esUNW should continue as the governance token of Uniwhale, whose holders are rewarded based on their long-term commitment to the protocol.
To serve its narrower but better defined purpose, the Proposal calls for esUNW to stop being the emission token, and be more exclusive.
Specifically, the Proposal calls for esUNW to be upgraded to esUNW-v2 with the following feature:
Max Supply: 2,000
Initial Supply: Up to 140 (see “esUNW migration”)
Emission: 416 per year across staking and auction (see “esUNW-v2 emission”)
Redeemable at the intrinsic value of Fee Vault
The Proposal calls that the esUNW holders migrate to esUNW-v2 with a few options to those holders who do not wish to migrate.
Each 50,000 esUNW will be equal to 1 esUNW-v2, considering the maximum supply of 2,000. Given the current circulating supply of c. 7m esUNW, this means the initial supply of esUNW-v2 can be as many as 140, if all esUNW holders choose to migrate.
After the migration, esUNW will receive neither Fee Distribution nor Emission. esUNW that is not migrated may be :
vested to UNW (linearly over 6 months),
if converted from UNW, be converted to UNW immediately 1:1, or
if otherwise, be converted to UNW by burning 50%
1 esUNW-v2 per day is allocated to UNW staking.
1 esUNW-v2 will be auctioned on a weekly basis, where, for an allocation of esUNW-v2, UNW holders burn UNW.
Therefore, 8 esUNW-v2 will be emitted every week, annualizing to 416 esUNW-v2.