Angel Protocol: $HALO — the design, the details, the launch!
TL;DR: $HALO will be offered in two phases (November: Apollo/StarTerra, December: Pylon/LBP). There is no private/VC sale, only a public sale. 20% of funds raised will be allocated to charities until a $6M funding cap is hit, at which point 100% of funds raised will be allocated to charities.
This article brings together all five of the recently published articles as one for ease of reference. See the links at the bottom to read all the in-depth articles about $HALO.
What is $HALO?
A thoughtful and intentional governance structure is paramount to ensure long-term impact for Angel Protocol. To accomplish our goals, we are creating the world’s first Decentralized Autonomous Non-Profit Organization (or DANO), whose governance will be driven by its native token, $HALO.
In partnership with Delphi Digital, we set out to design a token that captures value for the main stakeholders of the Angel Protocol ecosystem: charities, donors, and $HALO stakers. Our goal is to incentivize curating, donating, and governing whilst enabling all stakeholders to share in the benefits of perpetually growing endowment accounts.
Why do I want $HALO?
Angel Protocol exists to empower charities with financial freedom. As a $HALO holder, you have a voice and ownership in the DANO, shaping what will become the world’s largest, most effective community-owned charity. As an engaged $HALO staker, you play a critical role in identifying which charities will be included in indexes and receive automated donations, while also signalling support and increasing a charity’s visibility within the Charity Marketplace. Staking your $HALO carries great power and great responsibility.
This engagement is designed to be mutually beneficial, as you will be rewarded alongside the charity on its path to financial freedom through $HALO’s exceptional tokenomics. Incentive alignment is critical to any well-functioning system, and the DANO is no different. We believe in a philosophy of “Win & help win” (as coined by Balaji Srinivasin). Angel Protocol’s economic model ensures that while charities come first and benefit from $HALO & staking mechanisms, stakers also share in the growing financial sustainability of these respective charities.
Some key notes:
✦ There are no setup fees for charities to use Angel Protocol and 100% of donations are sent to the chosen charity. 10% of the total yield generated by endowments is redirected back to the protocol. Of that 10%, half is used to reward $HALO stakers
✦ Donations received are locked in endowments that compound in perpetuity
- Total Value Locked (TVL) in the platform never decreases*, and in fact, is programmed to grow exponentially due to its compounding nature
✦ TVL is denominated in $UST and growth is not reliant on crypto markets, as Angel Protocol taps into mainstream demand for better philanthropic solutions for both donors & charities
- Angel Protocol is market-neutral; neither $UST nor yield are dependent on crypto or equity markets, thereby providing stable returns regardless of market conditions
- TVL growth is further driven by the 50+ businesses that have pledged sustainable, automated revenue donations to Angel charities via the Angel Alliance, as well as ad-hoc NFT auctions
✦ Angel Protocol’s charitable marketplace is only the first of many use cases leveraging the same smart contract infrastructure (other use cases include donor-advised funds, microfinance, employer retirement plans, college savings funds, personal/family endowments, crowdfunding, UBI, etc). Each of these other use cases will channel revenue back to charities & $HALO stakers:
- They will subsidize performance fees paid by charities, making not only the endowment setup but also the endowment yield truly free
- Additionally, excess fees will be distributed to $HALO stakers, providing additional yield. Charities also benefit in this process, retaining a small commission on distributions. In effect, this means that charities get paid to benefit from Angel Protocol
*In exceptional scenarios for acute needs, charities may submit governance proposals to their $HALO stakers to unlock portions of their endowment principle
TL;DR $HALO stakers receive 5% of the yield on locked, exponentially compounding TVL irrespective of market conditions
More information is available in our litepaper. Delphi Digital will be releasing a detailed breakdown soon.
How do I get $HALO?
Please find our dedicated post on airdrop details here.
Donation Matching / Liquidity Mining (30%):
To ensure $HALO is held by those aligned with Angel’s ethos, the primary means of $HALO distribution will be through bootstrapping charitable giving. When funds are donated to a charity, the donated funds are matched with $HALO of a proportional value and distributed to both charities and donors.
Private Sale (0%):
There is no private sale for $HALO tokens. It’s important to us to distribute $HALO directly to the community to accelerate decentralization.
Public Sale (20%):
There will be two phases of the public sale. Both phases will include an option to farm tokens (acquire $HALO by delegating yield rather than buying outright), as well as an option to purchase tokens directly. Both phases will build in charity fundraising, with at least 20% of all funds raised going to a charitable endowment to provide in perpetuity (more details below). No KYC will be required.
Phase 1 (pre-sale, November):
✦ Farming Option: Apollo
- Purchase Price: $0.05
- Qty: 60M
- Terms: 6-month cliff, 6-months daily vesting
✦ Purchasing Option: StarTerra
- Purchase Price: $0.05
- Qty: 20M
- Terms: 6-month cliff, 6-months daily vesting
Phase 2 (token launch, December):
✦ Farming Option: Pylon
- Purchase Price: N/A
- Qty: 40M
- Terms: 12-month pool, claimable starting after 1 month
✦ Purchasing Option: Liquidity Bootstrapping Pool
- Purchase Price: Defined by participants
- Qty: 80M
- Terms: Available immediately
- Notes: A liquidity bootstrapping pool is a method of token price discovery that prevents bot front-running by starting with a high price & exerting constant downward pressure on the token price until the token is bought up by participants and an equilibrium is found. A good breakdown example of an LBP in action can be found here.
In addition to the built-in charitable contributions, the Angel Protocol team commits to a $6M cap on funds raised to finance the technical and business development of the DANO for the next 24 months.
Funds raised will be used to increase Angel Protocol’s functionality, onboard charities, market to non-crypto audiences, expand our institutional finance market, and build out the several vertical endowment applications that will channel revenue back to the Angel Protocol DANO & $HALO stakers.
Any funding raised above our $6 million runway will be invested directly into an Angel Protocol charitable endowment to fund charities in perpetuity.
The yield from this endowment will add to the automated donations that already fund a rotating index of charities aligned with the 17 UN Sustainable Development Goals & decided by $HALO stakers.
Our hope is that with community support, and by selling directly to the public rather than private investors, we’ll be able to fund future development of Angel Protocol while also raising a significant amount of money to power charities, forever.
For more about why we chose to do the above, and the prospects for the future, do take a look at this series of articles we also published recently.
$HALO in-depth article part 1: The Design — Imagine you wanted to design a crypto-token with huge fundamental value not only for token holders, but for the entire crypto ecosystem.
$HALO in-depth article part 2: Desirability — A desirable token possesses two key attributes:1) It offers utility: using it will create clear and timely value 2) It enables governance: the ability to vote on decisions that will shape a project’s future.
$HALO in-depth article part 3: The prospects — $HALO’s prospects are compelling for both $HALO holders and holders of $LUNA, the leading light of the Terra ecosystem.
$HALO in-depth article part 4: Governance — The Key to It All. So, we know that $HALO has utility via its access to endowment yields, and its overarching benefits to the Terra ecosystem. The inevitable question that arises is: “Isn’t $HALO a governance token?”