Botto is about to turn two months old. For those who haven't been following, Botto is the decentralized art project Carbono, along with the Eleven Yellow team, has been involved in for more than a year, and that officially launched on October 8th.
This is how we introduced Botto to Carbono insights readers, and this is the 1-month recap we did. Botto has been on tour recently, with team members, like Mario Klingemann, our own Raúl Marcos, and more visiting Madrid and Miami. You can therefore find some good explanations in the press about Botto (this is one of my favorite explainer articles so far).
Long story short, Botto is a project with two main faces: it is an algorithmic, generative artist, that produces 350 fine art pieces weekly. But it also is a community of thousands of people, gathered around the $BOTTO token, who participate in governance mechanisms over the artist.
Today, we'd like to briefly overview the $BOTTO token, how we distributed it initially, and why.
The existence of the token was a necessary condition for Botto to happen. They create an incentive structure around a project that requires human implication. to put it bluntly, Botto the AI needs human labor for curation and training purposes. The community also does a job of awareness-raising, visibility, and education. That labor needs to be rewarded, and without crypto, this would have been next to impossible. At the launch, 100M units of the Botto token were created. Botto is an ERC-20 token built on Ethereum. Token holders were given voting rights and would participate in the proceeds of auctions. But how was Botto distributed, and why?
The team defined a distribution meant to serve several purposes:
Team. The team was allocated 20M BOTTO, with a vesting period recently extended to two years. This means the team cannot sell their tokens as proof of engagement and implication. We want Botto to thrive in the long term and not be a source for quick revenue, and this is the way to hard code this commitment.
Airdrop. First of all, the project needed visibility. So 20M tokens were airdropped to people who had interacted or owned some relevant related NFT projects, such as ArtBlocks or Bored Apes Yacht Club. This was meant to provide awareness across tight-knit communities that would inform their members about the initiative.
Liquidity mining program. Once you've launched a token, you want people to be able to purchase it. DeFi is the way to do this for a project with no access to centralized exchanges. We created a liquidity pool in Uniswap, ETH-BOTTO, where token owners from all categories (team, treasury, airdropped users) could lock their BOTTO for others to come and buy. Those who participated in the pool were eligible for the liquidity mining program rewards, which had 20M Bottos allocated. (The project recently modified its incentive structure and has partnered with OlympusDAO, but that's a pretty long and complex story)
Treasury keeps 30% of the $BOTTO issued. That money will be used for everyday purposes such as marketing and will become the community's budget once the project is fully decentralized.
We hope this peek into Botto helps you get closer to the workings of a project. Botto has DAO, DeFi, and NFT ingredients, and working on it is a mind-blowing adventure we are eager to share.