Proposal for the creation of MARROW token
Synopsis: This proposal introduces ‘Marrow’, a new inflationary token designed to enhance the K9 Finance and Shibarium ecosystems. Marrow will serve as a supplementary reward for Bonecrusher and Shibarium users, incentivize liquidity provision through various pools, and offer boosted APRs via a locking mechanism. The proposal outlines the initial distribution of a 1 Trillion Marrow supply, a diminishing monthly minting schedule, a dynamic sell tax, and allocates funds for development, team, and liquidity. The aim is to drive adoption, increase TVL, and stimulate transaction volume on Shibarium, while carefully managing inflation and ensuring project sustainability.
Proposal: Introduction of Marrow (MARROW) Token
(1) Introduction and Objective
This proposal outlines the introduction of a new inflationary token, named “Marrow” (MARROW), into the K9 Finance ecosystem. The primary objective is to create a supplementary reward mechanism designed to enhance engagement, drive liquidity, and stimulate activity within the Bonecrusher platform and the broader Shibarium network. By strategically distributing an initial supply and implementing a controlled, diminishing inflationary schedule, Marrow aims to attract new users, reward existing loyal holders, and provide new avenues for yield generation, complementing the existing utility of KNINE and knBONE.
(2) Benefits to K9 Finance Community
Introducing the Marrow token offers several potential advantages for the K9 Finance community:
• Enhanced Reward Opportunities: Provides additional earning potential for Bonecrusher users (BONE stakers/knBONE holders) and KNINE stakers, supplementing existing rewards.
• Increased Liquidity: Incentivizes liquidity provision across key token pairs on Shibarium, improving market depth and stability for ecosystem tokens like KNINE, BONE, and knBONE.
• New Yield Mechanisms: The Marrow locking feature offers flexible and potentially high-APR staking opportunities, attracting users seeking diverse yield strategies.
• Shibarium Ecosystem Stimulation: Drives transaction volume on Shibarium through Marrow trading, liquidity actions, and staking interactions, contributing to network activity and potential SHIB burns.
• Attracts New Users: The airdrop to Shibarium users and the various reward opportunities can attract new participants to the K9 Finance platform.
• Funding for Development & Operations: A portion of the initial supply and ongoing token taxes can provide dedicated funding for the development and maintenance of the Marrow token and related features.
K9 Proposal Bot, [23/05/2025 01:42 p. m.]
(3) Proposal Details
(a) WHAT
The proposal is the creation and integration of the Marrow (MARROW) token into the K9 Finance ecosystem with the following characteristics:
• Token Name: Marrow
• Initial Total Supply: 1,000,000,000,000 (1 Trillion) tokens.
• Initial Distribution (Totaling 100% of Initial Supply):
• 25% (250 Billion tokens): Distributed equally to eligible KNINE holders (wallets holding >= 200 Million KNINE for >= 6 consecutive months).
• 10% (100 Billion tokens): Distributed equally to eligible Shibarium users (wallets with >= 100 on-chain transactions on Shibarium).
• 20% (200 Billion tokens): Allocated for locking liquidity (used for both creating initial DAO-owned liquidity pools and incentivizing users to provide liquidity to Marrow pairs on DEXs).
• 20% (200 Billion tokens): Allocated to a DAO discretionary pool for strategic liquidity pool boosts across various Shibarium pairs, as decided by the DAO governance.
• 25% (250 Billion tokens): Allocated for Development and Team.
• 20% (200 Billion tokens): Allocated for Team/KOL vests (2-year linear vesting schedule).
• 5% (50 Billion tokens): Allocated as a budget for Development and Operations specifically related to the Marrow token and its features (e.g., smart contract development, audits, ongoing maintenance).
• Ongoing Minting Schedule (Inflationary): Starts with a monthly minting of 1 Billion tokens. The minted amount will reduce by 1% of the previous month’s minted amount indefinitely.
• Marrow Sell Tax: A tax will be applied to sell transactions of Marrow. It will start at 5% and diminish by 1% each month until it reaches a permanent floor of 1%.
• Revenue generated from this tax will go to the DAO. Uses may include supporting Marrow liquidity/APRs and contributing to the general K9 DAO Treasury.
• Marrow Utility:
• Liquidity Pairing: Marrow can be paired with other tokens on Shibarium DEXs (e.g., KNINE/Bone, Bone/KnBone, KNINE/Shib, Bone/Shib, KnBone/KNINE, and other strategic pairs decided by the DAO).
• Marrow Locking/Staking: Users can lock/stake Marrow tokens on the K9 Finance platform for varying durations to earn APRs. Longer lock periods would receive higher APRs.
• Reward Structure (APRs):
• Marrow rewards for staking/locking will primarily be sourced from the ongoing monthly minting.
