In order to provide incentives to yield farmers using the Harvest platform, the
$FARMtoken was released when Harvest Finance launched on September 1st, 2020. The token was launched without any premining, presale, venture capitalist, or investor funds, with 0 circulating supply at launch. Tokens were never sold at ICO / TGE or any kind of fundraising venture.
The FARM token is emitted on a weekly schedule over a four-year period from its launch date. Below is a breakdown of token emissions:
- 70% of the FARM tokens will be utilized as rewards for liquidity providers, liquidity provisioning on decentralized marketplaces, market-making services across exchanges, and for the creation & ongoing maintenance of any deployed strategies. (Including any payments associated with strategy development) FARM tokens emitted that are not utilized for rewards emissions are held in a Strategic Reserve wallet to be utilized as specified above. New emissions details are released weekly on the Medium blog or official Twitter account.
- 10% of the FARM tokens will flow to the Operational Treasury to pay for core team salaries, community contributor rewards and business operation expenses, including any legal fees to support Harvest operations and/or its contributors.
The specific weekly distribution of incentives is monitored by the community contributor team with the goal of providing the greatest benefit to liquidity providers and FARM token holders.
In Week 5, FARM holders voted overwhelmingly to cap the maximum supply to 690,420 tokens by reducing the emissions of tokens by 4.45% every week until week 208 (27 August 2024) which is exactly 4 years from launch. As a result, token emissions are currently set to follow this curve:
$FARMwas launched with a hard-coded maximum supply of 5,000,000 tokens which would be minted over the course of 4 years.
In this initial period, it was noted that emissions were higher than needed for the growth of the project. As a result, a total of 14,850.108
$FARMtokens were burned irretrievably to 0xffffffffffffffffffffffffffffffffffffffff to decrease the total circulating supply.
Today the Harvest protocol has moved away from formal voting and instead comes to consensus through contributor proposal and discussion. The FARM token does not give holders a vote on incentive distribution, strategy deployment/updates, addition/removal of vaults, etc. When voting is utilized, it is used for higher order strategic decisions, such as the above mentioned supply reduction.