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OS Economics
Holders directly govern its finances and development, and in an entirely on-chain, decentralized and granular way. To learn about the structure of the EthOS on-chain organization and how its governance works, see here.
The economics of $OS is the system of interactions in the EthOS ecosystem that take place via the organization's Treasury Splitter, which every quarter (in blocks) distributes earned funds among its four Public Treasuries:
- 1.The Dividend Farming Treasury
- 2.The Investment Manager Treasury
- 3.The Delegation Grants Treasury
- 4.The Main Treasury
These are all governed exclusively by $OS holders.
This page explores how this system works in detail.
The total initial supply of $OS is 1,000,000. This is increasing via inflation, which has begun at 8% (80,000) of that initial supply per annum.
Inflation is an important source of revenue for the economy.
$OS holders have exclusive governance rights over inflation, and can change the rate at any time among several options that range between 0.5% and 15%. The EthOS team has no such rights.
To learn more about how inflation is governed by $OS holders, see here.
Inflation events happen once a day, and the newly minted $OS is distributed as follows:
- 30% as Farming Rewards$OS holders can farm this $OS by providing liquidity to the OS-ETH pool on Uniswap v3, which can be done through the EthOS interface.
- 25% sold for $ETH for the EthOS Private TreasuryThis is the EthOS team's Private Treasury. It funds our research and development of the EthOS ecosystem.
- 45% sold for $ETH for the four EthOS Public TreasuriesThis $ETH is sent to the Treasury Splitter, which (as mentioned above) distributes it every quarter among the four public EthOS Treasuries—each governed by $OS holders—as follows:
- 27% to the Dividend Farming Treasury
- 25% to the Investment Manager Treasury
- 40% to the Delegation Grants Treasury
- 8% to the Root Treasury
Alongside Inflation earnings, the Public Treasuries have additional sources of revenue:
- 1.Business Model Fee earnings (L1 and L2)
- 2.Investment Management earnings
EthOS charges fees for the use of the code Factories it provides to the platform both on Ethereum L1 and on L2s (right now only Optimism):
- The Factory of Factories (FoF)
- The Covenants Farming Factory
- The Fixed Inflation Factory
Fees can be paid in one of two ways:
- 1.As a regular fee
- 2.By burning $OS
Earned fees are sent to the Treasury Splitter for the next quarterly distribution.
Fee rates on L1 Factories are governable by $OS holders at any time, allowing them to rapidly and dynamically adjust to fluctuating market conditions.
- FoF Fee (token) Some Factories take a fee as a percentage of the value that is transacted when clones of their model contracts are used. The FoF Percentage Fee is a fee of that fee. The current rate is 0.08%.
- FoF Fee (transaction) Some Factories take a fee as a burn of a specified token whenever they are used. The FoF Burn Fee is a percentage fee of that fee. The current rate is 0.08%.
- Covenants Routine Fee (transaction) The Routine Factory takes a fee as a percentage of the value that is transacted when clones of its model contract are used, including ours. The current rate is 0.08%.
- Covenants Farming Fee (Transaction) The Farming Factory takes a fee as a percentage of the value that is transacted when clones of its model contract are used, including ours. The current rate is 0.08%.
- Covenants Farming Fee (Burn) The Farming Factory takes a fee as a burn of $OS whenever clones of its model contract are used, including ours. The current rate is 5 $OS. Users of the Farming Factory can choose to pay either the Percentage Fee or the Burn Fee. To learn more about how fees are governed by $OS holders, see here.
Fee rates on L2 Factories are fixed: the Factory-of-Factories, Farming Factory and Routines Factory charge a fee of 0.08%.
These fees are also sent to the Treasury Splitter of EthereansOS Organization on Ethereum (L1).
Colonies allows fees to be moved from L2s to EthereansOS Organization on L1. To learn more about how Colonies work, see here.
As mentioned, 25% of the EthOS $ETH earnings dedicated to the Public Treasuries are distributed by the Treasury Splitter to the Investment Manager every quarter. This $ETH is predominantly invested in a basket of four tokens, which to begin with are $ENS, $GTC, $DPI and $MVI.
80% of the ETH is invested in each. The remaining 20% is sold for $OS, which is instantly burned, serving as a deflationary countermeasure. Then, once a week, a percentage of the four tokens is sold back for $ETH, which gets sent to the Treasury Splitter for the next quarterly distribution.
$OS holders can vote at any time to change the four tokens that comprise the basket, as well as the percentage of each that is sold each week.
To reiterate, the Treasury Splitter distributes the EthOS organization's $ETH earnings each quarter to the four Public Treasuries, and these earnings are distributed as follows:
- 1.27% to the Dividend Farming TreasuryHolders of at least 5,000 $OS can farm this $ETH by staking it in the OS-ETH liquidity pool on Uniswap v3. These dividends play a very important role for EthereansOS; they incentivize its stakeholders to help sustain the economy, rather than encourage short-term speculation.
- 2.25% to the Investment Manager TreasuryThe Investment Manager sells this $ETH for four tokens (plus $OS), as described above.
- 3.40% to the Delegation Grants TreasuryAll Delegations that receive the staked support of $OS holders earn this $ETH as grant money, on a pro-rata basis, to spend on improving the EthOS ecosystem.
- 4.8% to the Root TreasuryThis $ETH is reserved for future emergencies and to fund new features.
Last modified 3mo ago