BTRFLY is the governance and revenue-sharing token of the Redacted Cartel protocol.
BTRFLY is a low-cap asset that represents the protocol's native governance or utility token. This asset is exposed to the underlying risks of Redacted Cartel, a protocol rated as Risky. The asset has a fixed supply.
BTRFLY is highly correlated to the overall market.
BTRFLY is a meta-governance token that is backed by its protocol-controlled value (PCV) including bonded, farmed and acquired governance assets (i.e. CVX, CRV and FXS). BTRFLY also provides governance voting power to holders to decide on the future direction of the protocol. Users can lock their BTRFLY tokens for the duration of an epoch (16 weeks) to receive rlBTRFLY (revenue-locked BTRFLY). rlBTRFLY holders earn revenue generated by Redacted's treasury and ecosystem of products.
BTRFLY launched with an initial supply of 100K tokens. In the V1 tokenomics, BTRFLY was a rebasing token with an uncapped, constantly increasing supply due to the rebasing mechanism, bond emissions, and DAO fee emissions. In Redacted V2, the protocol will transition to a fixed supply with a more sustainble business model generated from treasury farming and revenue from governance products. The new tokenomics aims to establish a 5M supply cap, a new supply schedule, and transition from rebasing to vote-escrow model using rlBTRFLY. The V2 token distribution includes 9% to founding team, 6% to investors, 10% to Olympus, 15% to DAO reserve, 22.5% from V1 supply migration, and 37.5% reserved for inflationary pulse emissions. The pulse emissions will be used for strategic initiatives to bootstrap current and future products (rlBTRFLY, Hidden Hand and Pirex), liquidity programs, seed rounds, DAO treasury swaps, and other protocol-owned value mechanisms.
BTRFLY accrues value to token lockers (rlBTRFLY) which earn revenue from Redacted’s treasury earnings as well as from its ecosystem of products. rlBTRFLY holders lock their BTRFLY tokens for 16-week intervals with the revenue split from its three primary revenue sources: Hidden Hand (50% revenue split), Pirex (42.5%) and treasury farming (increase from 15% to 42.5% as the Redacted treasury increases). The size of the treasury is evaluated at the beginning of each quarter to determine each upcoming quarter's revenue-sharing split.