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Initial Liquidity Offering (ILO)

The distribution of Owy ensures a fair and decentralized allocation, with the majority available to the public through Public Seed Funding (PSF).

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Highly Recommended to Read More on Public Seed Funding (PSF).

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Allocation

  • At launch, Owy will distribute its maximum possible supply of 69 million. The token contract does not include a mint function, ensuring that no additional OWY can be produced.

  • 90% of the maximum supply, equivalent to 62,100,000 OWY, will be distributed to the public.

  • The remaining 10% of OWY will be allocated to the project's core contributors in recognition of their development efforts and contributions, vested for 1,000 days.

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Limitation

As the project lacks initial investors and funds to provide liquidity for OWY, the entire public allocation will be dedicated to Public Seed Funding (PSF) with a limited-time purchase window.

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Public Launch

  • Apply to 90% of the maximum supply.

  • The capital raised during PSF, denominated in ETH, will be fully allocated for OWY liquidity provisioning. Shares purchased by PSF participants, represented by LP tokens, will be subject to a vesting period of 365 days (1 year). Note that there may be slight fluctuations in this vesting period due to the variability in block production on the Ethereum blockchain.

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Decentralize the Distribution

To decentralize this distribution, two rules will be applied:

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1. LP Token Composition

Each LP token consists of two components: ETH and OWY. ETH is contributed by the PSF participants, while OWY is from the distribution. Technically, participants only contribute 50% or one side of the liquidity. Therefore, they can claim only half of their LP tokens. The other half will be permanently locked on Uniswap, without any individual access or mutability. This means that for PSF participants to realize profits from their purchases, the price of OWY, denominated in ETH, must rise by 100% (or 2x) from the PSF price. The locked LPs ensure perpetual liquidity for public trades in a decentralized manner.

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2. Liquidity Dynamics

As a result of rule 1, only 45% of OWY is actually distributed to PSF participants initially. However, this is only true if there are no purchases of OWY during the entire PSF vesting period (1 year). If OWY is bought during this period, the ratio of OWY to ETH for each LP token will decrease. Consequently, each LP token will contain less OWY , reducing the allocation of OWY that PSF participants can claim. This benefits holder decentralization, as more OWY will be distributed to the public. If there is enough buying pressure to drive the price of OWY up by more than 100%, PSF participants will profit from their PSF purchases in two ways: 1) capital gains and 2) trading fees from liquidity provision.

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