Tokenomics

Rand Token (RND)

Rand Token, abbreviated to RND, is an ERC-20 governance token with utility functions native to the Rand ecosystem.
The Rand team wants to give as much decision-making power as possible to our community by decentralizing Rand Network from its launch until it becomes a Decentralized Autonomous Organization or DAO. Please read our Governance page for more information about your roadmap to becoming a DAO.
While Rand supports FIAT for front-end operations and USDC for its back-end yield strategies, the RND token serves multiple key functions for the Rand Yield Aggregator and the network’s stakeholders.

RND Features

In addition to its function as the main medium for transaction fees, Rand users will also need RND in order to access several features and benefits of the platform:
  • Governance.
  • Higher sustained APYs.
  • Access to exclusive Community Public Vaults.
  • Safety Model staking.
  • Free Withdrawals.
  • Penalty fees paid in RND for early withdrawals.
Governance
Rand takes a phased approach to employ various governance mechanisms that will allow it to progressively decentralize and ultimately be governed by the majority of network stakeholders. We take much of our inspiration from Polkadot for technical and governance mechanism design, and adapt it to best serve the Rand Network.
Higher sustained APYs
All the token holders with an X% of their balance in RND tokens will be able to access higher APYs than regular users. These better APYs will allow them to achieve their goals faster or with less initial capital.
Safety Module staking
Users or investors will need RND to join the safety module and receive sustained monthly rewards coming from trading fees plus yield produced via the Rand Yield Aggregator.
Rand Community Vaults
Users will need RND to join the community vaults. In this special vault, users will be able to earn more than just yield. We will be giving away special and exclusive Rand NFTs as well as RND airdrops to bootstrap network liquidity over the short term.
Firstly, all special giveaways that we do with strategic partners will be done through the Community Vaults. By using our own token to incentivize these Vaults in the short term, we can create bigger prizes and attract more users to the platform.
Secondly, once we start to scale, it will not be necessary to use our token for extra incentives in the Vaults. This method will enable us to decrease the token velocity over time.
Finally, once we start scaling, some of the profits that Rand makes will be used to buy back RND and give it back to the community through grants and bounties.
Free Withdrawals
Users will have free withdrawals during X period of time if they hold Y% of their balance in RND tokens.
Penalty fees
Last but not least, users that want to leave a Private Vault before it ends will need to pay a penalty fee in RND. All the network’s transaction fees will be paid using RND.

Token Distribution

At the time of launch, there will be a total supply of 200 million RND tokens. Of these, 17.9% of the total supply will be reserved for our strategic private sales and our crowdfunding campaign sale. The Presale period is when we will onboard the right investment partners to help the project scale from a financial point of view over the longer term. At this stage we will also give special access to all community members who have supported Rand from the beginning.
The remaining 82.9% of the supply will be distributed as follows:
Treasury and Ecosystem
The 48.1% of the supply will be allocated as the Ecosystem Treasury fund to be reserved for growing Rand Network. This includes paying for Gas transaction fees for transactions as well as grants and bounties for community contributors. With this kind of program, we expect to build strong relationships with strategic community members that will help us with marketing campaigns, technical design, global ambassadors, and channel moderators.
In the short term, Rand Treasury will be streaming tokens to the Safety Module in the form of a Liquidity Mining program to extra-incentivize stakeholders to lock RND tokens in the Safety Module.
As the percentage of yield going to the Safety Module increases with network adoption and increased contributions from the Yield Aggregator mechanism, the Rand Treasury will be able to decrease the amount of tokens it has been streaming to the Safety Module to bootstrap its initial liquidity.
Lastly, Rand Treasury will be used to maintain a healthy price for RND token in case of sudden price volatility in the market. Funds in the Treasury can only be used if approved by Council voting.
Rand Team
20% of the supply is distributed among all team members. Since the beginning of 2021, the team has been growing and we are proud to say that we have assembled one of the most competent teams in the Web3 space.
Early Backers & Advisors
The 14% of the allocation is dedicated to rewarding institutional partners and individual advisors that help us push the project since the day of its inception. These backers gave us the connections, training, and methodologies to follow to make sure we accomplish all our goals.

Use of Funds

Liquidity Reserves: 25%
Funds raised will be allocated to cover the necessary operational costs and the short-term funding to cover over-expected withdrawals on both FIAT or Crypto off-ramps, shortfalls in human resources, and/or short term liquidity injections for different exchanges that will list the RND token.
If at any point we experience a surplus in liquidity reserves, we will use these reserves to produce yield to overfund both public and private vaults in order to maximize the average APY.
Marketing and Sales: 25%
Funds raised will be dedicated to our marketing plan and sales funnel for mass user adoption. Because our target audience is the mass market, we need a very strong and aggressive marketing plan to break the conceptual and technological barriers that plenty of Gen Z and potential users still have about DeFi and blockchain.
Team Growth: 15%
Funds raised will be dedicated to growing our team. As we grow Rand Network, we want to make sure we can hire the best professionals in the Web3 space when expanding our team.
Safety Module (SM): 15%
Funds raised will be locked up in the Safety Module to protect against any short-term shortfall event that we experience. If we suffer a catastrophic event, we will first use the funds in the SM to collateralize a loan to repay the shortfall. Once this is repaid, we will repay the loan with some of the yield produced from liquidity reserves.
Legal and Regulatory: 8%
A portion of funds will be allocated to cover necessary legal and regulatory costs.
Community Development: 8%
This allocation is specifically for organizing future events as well as bounties to reward the Rand community for their help in specific areas of network development.