3️⃣The Token Model
An overview of token utility, release schedule, allocations and use cases
General Summary
The $AMPLE token is the primary engagement layer for the Ample Protocol and its ecosystem, offering access to the Ample DAO, Reward Pools, and facilitating transaction settlements among IP owners, brands, creators, communities, investors, and fans across partner platforms and marketplaces. It powers the global decentralized network by introducing cross-functional liquidity to an otherwise illiquid market through the tokenization of intellectual property, transforming it into tangible, real-world assets. Validators bolster network stability by staking tokens, enabling cross-chain functionality and liquidity pools that ensure seamless transactions for all users.
Meanwhile, general users and brands benefit from modular tools that streamline the user experience, allowing their tokenized IP offerings to be accessible by global networks. This is achieved through a cross-chain IP management system, facilitated by chain abstraction.
Token initiatives will align with user growth, supporting liquidity pools for transaction settlements, fostering Web3 creator development, attracting enterprise brand partnerships, and building a sustainable, decentralized content creation and rewards ecosystem that all participants can engage with and enjoy(Fig. 6).
Use cases for the $AMPLE token will include, but are not limited to:
Users can be a participating member of the AMPLE DAO at different tier levels, each having varying rewards, governance, and access
Allow holders to participate as a validator or support mixed asset liquidity pools and project lockups offering stability to the launchpad and partner platform settlement pools
Act as a settlement mechanism between IP owners, brands, creators, users and other partner platforms(streaming token ecosystems and marketplace partners as examples)
Timed lockups, user acquisition burns, and partner participation incentives to foster long term growth and increased ecosystem participation
In-dApp settlements and membership features
The protocol and platform together create a circular economy infrastructure that allows tokenization plus distribution of intellectual property and/or associated royalties, rights and licensing to provide the ability to exchange partial ownership at-will plus offer alternative monetization opportunities that don’t currently exist. Supporting standards and protocols for a decentralized circular economy system create proper user incentives to foster global flywheel network effects among all participants, creating a vibrant, transparent and secure ecosystem(Fig. 6).
Tokenomics Overview
Token name: Ample
Token ticker: $AMPLE
Consensus mechanism: Proof of Stake
Initial total supply: 1,000,000,000 tokens
Current supply: 1,000,000,000 tokens
Maximum supply: 1,000,000,000 tokens
Basic AMPLE Token Distributions**
The following sections introduce the basics of $AMPLE utility, while full $AMPLE tokenomics are available in a separate token economics paper. Please contact the Ample team to learn more.
$AMPLE will have its token generation event (TGE) at a to-be-determined date, currently estimated to be in Q3 2024. At TGE, a fixed supply of 1,000,000,000 $AMPLE tokens will be minted and transferred to the AMPLE treasury. Allocated tokens will be transferred to the token vesting contract, while unallocated tokens will remain in the treasury under multi-signature protection.
The $AMPLE token vesting and release schedule are structured in such a way as to grow with the community in the coming years. As the usage of the Ample platform grows, and the number of individuals interacting with Ample increases, the token emission schedule shifts towards an increased community allotment. In this way, we anticipate the amount of $AMPLE tokens in circulation will remain adequate for usage in our ecosystem, while creating opportunities for DAO members, validators and holders to vote, support, contribute and earn higher rewards.
AMPLE Token Use Cases
The AMPLE token has various use cases on the Ample platform and at a protocol level, including but not limited to, DAO governance with tiered reward systems, liquidity provision plus staking activities, and the ability to manage offering and payment settlements between multiple marketplaces and platforms via Ample validators. Below, we will outline some of the primary use cases of the AMPLE token that will incentivize token ownership and user participation within the ecosystem. The Ample DAO will use a governance plus multi-sig system to execute functions and proposals within the Ample ecosystem.
The $AMPLE token is a non-refundable functional utility token which is intended to be used for the use cases outlined in the previous section of whitepaper. The $AMPLE token is not intended to be used as a medium of exchange accepted by the public as payment for goods or services, or for the discharge of a debt; nor is it designed or intended to be used by any person as payment for any goods or services whatsoever that are not exclusively provided by the issuer.
DAO Governance through $AMPLE Token Ownership***
Ample’s Decentralized Autonomous Organization (DAO) Governance structure allows rapid development of the Ample ecosystem by providing users with a myriad of network participation and validator incentives. These incentives foster a healthy protocol and economy ecosystem that supports increased intellectual property generation, ownership, licensing, financing and vested community interest.
