Swapping BONO to ONO
TGE (token generation event), the moment we've all been waiting for, is around the corner. It is going to be the moment where onocoy will start giving out ONOs instead of BONOs, which was the test token for early contributors.
How can early miners exchange their BONOs to ONOs and how do they benefit?
💡 Here are the most important points in short:
The average exchange rate between BONO to ONO is 1:8. That means you get 8 ONOs for 1 BONO on average over time.
The longer you wait, the higher the exchange rate! The exchange rate will increase over time. That means, people who wait will benefit more.
There will be a swapping tool in the onocoy explorer. Using this, you will be able to select the amount to swap from BONO to ONO.
This approach is in everybody's best interest as
it rewards the early miners for their loyalty extraordinarily,
gives miners full flexibility to choose when they want to swap,
avoids a token supply shock at TGE and thus supports price stability at ONO.
How does the mechanism behind the swapping work exactly?
onocoy creates an ONO pool to reward BONO holders (especially early miners)
We fill the pool with 8 times more ONO than there are BONOs in circulation
4 million ONO (~19%) from this pool is unlocked at TGE, the rest will be unlocked continuously with daily unlocks
The unlocking schedule corresponds to a halving over 3 years (or about 21% per year)
BONO holders can exchange their BONO for ONO at any time
The swap rate is determined at conversion time by dividing the number of unlocked ONO in the pool by the number of circulating BONO
Converted BONO are burned, while the ONO are taken out of the pool and transferred to BONO holders, with the ONO being unrestrictedly tradable.
How does the exchange rate increase over time?
The conversion rate is determined by the number of unlocked ONO divided by the number of circulating BONO. This means two things:
As more ONOs will be unlocked over time, more ONOs will be available to be swapped and the conversion rate increases.
As more and more BONOs will be burnt, the rate of ONOs per BONOs will be higher, i.e. the conversion rate increases.
Let's look at an example how it could play out. For that, we need to assume a few things.
Let's assume that at TGE, 20% of BONOs will be exchanged immediately and after that, 20% of the remaining BONOs each year. In the following graph, you can see how the exchange rate will evolve.
Using these assumptions, the exchange rate is growing continuously every year. That means, those who wait will get a more favourable exchange rate than those who swap immediately.
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