Nov 29, 2022
INTRODUCING THE NEW RUBIC TOKENOMICS — THE WAY FORWARD
Rubic is a Great Product and Tech We’re Proud Of
Rubic was launched back in September 2020, and since then, it has evolved dramatically. Rubic was the first-ever project which introduced One-Click Cross-Chain swaps, and we maintain industry leadership in terms of technology. Today we provide Cross-Chain swaps and the aggregation of DEXs and Bridges, ensuring the best rates for On-Chain and Cross-Chain swaps in the entire cryptosphere, thanks to aggregation. Right now, we have 26 networks and more than 15,500 tokens available for swaps.
Today, 130 out of 2,150 live dApps currently operating on the market have become interoperable with Rubic, which accounts for 6% of the total number of live dApps on the market.
We plan to expand Rubic’s dApp share and reach 25% of the total number of dApps in 2023.
Today, Rubic generates up to 32% of volume to its integrated cross-chain providers, playing a massive role in their ecosystem development, while bringing more users and transactions to their platforms.
We’re proud of the product we’ve built and continue to improve. As long as blockchains continue to appear, there will be a demand for the quick and reliable cross-chain services we build.
Extra Tokens in Circulation
On November 2nd, due to unauthorized actions, 35M RBC tokens, which were held for the purposes of bridging to BRBC in a separate dedicated wallet, were added to the circulating supply.
This has led to serious issues we are now facing with our tokenomics:
- The RBC token has suffered from a 75% price decrease as a result of a 35M increased supply, which currently equals 158.5M Rubic tokens (initial max supply of 124M on Ethereum + 35M on BNB — 0.5M burned).
- This extra amount hasn’t been locked in the current smart contracts, so it is not collateralized with ETH. Right now, we can only fix it with the new contract, as this is a huge number to buy back, even if it was possible.
- The BRBC token price is currently higher than that of RBC, the RBC <> BRBC bridge cannot maintain the ratio of 1 to 1, and BRBC is no longer connected to RBC because there’s no more collateral for it on Ethereum (which 35M served for). Now, we need new tokenomics to fix it.
These factors play a crucial role in price instability and future token growth.
Also, our current tokenomics are far from being perfect — we need to have more token utilities and more financial opportunities to develop the project further.
There is, however, a way to resolve these issues. The only option we see to solve these issues is to relaunch our token with new tokenomics.
The New Token
The new RBC token will be created on Ethereum (ERC-20).
- To get it, you should hold it in your private wallet, for which you hold the private key (regardless of which network it is on now — Polygon, BNB Chain, Ethereum).
- If you keep it on CEXs, please withdraw it to your private wallet.
- If the governance vote on the new tokenomics is successful, the snapshot will be done on December 12th at 12:00 CET. Centralized exchanges have to stop trading the old token after the snapshot.
- You will be able to claim the new RBC at a ratio of 1:1 to the old RBC (instructions on how to claim it will follow) — it will open in several days after the snapshot.
The new RBC will be listed on Uniswap V2 at the same price as it was before the snapshot.
Centralized exchanges should also resume trading after the replacement of the contract address.
New RBC Supply
The total supply to be minted in December 2022 is 176,000,000 RBC (it includes 159M which are already in circulation and 17M for retrodrop/marketing).
More RBC can be minted in the next few years (2024+) for additional marketing, partners, VCs, and ecosystem growth. The Max supply that can potentially be minted as per the new contract is 1,000,000,000 RBC. Emission dates are not set and are to be decided separately, if and when one is necessary. No other emission on top of 176M is planned in 2023.
The system of locks and vesting periods would help to prevent token price dumps (see the slide below for details).
Retrodrop to Holders
New emissions, if they take place, will be subject to further airdrops to holders (7% of each new minting, called the Loyalty program). It vests monthly over 36 months, and starts 1 year after TGE.
The total supply of 176M RBC, which is to be minted in December 2022, is also subject to a 7% retrodrop of 13M RBC to old RBC holders. It will be unlocked 6 months after TGE, with 25% being vested every 3 months during the year, to mitigate the risk of a price dump.
