The Idle Finance team has released all the updates about the protocol governance through their IDLE token, explaining how it will be distributed:
We are glad to unveil our plans for $IDLE and its governance applications.
This is a step towards a fully decentralized protocol, embracing an impartial and trust-minimized way to supervise and operate it.
— idle (@idlefinance) October 5, 2020
Before going into governance, let’s remember that this platform, from the Italian heart, allows to maximize yield farming based on the underlying protocols that we find on the Ethereum blockchain, and all those who provide a lending system in various pools, such as Compound, Aave and others, and the same provide an interesting and very convenient APY to deposit funds and get interest on our cryptocurrency (a detailed analysis on this protocol is in the book Mastering DeFi).
The team has focused on governance and wants to move it from private and centralized to decentralized and public so that the community itself will decide about the protocol and all the updates to be made, with the transition from the end of October to the beginning of November.
IDLE, the governance token of Idle Finance
Obviously, to have such governance you need a token, which in this case is an ERC20, which takes the name of IDLE, and will be distributed, in 2-3 years, directly to users of the protocol, also divided among previous investors, for a total of 13 million IDLE tokens.
The distribution will be done in the following way:
- 38% to the liquidity provider fund;
- 2% to the fund of the initial liquidity providers;
- 11% to the ecosystem fund;
- 28.05% to the current and future team;
- 5.95% to pre-seed investors;
- 15% to seed investors.
As we said, the token will be distributed in that way and no token ICO/IDO will be made. In addition, the distribution of tokens will also be made to all users who have used the platform in the past, already active in August 2019, and therefore we will have a retroactive system for the distribution of 200 thousand tokens.
Through this governance token, users will be able:
- adjust fees;
- add more tokens and other protocols;
- integrate different strategies and more.
It is in practice a vision left in the hands of users.