What is the White Lotus
The White Lotus will launch May 8th on Arbi, join the telegram.
The White Lotus is a proof of concept designed to test the limits of a token generation event, where incentives are aligned and risks are transparent among all participants.
$LOTUS is not a DAO or gov token, it's more like a cooperative designed around a simple automatic market-making algorithm built on top of Trader's Joe Liquidity Book, $LOTUS's simple design ensures deep liquidity, total immutability, and fair distribution - all without relying on VCs, token inflation or insiders.
A cooperative is an organization which is owned and run jointly by its members, who share the benefits.
$LOTUS runs autonomously from day 1.
Problem
When compared to ETH, most tokens tend to decrease in value over time. Initially, they may have complex inflation and incentive structures, but eventually they must resort to strategies such as burning, locking, staking, or introducing new tokenomics to address the fundamental issue of supply and demand.
As market participants have become more savvy about the longevity of these incentive mechanisms, token cycles have accelerated. As a result, partially backed assets have gained popularity as a viable alternative.
The $LOTUS mechanism is designed to thrive in the long run and partially ensure its value relative to ETH while benefiting early adopters.
Liquidity is always available without incentives or inflation, and downside risk is known at all times.
“The lotus flower blooms most beautifully from the deepest and thickest mud.” – Buddhist Proverb
Solution
To better understand how LOTUS works behind the scenes, we recommend learning about Trader's Joe "Liquidity Book" first by checking out this link
The total supply of LOTUS is 30,000,000 tokens, and it is released through a Trader's JOE pool. The first tokens start at $0.20 and last tokens are $4.2. Initially, the liquidity is separated into 5 bin increments (5% in price), as shown in the "initial distribution" graph below.
When users get LOTUS tokens from the pool, all of the ETH remains locked in the pool as liquidity.
When users sell $LOTUS, a 10% tax is applied, of which 8% is burned permanently. The remaining 2% is directed to a single staking vault to reward $LOTUS stakers.
LOTUS has an automatic liquidity rebalance mechanism. Every 5 bins the price moved, a liquidity rebalance is automatically executed. This removes all ETH side liquidity and re-distributes it as follows:
- 10% of the total ETH in the pool as direct trading liquidity in a tight spread of 1 bins away from the current active price.
- The remaining 90% of the ETH is all concentrated into one bin (floor price) by calculating the ETH divided by all tokens in circulation. This creates a robust mechanism for a floor price that can absorb the selling of all tokens in circulation at any given time if there is no demand to hold $LOTUS.
As the protocol grows, the floor price deviates further from the spot price. However, depending on volumes the tax on sells grows the backing.
If the price is at the floor, the 8% tax fee won't be burned but instead be sent to remaining stakers.
Initial Liquidity Distribution
Graphs are in USD and scaled down for clarity
Starts at $0.2 and goes up to $4.2 per token.
Example liquidity after rebalance
10% of ETH TVL liquidity to support tight spread. 90% of TVL to support 1 floor price. LOTUS that was in the pool stays locked in the pool untouched for further upside
Bootstraping a Flywheel
As we have observed in recent times, with meme coins and other crypto experiments, there is no fixed formula for bootstrapping a community successfully.
The White Lotus aims to create a self-sustaining ecosystem, where volume drives liquidity, leading to an influx of users, builders, and integrations, while rewarding early adopters in every step
Supply, Inflation, Dev Rewards
$LOTUS does not have any inflation or pre mine. The initial supply is the 30mill tokens that start in the pool, the total supply goes down over time thanks to the tax on sells.
There is a 2.5% buy tax when getting tokens from the Joe pool, this will be the only team rewards which aligns incentives and distributes rewards gradually over time based on usage.
The token contract has no additional minting functions.
Disclaimer: LOTUS was releassed in a fair way via Trader Joe outside of this website, The purchase of LOTUS tokens does not constitute an investment contract or any form of investment advice. The White Lotus no guarantees or promises about the future value or performance of the token, and the value of the token may fluctuate significantly.
Also note that it might be ilegal for you to own LOTUS depending on your jurisdiction, check with your local laws.