Dogewhale has been live for 2 months now and it’s a great time to assess how the initial expectations are coming along as we face the current results.
Dogewhale is the culmination of many theories and experiments that have been seeking to refine the concept of a sustainable model for deflationary tokenomics whilst also maintaining a fun atmosphere and creative mascot.
In this article, we’ll address some of the unique tokenomic choices and comment on their observed effect.
The Distribution Event
A new standard for token launches
Dogewhale had one of the fairest launches ever seen in crypto. A custom contract was created to ensure all holders would be on equal footing during launch whilst also neutralizing predatory bots and launchpads.
A system was devised where 300 billion dogewhale tokens were up for grabs by whoever wanted to take part in the distribution event. The amount of dogewhale per holder would decrease proportionally as more people added funds to dogewhale liquidity.
In the end, dogewhale starting price stood at the same value for everyone following how much dogewhale decided to get. It was an excellent launch and for once there was no bot drama, sniping a huge portion of the supply. Having it done via a custom contract meant that launchpad platforms were able to be avoided as those can often ask for an unreasonable amount of tokens in return, sometimes reaching anywhere from 1–3% of the supply. That would be equivalent to nearly $100 million in dogewhale checkpoint rewards and so, quite understandably, such arrangement was absolutely out of the question.
We were genuinely curious as to how the market was going to react following the successful launch… We were rooting for a gradual appreciation whilst knowing full well that a gradual depreciation or neutral movement could also be possible. However, we were nervous thinking of the possibility of a flash crash materializing.
The market reacted with neutrality and a couple of days later, with impatience and so a gradual depreciation ensued.
Dogewhale Reserves
Markets go up, markets go down and Dogewhale reserves just keep growing.
“Some things benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk, and uncertainty.” — Nassim Taleb, Antifragile: Things That Gain From Disorder
Dogewhale is anti-fragile. It implements a reserve system where every transaction contributes to it. Buys contribute 1.25% to the reserve and sells contribute 3% to the reserve. This means that during downtrends, the reserves are filling up at a much faster rate, transparently locking in value, which will ultimately allow for the creation of a higher price floor.
As contributions make their way into the reserves, they get converted into dogecoin, shib, and floki. Making dogewhale one of the most promising whale holders in these doge tokens as it continuously dollar-cost averages its way up the ranks.
Additionally, dogewhale takes a part that automatically adds to the liquidity pools to ensure the liquidity can keep growing overtime to even healthier levels. As of now, dogewhale holds over $2M in locked liquidity so it’s ready to accommodate somewhat large trades.
As of today, the reserves accumulated a total of just over $30,000. You know what they say, It ain’t much but it’s honest work but slowly and surely, dogewhale reserves are growing at a respectable pace given the current amount of holders. Many people are still oblivious as to how the reserve system of dogewhale works, and that is something that will require some marketing effort.
Along with the growing reserves, it is also important to be aware that the supply of dogewhale continuously decreases based on time, not volume. Given that each dogewhale token is objectively tied to the reserve value, it is fair to say that each remaining dogewhale tokens are increasing in value as a consequence of the rising reserve. This symbiotic relationship between supply and reserve value is another dynamic that acts as a force for market appreciation. At least theoretically speaking.
Panic Controllers
Panic has a price, and it ain’t cheap
Perhaps one of the most exciting features in Dogewhale has been the panic control system. There’s no shortage of tokens with criminal fees. Tokens that take a total of 30% or more in buy and sell taxes make no sense. And what baffles me the most is that people are buying such tokens. The prospect that the price needs to appreciate some 30% just to be at break-even is a ridiculous proposal that only the most degen wouldn’t refuse.
Dogewhale doesn’t need to implement high taxes that vanish into magical lands. 1.25% for buys and 3% for sells is adequate and in fact, it is already a tad high. It may even decrease further with time with an upcoming proposal but more on it later.
Considering this, there is a panic system in place in case the dogewhale price falls over 50% from the all-time-high. In such an event, the buy tax decreases to 0.5%, and the selling tax increases to 8%. This is there to encourage buying from the common 50% retracement levels and discourage selling that will overly depress the market, however, if selling is done past the 50% retracement level, a lot more will be added towards the reserves boosting dogewhale anti-fragile properties. This circuit breaker makes a lot of sense to build discipline into the market and so far we see that it is working as intended.
There’s a lot more that can be done to explore these systems and one that we came to think of is using on-chain volume and time from inception as an indicator. As a simple example, if daily volume would be over $20M then the normal tax rates would be diminished still allowing the reserves to grow considerably albeit not as fast as before.
