GEMS will initially be uncapped, with emission rates determined by the SolGems DAO.
While having no hard cap on the total supply of SolGems makes it an inflationary token, the team aims to build deflationary mechanisms into the products and services that operate within the SolGems ecosystem. Ultimately, with the end goal of diminishing the circulating supply.
The current emission rate is 50,000 GEMS per day of which 100% currently goes to the DazedDucks. As more collections join the SolGems ecosystem the DAO will be responsible for adjusting the rate accordingly.
Distribution of SolGems to NFT collections will be based on their performance of daily contributed Solana into to ecosystem. E.g if DazedDucks contributes 80 Solana while another project contributes 20, the emission pot for that day would be split 80/20. Distributions are calculated automatically every 24 hours.
It is the responsibility of each project to distribute their GEMS to holders however they please. DazedDucks currently does it via staking in the following percentages:
- Common Ducks- 36% of Daily $GEMS Rewards
- Rare Ducks- 36% of Daily $GEMS Rewards
- Super Rare Ducks- 17% of Daily $GEMS Rewards
- Legendary Ducks- 1% of Daily $GEMS Rewards
- Quack Hammers: 7% of Daily $GEMS Rewards
- DazedDucks DAO: 1% of Daily $GEMS Rewards
Some initial burn mechanics include:
• 100% burn on NFT mints or reveals
• 100% burn on NFT application fees
• Voted burning of SolGems DAO treasury