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IV. Token Economics

DREAM Token: Utility First, Speculation Secondary​

Total Supply: 10 billion DREAM tokens

Distribution (proposed, subject to change):

30%  │██████████████████████████████  │ User & Community Rewards
20%  │████████████████████            │ Lending Protocol Incentives
15%  │███████████████                 │ Community Token Sale
15%  │███████████████                 │ Team (4yr vest, 1yr cliff)
10%  │██████████                      │ DAO Treasury & Grants
10%  │██████████                      │ Insurance Reserve
──────────────────────────────────────────────────────────────
60%  → Community (users, borrowers, lenders, treasury)
15%  → Community sale (no VC allocation)
15%  → Team
10%  → Insurance/Safety

Key principles:

  • No presale to VCs (community sale only)
  • Team tokens vest over 4 years with 1-year cliff
  • Majority (65%) goes to actual users of the protocol
  • Insurance reserve cannot be used for anything else

How Users Earn DREAM​

Phase 1 - Copilot Era (NOW):

Action                          Reward          Frequency
─────────────────────────────────────────────────────────────
Connect bank account            100 DREAM       One-time
Daily active use                5-10 DREAM      Daily
Verified savings                0.5 DREAM per $ One-time per action
Referral (30-day active)        200 DREAM       Per successful referral
Payment streak milestone        50-500 DREAM    Per milestone
Emergency fund milestone        100-1000 DREAM  Per milestone

Token Utility​

1. Lending Rate Reduction

Stake Amount          APR Reduction    How it works
────────────────────────────────────────────────────────
1,000 DREAM           -0.10%           Lock tokens during loan
5,000 DREAM           -0.40%           Unlock when loan paid
10,000 DREAM          -0.75%           Alignment mechanism
25,000 DREAM          -1.25%           Caps at ~1.5%

2. Governance Rights

Real decisions requiring token votes:

  • Risk pool parameters (within regulatory bounds)
  • Insurance premium ranges
  • Protocol fee structure
  • Treasury allocation
  • Feature prioritization

3. Protocol Revenue Participation

Protocol earns 0.5-1% fee on all loan volume
50% goes to token burns (deflationary)
50% goes to DAO treasury (community-controlled)