• Initial APRs could range from 10% (no lock) up to 80-100% (max lock, e.g., 1 year).
• APRs will dynamically adjust based on pool participation (diluting as more users stake/lock Marrow) and are expected to stabilize around 5-10% in each pool over time.
• Relationship to KNINE: Marrow is intended to be a supplementary reward, existing in addition to the rewards currently earned through KNINE staking, BONE staking (knBONE), and farming.
K9 Proposal Bot, [23/05/2025 01:42 p. m.]
(b) WHO
The following stakeholders are involved in this proposal:
• K9 Finance DAO Community: All KNINE token holders (governors), Bonecrusher users (BONE stakers, knBONE holders), KNINE stakers/lockers, and general Shibarium users (as initial airdrop recipients and potential future Marrow users/holders).
• Management Council: Responsible for overseeing the implementation, managing the 5% development/operations budget, and coordinating with the development team and potentially external agencies.
• Development Team: Required for the technical design, development, testing, deployment, and ongoing maintenance of the Marrow token contract, airdrop mechanism, tax function, and Marrow staking/locking smart contracts and user interface elements. This will likely require significant allocation of developer resources or hiring/contracting new developers.
• Team/KOLs: Recipients of a portion of the initial supply on a vesting schedule, expected to contribute to the token’s promotion and ecosystem growth.
• Future Marrow Users & LP Providers: Individuals and entities who will utilize Marrow for trading, liquidity provision, staking, and locking.
(c) WHERE
The implementation and impact of this proposal will occur:
• On the Shibarium Network: Marrow token deployment, transaction tax execution, liquidity pool hosting on Shibarium DEXs (primarily ShibaSwap), Marrow staking/locking smart contracts.
• On the K9 Finance Platform: Integration of Marrow balance display, staking/locking interface, and potentially initial airdrop claiming portal within the dApp and website.
• On various DEXs: Creation and incentivization of Marrow liquidity pools (e.g., ShibaSwap, potentially others).
• Via Smart Contracts: Deployment of the Marrow token contract, vesting contracts, airdrop contract, tax contract, and staking/locking contracts.
(d) WHEN
A proposed timeline for implementation (subject to change based on technical feasibility and resource availability):
• Proposal Review & Vote: This proposal will undergo community discussion and potentially a review by the Roundtable of Dogs before proceeding to an on-chain DAO vote (estimated timeline follows standard DAO governance process).
• Development & Audit Phase: Upon successful DAO vote, technical development of the Marrow token contract, associated features (tax, airdrop, staking/locking), and independent smart contract audits would commence. This phase is estimated to take several months, depending on complexity and resource allocation.
• Internal Testing: Rigorous testing on Shibarium testnet (Puppynet) to ensure all features function correctly and securely.
• Launch Preparation & Marketing: Preparation for token launch, including exchange listings (DEX), marketing campaigns announcing the new token and its features, and setting up initial liquidity pools.
• Token Launch & Initial Distribution: Deployment of the Marrow token and associated contracts on Shibarium mainnet, followed by the initial airdrop distribution to eligible wallets.
• Feature Rollout: Activation of Marrow staking/locking features and ongoing management of liquidity pool incentives.
• Ongoing Operations: Continuous monitoring of the Marrow tokenomics, management of monthly minting, administration of the sell tax revenue, and periodic reviews of APRs and pool strategies.
K9 Proposal Bot, [23/05/2025 01:42 p. m.]
(e) HOW
Implementing this proposal requires the following resources and steps:
• Smart Contract Development: Design, code, and test new smart contracts for the Marrow token (ERC20), the initial airdrop distribution, the dynamic transaction tax, the diminishing monthly minting, the Marrow staking/locking mechanism (with variable APRs based on lock duration), and vesting for Team/KOLs.
• Smart Contract Audits: Engage reputable third-party security firms to conduct thorough audits of all new Marrow-related smart contracts to identify and mitigate potential vulnerabilities.
• Frontend/Backend Development: Update the K9 Finance website and dApp user interface to display Marrow balances, integrate the airdrop claiming process (if applicable), and provide an interface for Marrow staking/locking and viewing associated APRs. Backend infrastructure may be needed to support the minting and tax logic.
• Airdrop Execution: Develop and execute a secure and efficient process for distributing the initial Marrow supply to eligible KNINE holders and Shibarium users based on defined criteria and snapshots.
• Liquidity Management: Utilize a portion of the initial supply to establish and potentially seed official DAO-owned Marrow liquidity pools on selected Shibarium DEXs. Implement smart contracts or processes to manage and incentivize user-provided liquidity.
