Cubist Collective Tokenomics

Why use a token?

The long-term ambition of the Cubist Collective is to create a Decentralized Autonomous Alpha Generating Machine. We want to create valuable insights both for our members, as well as those outside of the community.

In order to ensure that top contributors are adequately rewarded, we are committing to seed our rewards pool with 5000 USDC weekly. We also want to tie rewards to the actual value generated by the community and give our early supporters (seed investors) maximum exposure to the success of the protocol. By minting our own token, we can ensure that our members receive their fair share of value from the protocol as it expands in scale.

This way, everybody wins. Passive holder value is generated by both daily emissions and through community-generated insights. Active contributors have the additional bonus of a larger allocation of $CUBIST based on their performance.

Deflation and Velocity of Money

Deflation, the reduction in price over time, is often confused with scarcity, which can be the result of burning tokens. Sometimes the two have similar effects, sometimes not. A healthy ecosystem should have a low velocity of money. This means people do not only buy the token to make a transaction but actually hold it over time.

If there is little incentive to hold tokens, then people gaining tokens will quickly sell. Likewise, those who need the token for a transaction will buy but then immediately spend it. These are both cases that have a high velocity of money. When the velocity of money is higher, burning to reduce supply does not have much impact on the price: A large proportion of the tokens will be transitioning through the market regularly so burning is “a drop in the sea” unless it’s a large proportion of the tokens.

In order to reduce the velocity of money, many ecosystems use staking. However, staking with yield generation also causes an increase in token supply. Another option is to give the tokens more purchasing power over time.

The Cubist Coin is intended to be deflationary by a price decreasing mechanism. Over time, the price of services purchased with $CUBIST can decrease, increasing the addressable market for the Decentralized Autonomous Alpha Generating Machine. This both reduces the velocity of money and increases the value of the tokens.

Earn

The genesis Cubist Collective NFTs can be staked to earn 1 $CUBIST per day.

The Community Incentive Fund will continuously reward contributors with $CUBIST tokens. The specific mechanisms will evolve over time. At a later stage, the community will govern how to allocate the fund across the different activities.

At launch or soon after, the opportunities to earn will be:

Contribute to Discord — Help our members stay up to speed with what is happening on the market, post insights, and share alpha. Any contribution that the community values will be rewarded.

Join in the prediction market — We will set up a simplified prediction market where members can select whether they expect the floor of different NFT projects to increase or decrease in the near term. Or for new projects, they can predict whether the floor will be above mint. Entering the prediction market will be free and the winners are rewarded from the Community Incentive Fund.

Competitions and Gamification We will host regular competitions where, for example, additional prizes can be won by members who performed best in the prediction market or thse who contributed most to the community over a longer time period.

Use

Pre-mint

  • Before the main launch of the Cubist NFTs: The very first people to be able to mint will be $CUBIST holders. Before we open for Whitelist mint, it will be possible to mint Cubist NFTs for 500 $CUBIST.
  • Immediately after mint: The primary means of compensating contributors will be through our guaranteed 5000 USDC weekly allocation to the Community Rewards Pool. During this phase, the system will be tweaked as needed.

Customization

We will create opportunities to personalize your NFTs using $CUBIST tokens. We have heard a lot of amazing community suggestions regarding this, and have been taking notes.

Bounties for requested projects

Interested in getting a summary for a project you invested in?, Or want to start a prediction market for a specific project? Post a bounty to incentivize other members to look deeper into projects.

Prediction markets

Entering the prediction markets will be free and funded by the protocol for Cubist NFT holders. We are also looking into the possibility of members increasing their stake by betting $CUBIST in the markets.Those outside the community may take part by buying and betting $CUBIST tokens. This can be thought of as “sports betting on NFT prices.”

Growth

The Cubist Collective is a network that benefits from a large community sourcing alpha. The more active community members we have, the more collections we can cover, and the better we can tap into the wisdom of the crowd and achieve diversity of thought. Since our initial mint will be significantly smaller than the common 10k collections, there is plenty of room to grow. Once we see demand for member benefits surpass the supply of NFTs, we will release a new collection that gives community access just like the original generation. Future generations will be mintable primarily with $CUBIST.

DAO 2 DAO

As our reputation spreads, other projects will want representation within our community. They will want access to our insights, or use tools for their members (they have already asked). We are looking at offering these as subscription services payable with $CUBIST.

Monetization

As the Collective generates high-quality crowdsourced insights, the demand for consuming this alpha will steadily increase. At this stage, we will launch a subscription service for those not holding our NFTs. We plan on making this subscription payable with $CUBIST, directly linking earnings to the value of the insights generated.

In order to make the NFTs a clear differentiator, the subscription service will only give access to the community highlights for the collections held within the subscribed wallet(s). The subscription will also not give access to the full Discord discussions nor the community experts.

Token Allocation

Cubist NFTs: 25% Yields 1 $CUBIST per day for staked NFTs

Community Fund: 50% Incentivizes community contributors as discussed above. Vests at the rate of the Cubist NFT rewards.

Liquidity: 10% Provides market liquidity for the token

Project reserve: 10% For unforeseen circumstances where additional tokens may be required or to fund specific developments where additional tokens are needed

Team incentives: 5% Paid team members are excluded from receiving payments from the community fund. This allocation will primarily be used to incentivize new hires to build the community.

We will mint enough tokens to last for four years of $CUBIST yield for the NFTs. This gives us a total supply of 29.2M tokens.

Next steps?

The incentives for community participation will evolve over time as we grow and learn together. We will build together, and the community will have a large impact on how the Community Incentive Fund is allocated.

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Cubist Collective

Cubist Collective

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Cubist Collective is a community-driven portfolio management protocol built on the Solana blockchain and powered by a unique contributor rewards program.