So far, dogewhale has already retraced over the programmed threshold at 50%. In fact, it has crossed that level a couple of times, triggering the panic control features which allowed us to see how the market reacts to this sort of feature. As expected, a price floor has been able to be kept around that level as opportunists do make the most out of the decreased buy tax present from those levels. As of now, there’s the hint that this sort of system points in the right direction in order to prevent or soothe larger shocks to the market. Dogewhale is yet to surpass its all-time-high, but we’re growing confident that may happen in the future as the protocol continues to establish itself on its strong foundations and more people take the time to learn about it in a sea of reflect doge clones that may clutter the view of potential holders.
Dogewhale Kanban
A useful complementary dApp
Many will already be aware that dogewhale has a kanban smart contract that seeks to delegate tasks to the community with the goal of advancing the goals of the protocol. The Dogewhale Kanban V1 has many rough edges but from the few times, it was used it had exactly the expected effect. We saw the community engaging with the kanban, and doing great work for the protocol. Some distinction is placed on the production of telegram stickers which are constantly used in the channel, special mention to the wobbly boi.
Many community members from around the world also assisted in providing quality translations of Dogewhale’s site. A few also were able to provide voice-over to dogewhale explainer videos. All this was fantastic work coordinated via the kanban board in a manner that allowed for fast profiling and complete transparency.
Additionally, the kanban has proven to be a useful tool for troubleshooting. Upon the distribution launch, an issue had been identified with the staking options and there was a lot of noise in the chat. So a kanban task was opened to deal with the large influx of chaotic messages that mentioned all kinds of weird issues. Upon inspection of the kanban messages, it became clear that what seemed to be countless issues in the chat was in fact a single problem — a user interface glitch. The kanban had permitted the problem to be quickly identified and rectified. All on-chain.
It is clear that the kanban is an extremely needed and powerful tool. However, its current iteration has a few limitations.
- It can only release funds to 1 person per task — Initially, the idea was that only 1 person would receive dogewhale for completing the task first and with quality. Although in practice, tasks can be quite general and allow for multiple people to complete needed tasks. An example of this was the task of translations where there were submissions on the same task for various languages by different people. The kanban contract has to be adjusted for this eventuality.
- The transparency of the dogewhale transfers isn’t as good as it could be. Dogewhale also has a Transparency Marketing Contract (TMC) which we’ll cover next, but the way the transactions were implemented on the TMC is vastly more simple and transparent and so that should carry over to the Kanban V2.
Transparent Marketing Contract
More fair, open, and transparent usage of marketing community funds
Dogewhale has a dedicated contract that holds part of the supply for marketing initiatives. For dogewhale to be transferred out of this contract it requires a purpose to be provided, as well as a social media contact of the service in question and their address. This means that every marketing transaction shows exactly where the funds are going, how much, and for what finality. There have been a few marketing transactions, and the community has shown itself happy for the fact that it’s ever so transparent the way this is done. The marketing contract has 2 ways it can release funds. Either in dogewhale or in BNB. If in BNB, the marketing contract executes a market sell on a DEX before sending over the BNB to the service address.
Dogewhale Checkpoints
Something special to look forward to
Dogewhale came to implement checkpoints that are essentially value thresholds met by the reserves. When such thresholds are met, dogewhale holders can redeem 10% of the value within the reserves. This is an exciting feature that is also not popularized yet. As of now we are currently heading to checkpoint 3 which will happen when the reserve reaches a value of $50,000 in doge, shib and floki respectively.
Upcoming Checkpoint: 3 | Value Threshold: $50,000
During checkpoint 2 we noticed some people were not able to claim their checkpoint. Upon inspection it was seen that holders that didn’t touch their dogewhale funds were not seen by the protocol for the respective checkpoint.
This was quickly rectified so that when a checkpoint is claimed, the protocol updates/carries over the holder’s balance to the next checkpoint. And as such, all that is required is for holders to claim their checkpoints as dogewhale hits them. Additionally, to make sure, a new function was added in the contract that permits updating the holder’s balance for the current checkpoint. It costs some $0.03 of gas to call it. The user interface at dogewhale.lol can detect if a wallet doesn’t have their dogewhale checkpoint updated and prompt to do so.
Summarizing: Claim your checkpoints!
What’s up with Dogewhale now?
Dogewhale is being actively developed and new features are bound to be introduced. Here’s what’s next:
- Continued beautification and simplification of the dogewhale.lol
- Development of a smart contract for contest management (submission, voting and awarding)
- Continued pushing meme production and releasing 3D assets to stimulate community content creation
- Development of kanban V2
- Navigating and selecting quality marketing partners to launch effective marketing campaigns and provide efficient usage of marketing funds
- DAO contract for community governance of the protocol along with community delegation of philanthropic actions
- Gamified quests under development to allow the community (humans, not bots) to mine 24% of Dogewhale’s supply locked on contract 0x7Ca494e23ceC26c1976c665Cb9348814dF432d30
- Assessing the possibility of introducing on-chain volume tracking along with built-in volume-based incentives rules
Dogewhale is an exciting protocol with amazing new features
Join the project now! 🚀
