$AMT

Governance

$AMT is Amulet's governance token. It primarily gives $AMT token holders the right to vote and participate through governance in the protocol's development and initiatives such as but limited to:

  • Treasury utilization and rewards distribution

  • Claim validity

  • Target capital requirements

  • New products listing

  • Treasury buyback thresholds

  • Determining future protocol objectives

Value Accrual

Given the nature of Amulet's business, several features have been adopted from leading DeFi protocols in designing $AMT to enable robust governance and attract patient capital to the protocol. Long-term holders will be able to enjoy certain features and benefits such as:

  • Boosted rewards through vote-escrowed $AMT ($veAMT).

  • Revenue sharing.

  • Eligibility for Amulet's membership and loyalty program.

More details on Amulet's $veAMT mechanics:

  • $AMT holders are able to lock their $AMT and receive $veAMT for periods of e.g., 1 month, 6 months, 1 year, or a maximum of 4 years.

  • “Points” will be allocated to $veAMT holders in proportion to their staking periods. These points are used to determine the allocation of additional rewards on top of the usual base $AMT rewards. The highest rewards will be distributed to the longest holding periods.

  • Points allocated to $veAMT holders will decrease linearly over time with the rewards adjusted accordingly.

To illustrate how the rewards system may work under $veAMT, assume base rewards to be 100,000 $AMT per day and $veAMT rewards to be 200,000 $AMT per day. Total $AMT staked in the $AMT pool is 40M, 50% of which is currently locked (20M). A new user adds and locks another 10M $AMT in the $AMT pool for 4 years (i.e. the maximum locking period). In this scenario, the rewards distribution will be:

Users who lock their $AMT tokens with Amulet potentially accumulate significantly higher rewards than if they had simply staked for base rewards. Amulet also plans to accrue more value back to $AMT token holders and price by executing buyback operations, using treasury funds to purchase $AMT on open markets and re-distribute them back to $AMT stakers and lockers. Hence, with the value of $AMT rewards being tied directly to the protocol's performance over time, long term members who hold the most $AMT tokens benefit the most from Amulet's investments and core revenue stream.

Distribution Schedule

The initial total supply of $AMT is set to 1,000,000,000. The majority of $AMT's supply (68%) is reserved for business incentives and ecosystem growth, whereas the rest are for fundraising, liquidity bootstrapping, and team incentives. The distribution details are set out below:

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