha Launchpad project very soon!
About Alpha Finance Lab
Alpha Finance Lab is a DeFi Lab, and on a mission to build