$WOOF

The WOOF Token

Degen Dogs say $WOOF

The $WOOF token is a central component of Degen Dogs Mission 2.

Degen Dogs $WOOF is a bonding-curve ERC20 token powered by MintClub, on Degen Chain.

Key details include:

  • backed by DEGEN (technically WDEGEN, which can be exchanged for native DEGEN 1:1)

  • 0% fee to BUY, 11% fee to sell

  • starting price: 0.0001 DEGEN per $WOOF

  • ending price: ~0.168 DEGEN (if max supply completely minted)

  • max supply: 6,000,000,000

  • pricing steps: 500

  • price increase each step: 1.5%

How it Works

The $WOOF token is backed by actual DEGEN which serves as liquidity, which means that you can always sell at a predictable price. The amount of DEGEN backing the token at any moment is often referred to as the TVL, the Total Value Locked -- in this case, it means the amount of DEGEN locked in the contract that would be returned on holders if they sell (burn) their $WOOF. There is no need for liquidity pools such as Uniswap. For each of the 500 "steps" on the curve, there is a fixed price. That price increases 1.5% on each step. As people mint (buy) $WOOF, the price moves along the curve. Earlier buyers pay a lower price that later buyers. As people burn (sell), the supply decreases and the price moves along the curve in the opposite direction (the price decreases). Since the maximum supply is 6 Billion, each price step is (6B / 500 steps) is 12 Million. Each time the supply increases/decreases by 12 Million $WOOF, the price increases/decreases. For example, during step one, 12 Million $WOOF will cost 1,200 DEGEN. During step 500, 12M $WOOF will cost over 2,000,000 DEGEN.

When minting (buying), there is no fee. When burning (selling), an 11% fee is taken. These fees will go back to holders of Degen Dogs NFTs. The reasons for this fee are 1) to encourage people to hold the token, enabling price appreciation for all holders, and 2) to mitigate the risk of front-running the regular minting of $WOOF by Degen Dogs (see below).

Daily Minting via mcdegen

The Degen Dogs treasury has been moved from Polygon to Base, swapped for DEGEN, then locked in the Degen Vault. By locking this DEGEN, the Degen Dogs have a tipping allocation of approx 10,000 DEGEN per day. Using a MintClub feature known as mcdegen, the tip allocation will be used to mint $WOOF daily. After fees, this amount to approximately 9,000 DEGEN added to $WOOF TVL each day. This has the same impact of someone directly minting 9,000 DEGEN worth of $WOOF, in both cases paying the price specified for the current pricing step. Like all minting of $WOOF, this increases the minted supply and thus increases the price with each step. (Of course, any sales/burns happening along the way will have the opposite effect). What is important to note here is that Degen Dogs will be minting ~9000 DEGEN worth of $WOOF daily. Over the course of one year, this equates to adding over 3,000,000 DEGEN in TVL. (At the time of writing, this equates to over 60,000 USD each year).

Further note that auction proceeds will also be used to mint additional $WOOF.

Also important is that the $WOOF minted by Degen Dogs cannot immediately be sold. Instead it is streamed per-second to holders of Degen Dog NFTs over 90 days. See Streamonomics for more details. The streaming acts as a form of vesting that reduces sell pressure of $WOOF.

How to say (buy) $WOOF

Degen Dogs say $WOOF by minting (buying) $WOOF. This can be done in two ways:

Another way to get $WOOF

Of course, abnother way to acquire WOOF is to hold a Degen Dog and earn a share of the stream. Buy one on Jeeves.Market or bid on one in an auction.

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