Deflationary structure

Growth DAO has established a deflationary tokenomics model, with a maximum supply of 100m GRWTH tokens. We believe this will enable us to align incentives between startups, experts and investors over the next 10+ years. Fostering a healthy balance between demand and supply factors will be important, especially given the ‘lumpy’ nature of startup returns.

Demand Levers

The service profit from Growth Team fees will provide a reliable and scalable income stream. At 20% of Startup Client Account fees, there will be sufficient profit to fund community growth initiatives. Initiatives such as marketing and branding will exponentially increase demand for startups to join. Additionally, our community incentives will enable members to earn GRWTH from referrals, which we believe will significantly ramp up startup demand.

When expert applications jump, we will vote on the introduction of purchasing GRWTH before being accepted into the community. Additionally, GRWTH will be needed to stake against projects being worked on. This will lock in GRWTH tokens and increase the demand from the expert community.

Finally, the Treasury will accept direct investment upon a successful community vote. As the market capitalisation of GRWTH increases, this will increase the demand from investors to take this route to acquire GRWTH. Nonetheless, the contributions to the Liquidity Pools will increase the value of GRWTH and generate more demand. Especially for investors aiming to lock in principle for 10+ years.

Supply Levers

On the investor side, GRWTH will be rewarded for staking LP over the long term, as determined by the APY stated in our smart contracts. The longer the LP tokens are staked for the more APY that is rewarded, thus incentivising investors to have a long investment horizon (5-10 years). The total investor token supply is ultimately locked to 25m tokens. GRWTH will be exchanged by the Treasury to the Liquidity Pool as voted on by the community. Once the capital principle is returned to LP holders, 20% of the profits will be returned to the Treasury and used to burn GRWTH. This will be upon successful startup exits and likely to create significant jumps in the GRWTH token price. GRWTH will be freely traded on a decentralised exchange, in a USDC:GRWTH pair.

More importantly, a proportion (c.10%) of the service profit will be used to burn GRWTH. This will create a reliable growth in GRWTH token price and consistently return value creation to token holders from our profits.