Why Is ECLIPSE Inherently Valuable?

Last updated 6 months ago

No VC Dominance: Eclipse is a No-VC coin, with 90% of ECLIPSE tokens distributed to those who contribute value and revenue to the protocol, primarily through USD0 TVL. Insiders, such as investors, the team, and advisors, collectively hold no more than 10% of the total circulating supply, shielding users from excessive dilution.
Emission Linked to Cash Flows: The issuance of ECLIPSE is directly correlated to future cash flows generated primarily by the stablecoin’s collateral. The token supply increases in line with protocol revenue growth, which is driven by collateral staked by USD0 holders.
Focused on Long Term ownership: Unlike many models where new entrants dilute the value and supply of governance tokens, pushing early adopters to sell quickly, Eclipse protects its long-term community. The model is designed to incentivize long-term holders, preserving the value for those who believe in the protocol’s future.

Front-Loaded Distribution: The highest distribution rate occurs during the initial airdrop, decreasing over time as staked TVL increases.
Disinflationary Issuance Model: Eclipse’s emission model is designed to be disinflationary, much like Bitcoin. The inflation rate is calibrated to remain below the revenue growth of the protocol, ensuring that token issuance does not outpace the protocol’s economic expansion.

Direct Rights to Protocol Revenue: The ECLIPSE governance token grants holders absolute rights over the protocol’s treasury. Unlike many governance tokens tied to non-revenue-generating protocols, ECLIPSE ’s value is directly correlated to the cash flow produced by the protocol.
Earnings Per Token Increase with TVL: The emission model ensures that as the TVL grows, the Earnings Per Token (EPT) rise, enhancing the intrinsic value of ECLIPSE. This mechanism aligns the token’s value with the protocol’s success, incentivizing growth and long-term participation.

Staking Mechanism: To activate governance rights, users must stake their ECLIPSE tokens. Staking ECLIPSE grants access to 10% of future ECLIPSE emissions, incentivizing long-term participation and rewarding early believers.
Early Unstaking Option: USD0++ is a Liquid Staking Token (LST), where staked USD0 can be unlocked before the four-year period by burning a portion of ECLIPSE tokens received as rewards. This feature will be implemented starting from Q1 2025.
Gauge Voting: ECLIPSE holders guide protocol liquidity and influence key decisions, ensuring their active role in the protocol’s growth and success.
Treasury Management: ECLIPSE holders will also have the ability to decide how the treasury and protocol revenues are managed, through future mechanisms such as token burns or revenue distributions (and investment allocation of the treasury).

Last updated 6 months ago

No VC Dominance: Eclipse is a No-VC coin, with 90% of ECLIPSE tokens distributed to those who contribute value and revenue to the protocol, primarily through USD0 TVL. Insiders, such as investors, the team, and advisors, collectively hold no more than 10% of the total circulating supply, shielding users from excessive dilution.
Emission Linked to Cash Flows: The issuance of ECLIPSE is directly correlated to future cash flows generated primarily by the stablecoin’s collateral. The token supply increases in line with protocol revenue growth, which is driven by collateral staked by USD0 holders.
Focused on Long Term ownership: Unlike many models where new entrants dilute the value and supply of governance tokens, pushing early adopters to sell quickly, Eclipse protects its long-term community. The model is designed to incentivize long-term holders, preserving the value for those who believe in the protocol’s future.

Front-Loaded Distribution: The highest distribution rate occurs during the initial airdrop, decreasing over time as staked TVL increases.
Disinflationary Issuance Model: Eclipse’s emission model is designed to be disinflationary, much like Bitcoin. The inflation rate is calibrated to remain below the revenue growth of the protocol, ensuring that token issuance does not outpace the protocol’s economic expansion.

Direct Rights to Protocol Revenue: The ECLIPSE governance token grants holders absolute rights over the protocol’s treasury. Unlike many governance tokens tied to non-revenue-generating protocols, ECLIPSE ’s value is directly correlated to the cash flow produced by the protocol.
Earnings Per Token Increase with TVL: The emission model ensures that as the TVL grows, the Earnings Per Token (EPT) rise, enhancing the intrinsic value of ECLIPSE. This mechanism aligns the token’s value with the protocol’s success, incentivizing growth and long-term participation.

Staking Mechanism: To activate governance rights, users must stake their ECLIPSE tokens. Staking ECLIPSE grants access to 10% of future ECLIPSE emissions, incentivizing long-term participation and rewarding early believers.
Early Unstaking Option: USD0++ is a Liquid Staking Token (LST), where staked USD0 can be unlocked before the four-year period by burning a portion of ECLIPSE tokens received as rewards. This feature will be implemented starting from Q1 2025.
Gauge Voting: ECLIPSE holders guide protocol liquidity and influence key decisions, ensuring their active role in the protocol’s growth and success.
Treasury Management: ECLIPSE holders will also have the ability to decide how the treasury and protocol revenues are managed, through future mechanisms such as token burns or revenue distributions (and investment allocation of the treasury).