Project Symbiosis: A Comprehensive Breakdown of the Whitepaper

In this article, we look at the newly released $ENTER whitepaper and examine its most exciting and crucial elements, its impact on OG $NFTART holders and how you can earn $ENTER free of charge.

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@enter.artPUBLISHED 19TH JULY 2023

veENTER is a vesting and yield-boosting system that allows the enter community to participate in governance and to receive emissions of $ENTER from the designated gauges. By accumulating veENTER, governance participants can propose and vote in governance proposals, earn rewards and help lead and shape the future of the enter protocol. 

With the introduction of $ENTER to the enter platforms, $NFTART will function as the utility and payment token of the enterverse, while $ENTER will remain the governance and reward token. $ENTER introduces several reward mechanisms that will incentivize growing the NFTART-BNB LP, taking $NFTART tokens off the market and increasing volume. As such, we envision the two tokens to have a symbiotic relationship that works to benefit both coins and the entirety of the ecosystem.   

At the heart of everything is the concept of voting power. 

Voting Power, APs and Governance Procedures

Voting Power represents your influence in governance and allows you to propose and vote for proposals. Voting Power can only be gained by locking $ENTER tokens in a time-lock of your choice and depends on three factors: 

1. The amount of $ENTER committed 

2. The duration of your time-lock in months 

3. The multipliers you’re eligible for

Participants can lock their tokens for a maximum of 24 months to gain the biggest multiplier. 

You can also gain a multiplier by staking up to four Stray NFTs for 0.025 per NFT. For an exact overview of all multipliers and the formula for calculating Voting Power, refer to the ENTER Whitepaper. Voting power is non-transferable but can be delegated to a hot wallet or another governance participant if you believe someone else can make better decisions than yourself. 

As a governance participant, this means that you’ll be awarded influence in the enterverse based on how big your stake is and how committed you are to the longevity of the protocol. 

There are two phases to governance in the enterverse: deliberation and consensus. 

In deliberation, you can formulate drafts for governance proposals that are thoroughly and critically discussed in the community. If the proposal receives 25 votes in deliberation, it may pass to the consensus phase.

In consensus, the proposal is put to a vote on snapshot. Different proposals have different risk levels, so the enter protocol utilizes multiple aggregation procedures and quorum demands to turn a plethora of individual votes into a community consensus. 

As a governance participant, this means that you’ll be able to participate in voting, of course, but also in formulating governance proposals you did not propose yourself. 

For low-risk proposals, we use simple majority with a 10% quorum, meaning that a proposal needs at least 10% participation and a >50% majority to pass. The social epistemological dynamics at play here mean that the larger the group of participants, the higher the general reliability of the group, and thereby the likelier it is for the group to make the right decision. 

For higher-risk proposals, we use supermajority with a 20% quorum, meaning that a proposal needs at least 20% participation and a >66.6% majority to pass. The supermajority procedure increases negative reliability at the cost of positive reliability, meaning that it becomes less likely for the group to make a wrong decision and less likely for the group to make a right decision. 

The ENTER Protocol introduces reward gauges to the enterverse, representing new ways to earn rewards for contributing to the health of the protocol. All rewards will be paid out in $ENTER, so $NFTART will cease entirely being used as a reward token. This will reduce sell pressure on $NFTART and work toward a positive price impact. As an $NFTART holder, this gives you a clear avenue to earn $ENTER free of charge and new dynamics that work to decrease price volatility and sell pressure. 

The gauges incentivize the following: 

Growing liquidity for $NFTART

You can earn $ENTER by providing liquidity for NFTART-BNB. This grows the liquidity pool and reduces volatility for $NFTART. If you’re already farming NFTART-BNB for $NFTART, you do not have to split your pair but can withdraw it from the existing smart contract and deposit it in the new one once it goes live. 

Growing liquidity for $ENTER

You can earn $ENTER by providing liquidity for ENTER-BNB. This grows the liquidity pool and reduces volatility for $ENTER. 

Governance Participation

You can earn $ENTER by staking $ENTER for veENTER. This incentivizes governance participation and locks up $ENTER tokens to reduce sell pressure. 

NFT Volume

You can earn $ENTER by participating in the NFT listing and collection bidding pools. By listing eligible NFTs and by placing collection bids in the required price ranges, you will earn $ENTER for the duration of your bid and listing. This incentivizes volume on both sides of the trade, easing trading and providing liquidity for the selected collections. 

Tokenomics and Emissions

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The initial token distribution allocated 50% of the supply to the Community Treasury. 10% of this is unlocked immediately, and the rest is vested linearly over the next 4 years. The Community Treasury can be spent solely at the discretion of the governance participants and requires a simple majority or supermajority for spending less or more than 1% of the Treasury, respectively. 

20% of the supply goes to IDO partners, and 15% is allocated to a team wallet. 10% of the team allocation is unlocked immediately, while the rest is vested linearly over the next 2 years. The remaining 15% is split amongst R&D, DEX liquidity, advisors and private investors. 

Initially, the token has a 20% inflation rate, halving every 12 months. This allows the protocol to bootstrap itself until sufficient volume is achieved. Like all other parameters in the protocol, the inflation rate is subject to governance. It can be changed as long as the community can pass a proposal in accordance with the relevant AP and Quorum. 

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Admin Rights

To ensure that the protocol is off to a good start and that it remains flexible with regard to introducing new prominent NFT collections and other strategic decisions, the enter team retains the following admin rights: 

  • Add additional functionalities to the protocol
  • Add new or update existing NFT listing pools 
  • Update, change, or adjust protocol parameters 
  • Upgrade Smart Contracts and assets
  • Expand the protocol to other chains 
  • Pause gauges

Overall, the ENTER protocol introduces new and exciting opportunities to participate, govern, and earn for the entire community. The voting power dynamics mean that the users with the biggest stakes committed to the protocol's longevity will have the most influence in shaping the protocol moving forward. The aggregational procedures facilitate positive reliability for most proposal types while facilitating negative reliability for higher-risk proposals to ensure general reliability in decision-making. The gauges incentivize liquidity provisions for the two tokens, governance participation, and less sell pressure for $NFTART and NFT volume on the marketplaces. The retention of key admin rights allows for a safe and prudent transfer of power to the community without compromising competitiveness and flexibility in the crucial first months of the protocol. 

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