Overview of Token Economics and Deepwaters

WTR ( Deepwaters )has a 350,000,000 unit (350 million) maximum supply cap. Issuance is depending on time and milestones. This is an attempt to make sure that token distribution is done gradually and in line with the platform’s success.

Remittance of Products and Services

WTR can be used to purchase a range of Deepwaters products and services. Among the instances are: Transaction costs, buying Subscriptions / Memberships at Deepwaters, premium Deepwaters data

The relevant assets that relate to the user’s actions are used to calculate fees. A part of these costs may be paid with WTR, which has a set $0.70 exchange rate in dollars. The admissible amount is a parameter specified by the protocol and is contingent upon the user’s recent trading volume and/or current subscription.

Overview of Allocation and Distribution

As demonstrated below, the distribution of tokens is intended to support a varied and equitable group of token holders. Through stakeholder participation in governance and token utility, the system establishes a system of checks and balances to guarantee the project’s best interests are pursued.

More information on the several parties involved is provided below:

Deepwaters Team: Funded for the Deepwaters team, but may also be used for additional community initiatives (such as farming, LP, etc.).

88% of the team is allocated to quarterly dividends (from mainnet launch), a two-year vest, and a six-month cliff. 12% of the team’s allotment is designated as the “employee incentive pool,” with the purpose of being used for bonuses, retention, and recruitment (vesting varies)

Investors: Present backers of the project who have already contributed to the current round. Tokens that are not sold will move to the “Strategic Reserve.”

* Quarterly dividends (from mainnet launch), a 6-month cliff, and a 2-year vest

Strategic Reserve: Deepwaters holds this reserve for collaborations, liquidity, potential investors, etc.

May be utilized at the company’s discretion, subject to the following limitations:

Cannot be transferred to a team or advisor. Deepwaters cannot sell it on the open market.

Any token sale or other distribution must include a minimum 6-month lockup or cliff (call options to market makers must be made in either 1) American style with the lowest strike price at least 100% above the then-current market price, or 2) European or Bermudan style with a minimum 6-month lockup period before they can be exercised).

Advisors: Allotted to Deepwaters for the purpose of recognizing advisors; may be unused or used for additional community initiatives.

Community — Distributed to validators and users of Deepwaters.

Validator Rewards: Given to validators that guarantee Deepwaters’ security

Liquidity Incentives: Given to users to encourage early adoption and ecosystem growth

Milestone-based Community Fund: A strategic reserve managed by WTR governance, intended for community incentive initiatives

Time-based Community Fund: A strategic reserve under WTR oversight, intended for community incentive schemes

Available every month for four years, beginning with platform debut.

Open Presale: Reserved for launchpad offerings open to the public

Marketing/Promotion: Allotted for airdrops and other promotional activities.

While we assume there is no lockup for the sake of our forecast supply, there may be a lockout period for portion of this allotment.

Investors

Private equity investment is represented by Deepwaters “Investors.” This allotment covers all previous and upcoming fundraising.

Community

Users and validators are represented in Deepwaters’ “Community.” To protect the network, foster community, and reward user behavior, tokens will be distributed. Among the activities that qualify for user incentives are, but are not restricted to: Market-making and trading, community-building assignments and programs, client recommendations

The community will receive tokens that are time- and milestone-based. This is an attempt to make sure that token distribution happens gradually and in line with the platform’s success.

Distribution of Community Tokens Based on Milestones

Deepwaters Qualified Fees (which include trading fees, membership fees, and other qualifying paid goods and services in the Deepwaters platform) release three-quarters (¾) of all distributed community tokens. The Community Fund, Validators, and User Incentives will each receive an equal portion of the previously specified tokens. Individual activities on the site will determine the user reward that each participant receives.

Token unlocking is originally set at a fixed conversion rate of $0.70 per WTR, or 100% of platform generated fees. The WTR community can work with the Deepwaters team to coordinate changes to the rate of issuance.

Time-Based Distribution of Community Tokens

Over the course of four years, one-fourth (¼) of all distributed community tokens will be released each month into the Community Fund. In line with governance voting, these tokens can be distributed with the goal of expanding the Deepwaters community and fostering a positive token economy that benefits both users and validators.

Community Fund

Community Fund Deepwaters governance is required to start the Community Fund token distribution process. The Deepwaters team will initially be in charge of governance, which will be replaced in Q3 2023 by a community DAO. With the goal of fostering a strong token economy and community development, the fund may be freely utilized for the following initiatives: More user incentives, more validator awards, community initiatives and marketing, network upgrades

Validators

The Deepwaters Validator Client can be built and operated independently by anyone. In order to verify that the platform is operating as intended, a validator will execute the client and subscribe to Deepwaters remote Trusted Execution Environment attestation.