One of the Ample DAO’s primary functions will be to act as a decentralized launchpad for new intellectual property projects, determining which projects receive funding, promotion, and other advantages unique to the Ample ecosystem. In order to do so in an incentivized and decentralized manner, the Ample DAO is structured into three tiers: Tier One, Tier Two, and Tier Three. Each DAO Tier has different capabilities and incentives, and access to different tiers is reliant on the number of $AMPLE tokens owned.
The tiers of the Ample DAO share rewards in the following manner:
Tier 1 - 40%
Tier 2 - 25%
Tier 3 - 10%
Ecosystem - 25%
Tier Three status is unlocked for individuals with at least 100,000 $AMPLE tokens. In this tier, DAO members can delegate tokens to validators for rewards and nominate projects that they think should receive funding or promotion within the Ample ecosystem and to Ample partners. Members of Tier Three also receive a given percentage of the royalties associated with successfully funded projects. Tier Three members can submit projects to the Ample DAO with 50% of pitching costs waived, receive a 2% LP reward percentage, and receive a 1% reward for all submitted tokenized IP assets created and distributed successfully. Tier Three members also receive 5% discounted transaction fees on the platform, receive 2% higher monetization payouts for their tokenized IP asset offerings on the platform, and receive quarterly exchange rewards based on the average number of members divided by the rewards percentage of that time period.
Tier Two status is unlocked for individuals with at least 250,000 $AMPLE tokens and offers the same incentives as Tier Three. Additionally, Tier Two allows members to become validators and cast votes regarding which nominated projects should receive funding and how much funding. Tier Two also receives a higher royalty percentage than Tier Three. Tier Two members can submit projects to the Ample DAO with 75% of pitching costs waived, receive a 5% LP reward percentage, and receive a 2% reward for all submitted tokenized IP assets created and distributed successfully. Tier Two members also receive 10% discounted transaction fees on the platform, receive 5% higher monetization payouts for their tokenized IP asset offerings on the platform, and receive quarterly exchange rewards based on the average number of members divided by the rewards percentage of that time period.
Tier One status is unlocked for individuals with at least 500,000 $AMPLE tokens, offering the same advantages as Tiers Three and Two. Additionally, Tier One members can make the final decision on whether or not a project that received votes from other DAO members should receive funding or if the amount of funding should be modified. Tier One members also receive a higher percentage of royalties than any other DAO tier. Tier One members can submit projects to the Ample DAO with 100% of pitching costs waived, receive an 8% LP reward percentage, and receive a 4% reward for all submitted tokenized IP assets created and distributed successfully. Tier One members also receive 20% discounted transaction fees on the platform, receive 10% higher higher monetization payouts for their tokenized IP asset offerings on the platform, and receive quarterly exchange rewards based on the average number of members divided by the rewards percentage of that time period. Tier One members also enjoy the ability to submit burning, lockup plus LP proposals and have governance voting rights for the Ample DAO pitch submission and funding approval system.
Ecosystem Support rewards paid back to the ecosystem will be used to foster web3 user growth, launchpad support, and marketing support for DAO members and new ecosystem projects.
We anticipate that access to the Ample DAO will be a powerful incentive for $AMPLE token ownership. By joining an Ample DAO Tier, token holders will gain influence over the Ample protocol plus ecosystem and have access to support from DAO Treasury and Marketing initiatives, empowering them to make the decisions that they think will bring the most value to the Ample ecosystem and the DAO. In this way, Ample encourages token holders to play a direct role in the DAO trajectory and development, accelerating the Ample ecosystem adoption worldwide. The Ample DAO manages IP provenance, a global directory, aggregated engagement analytics, a catalogue of available IP and global framework supporting accessible, secure and protected IP.
Reward Pools and LP token lockups for $AMPLE
Ample users who do not wish to be validators, but wish to contribute their funds to reward pools can earn percentage rewards on their pledged funds. By rewarding users for keeping their assets on the Ample Platform and accessible via reward Pools, Ample can incentivize token ownership in a way that increases the activity on the Ample Platform, supports Ample DAO ecosystem initiatives, provides development grants and supplies liquidity between the Ample Platform and other partner distribution platforms to create a seamless user experience.