The 2022 airdrop is to be based on the following criteria (which are to be finalized via governance vote):
Holders for the last 18, 12, and 6 months
People who’ve held RBC/BRBC/wRBC tokens for the past 18,12, and 6 months will receive the airdrop with an increasing ratio depending on the length time which they have held RBC.
Staking V3 participants
People who’ve participated in Staking V3 will get an airdrop with an increased ratio.
Rubic NFT holders
People who’ve participated in Rubic Birthday Events and claimed the Rubic NFTs.
New Rubic Product for dApps
Rubic is Cubic and will never stop. We’re happy to present to you the new roadmap for 2023 and beyond. We have huge plans for expansion, not only in terms of growth but also via enormous product upgrades, which also calls for extra investments.
We’re planning to expand our SDK from just swaps to the aggregation of any cross-chain tech a Web3 dApp might need: from signals and oracles to NFT bridges and smart contract execution — in ready-made templates for DEXs, Lending/Farms, and more.
Besides all of these, we will continue to add new blockchains and DEXs to our protocol.
A dApp developer will no longer need to search for specific cross-chain service providers across the web, all of them will be inside the new Rubic umbrella SDK. We will tell you more about our new product in a separate communication.
Business Model
Rubic will continue the Transaction Fee model, charging a fee for every swap.
But going forward into the future, with a change in the overall competitive situation, Rubic is planning to include the following sources of income:
Bridges: To Provide Revenue, Share/Airdrops,
Blockchains: Integration Fees,
Retail: Transaction Fees,
dApps — SDK: Custom Fees + Subscriptions to Rubic Services,
dApps — Widgets: Custom Fees.
New RBC Token Utility
The new tokenomics will also upgrade RBC token utility.
- Governance: Token holders can participate in decentralized decision-making in the Rubic DAO.Grant programs for SDK integrators.
- Distribution of partners’ airdrops to RBC holders.
- SDK subscriptions and integration service fee in RBC.
- Low Fees for RBC holders: Cut costs of cross-chain calls, exchange fees, & gasless fees.
Route to Market
With the December 2022 emission, we envisage 4M RBC being necessary to market the new Rubic product. It will be available 6 months after TGE and vested as 25% every 3 months during the year.
There will also be 14% allocated to marketing (together with Treasury) with each emission, which will be unlocked starting 1 year after TGE, vesting monthly over 36 months.
How this money will be spent to lift Rubic to new heights:
1 — Spreading the word about Rubic’s SDK:
Grant programs for integrators
Cross-Chain Tech Hackathons and Conferences
Education materials & programs
Thematic articles, podcasts, and tutorial videos
2 — Forging partnerships to build up Rubic’s ecosystem
AMAs and collabs with Web3 Projects
Cross-Chain Meetups for founders of dApps
Direct selling to dApps
Strategic Investors
The Need for Additional Funds and Partnership Connections
However, the marketing money will be unlocked gradually only 6–12 months after TGE.
Right now, the project doesn’t generate enough revenue from swaps to cover headcount expenses and any big marketing investments for a new product. The competitive situation in the bear market doesn’t give us an opportunity to increase fees, unfortunately.
In the given circumstances, Rubic has to start negotiations with funds and VCs about additional investments in the updated version of Rubic (extended all-cross-chain SDK). These investments will propel us forward even further — not only with plentiful resources and manpower, but with what’s even more important — significant partnerships and connections, which will help to integrate Rubic’s SDK into infrastructurally important Web3 projects.
The new proposed seed round share is 15%. The vesting schedule should mitigate any possible price dumping: VC funds unlock after 1 year, and vest monthly over a period of 12 months.
Staking V3 to Be Closed
Due to the change in tokenomics, Rubic will close Staking V3 after the launch of the new RBC token. We need to unfreeze the old tokens and return the new ones to the stakers’ wallets.
In the future, we want to offer staking to our B2B integrators, so that they have the motivation to hold RBC to use our SDK/ Widget.
Governance Vote
Our community are the ones who have always been motivating us to build and improve. We have to move forward, and the whole Rubic team can’t imagine it being done without your support.
You’re the true Rubicans, and we want you to decide on the future path for Rubic.
The vote will start on Friday, December 2nd and will finish on December 5th.It will be held at https://snapshot.org/ (exact link to be published later).