• Budget Allocation: The 5% (50 Billion tokens) from the initial supply is specifically allocated to fund the initial significant development and audit costs, as well as contribute to ongoing team compensation related to Marrow. Additionally, revenue from the Marrow sell tax after launch will provide ongoing operational funds and can be used to support Marrow liquidity and staking APRs if needed, or flow into the general DAO treasury.
• Resource Management: The Management Council will oversee the allocation of the 5% budget, potentially hiring external developers or auditors if needed, and managing the workflow to integrate this new token development alongside the core product roadmap.
• Community Engagement: Conduct clear and consistent communication throughout the development and launch process to inform the community about the Marrow token, its utility, how to participate in the airdrop and yield opportunities, and the dynamic tax/reward structure.
Budget Considerations: It is important to note that the initial 5% (50 Billion Marrow tokens) allocated for development and team is intended to cover the significant upfront costs associated with developing and auditing new smart contracts and integrating them into the platform. The precise fiat value of this allocation will depend on the market price of Marrow around the time development costs are incurred. Smart contract development and audits for complex features can be substantial, often exceeding $20,000. The DAO should carefully assess if this allocation is sufficient or if supplementary funding may be required from the general treasury (as per the DAO’s monthly budget) or potentially explored through grants or strategic partnerships.
K9 Proposal Bot, [23/05/2025 01:42 p. m.]
(4) Impact Assessment
K9 Proposal Bot, [23/05/2025 01:42 p. m.]
• Short-Term Impacts:
• Increased hype and attention around the K9 Finance project due to the new token announcement and initial airdrop.
• Immediate distribution of Marrow to targeted user groups, potentially boosting engagement within those communities.
• Creation of new liquidity pools for Marrow pairs on Shibarium DEXs.
• Potential increase in short-term transaction volume related to Marrow trading and initial staking/locking.
• Significant allocation of development resources to the Marrow token implementation.
• Long-Term Impacts:
• Establishment of Marrow as a key component of the K9 Finance reward ecosystem, supplementing BONE and KNINE rewards.
• Sustainable yield opportunities for users participating in Marrow staking/locking (if APRs stabilize as projected).
• Contribution to the long-term TVL and transaction volume on Shibarium through active Marrow pools and usage.
• Diversification of the K9 Finance ecosystem with a new utility token.
• Ongoing revenue generation for the DAO through the Marrow sell tax.
• Potential for Marrow to be integrated into other Shibarium DeFi protocols.
• Risks and Mitigation:
• Risk: Insufficient Adoption/Utility. If users don’t see value in Marrow beyond initial rewards, adoption may stagnate. Mitigation: Strategic DAO discretionary boosts, clear communication of utility (LP, locking), potential future integrations.
• Risk: Unsustainable APRs. The diminishing monthly minting may not keep pace with user participation, leading to lower than expected or unsustainable APRs. Mitigation: Communicate dynamic nature of APRs, potentially use a portion of Marrow sell tax revenue to supplement rewards or buy back Marrow for reward pools, DAO monitors and adjusts strategies based on performance.
• Risk: Development Cost Exceeds Budget. The complexity of the smart contracts and audits may exceed the 5% allocation. Mitigation: Realistic assessment during planning, potential request for additional funding from general DAO budget or external sources (grants), phased development if necessary.
• Risk: Community Confusion/Negative Sentiment. Inflationary nature, dynamic taxes/APRs, and the role relative to KNINE might confuse users or cause dissatisfaction if not clearly understood. Mitigation: Robust educational campaigns, transparent reporting on tokenomics and fund usage, responsive community support.
• Risk: Dilution of KNINE Focus. Introducing Marrow could potentially draw focus or liquidity away from KNINE. Mitigation: Position Marrow as complementary and supplementary, emphasize the core governance and staking utility of KNINE, ensure strategic pairing promotes KNINE/Marrow or KNINE/BONE/Marrow interactions.
• Risk: Smart Contract Vulnerabilities. Development of new contracts increases smart contract risk. Mitigation: Engaging experienced developers and conducting rigorous, independent smart contract audits is critical before deployment.
• Metrics for Success:
• Number of unique Marrow token holders over time.
• Total Value Locked (TVL) in Marrow liquidity pools on Shibarium DEXs.
• Total Value Locked (TVL) in Marrow staking/locking contracts.
• Transaction volume of Marrow trading pairs on Shibarium.
• Participation rate in Marrow staking/locking compared to available supply.
• Revenue generated from the Marrow sell tax.
K9 Proposal Bot, [23/05/2025 01:42 p. m.]
• User feedback and sentiment regarding the Marrow token and its features.
• Successful and secure deployment of all Marrow-related smart contracts and features, confirmed by audits.
Too Much Complexity
Focus and Clarity
Development Priorities