When an IP project has been successfully funded, or an ecosystem proposal has been approved, the Ample DAO will open up LP token lockup offerings for specific productions to general token holders and DAO members for LP rewards, which will be higher than general user LP rewards. For example, if there is a film in production with a budget of $1M, the Ample DAO would open up LP token offerings of 25% of the approved budget (not a fixed number, this is just an example), offering mixed asset collateral support through the different phases of production. This token lockup acts as a safety net for projects that occasionally have additional budget needs or need additional funding at any point during development. Automated mixed asset pools improve the Ample token stability and the support pool stability for IP development and launch processes. See illustration below for an example of this mixed asset pool (Fig.10)
Sticking with our example of a film, suppose the production team requests additional support during the production process. In that case, LP holders can decide if they want to continue to support the production, receiving increased rewards and IP sharing opportunities. Alternatively, they can choose to remove their LP token from the production pool, and receive all of their original pledged LP token value minus 1% of their contribution (which goes to the Ample DAO Treasury) and surrender any outstanding rewards.
Example LP Token creation table for production support lockups
Another token lockup function will be a simple ecosystem lockup for future partner, user, and content acquisitions. These tokens will only be released upon DAO approval and a portion of all rewards that go back to the Ample DAO will go into this ecosystem lockup treasury for future use cases. These lockups will be time and initiative focused to encourage user growth and help stabilize the token ecosystem as needed.
$AMPLE Token Burning
Token burning provides a pathway for $AMPLE tokens to be permanently erased from existence, acting as a deflationary pressure that pulls tokens out of circulation. $AMPLE tokens will be burned from the Ample ecosystem treasury and never from the users or holders of the token. Burning initiatives will be used over time to balance token scheduled releases and voted on by the DAO on an annual basis to promote stability based on organic ecosystem growth.
There are 3 main burn functions implemented in the Ample ecosystem:
Flat burn percentage
New wallets and users
Token surrenders
The first burn function will be a flat percentage token burn based on total token transaction volume per quarter at which $AMPLE tokens are burned will be a flat .5% of the total token transaction volume(See Fig.11). The Ample DAO will reevaluate the flat burn fee based on ecosystem stability, lockup amounts, total transaction volume and user growth initiatives.
The second burn function will come from new wallets and new users that remain active on the platform for a minimum of 60 days with a to be determined minimal transaction volume to ensure the user is indeed a genuine user of the platform(See Fig.12). We believe this creates an incentive to bring new users to the platform that will become longer term users and increase transaction amounts on the platform while increasing exposure to projects and content for our launch partners and creators.
The third burn function, as previously mentioned, will be a burn of token surrenders from early stage grant productions that fail to complete their development milestones. The projected rewards payouts based on production phase that would have been distributed to the creator upon successful milestone completion, will be burned from the ecosystem treasury.
It is our belief that token burning will bring users and additional token holders to the Ample platform and ecosystem, as well as encouraging growth and awareness of the ecosystem as a whole. Lockups and token surrenders additionally create an incentive to perform, engage with and support the ecosystem and Ample's launch partners.
Settlement Layer with Other Media Platforms and Marketplaces
Due to the growing popularity of transmedia, in the case of any media and entertainment IP managed or launched from our platform, Ample Protocol will facilitate mutually beneficial bridges between platforms, allowing maximum distribution and monetization for our partners. Ample will pursue media distribution and access partnerships with any other competing Web3-friendly platforms and create pathways for our users to interact with the content and tokens held in their ecosystem platforms and marketplaces. LP token pools between platforms would benefit both token ecosystem supporters and their users. In these instances, $AMPLE tokens will act as a settlement layer between cross chain ecosystems, allowing token holders to interact with other marketplaces and platforms seamlessly. See Fig.13 for a visualization of this process.
In dApp Settlements and Membership Features
Within the Ample ecosystem, users of all types will be able to use their Ample tokens to have access to the DAO(upon holding tiered amounts), reward options, streaming options, and collector pools. Users can earn their way to tiered membership, allowing them to have an even more important role in supporting the ecosystem. The in-dApp use of the $AMPLE token will allow seamless interaction between users within Ample's ecosystem, as well as partner marketplaces and content platforms.
The $AMPLE token is a non-refundable functional utility token that will be used for the cases outlined in the previous section of this token economics paper. The $AMPLE token is not intended to be a medium of exchange accepted by the public as payment for goods or services or for the discharge of a debt; nor is it designed or intended to be used by any person as payment for any goods or services whatsoever that are not exclusively provided by the issuer.
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