Faith plays an integral role in the Temple ecosystem. First, let’s go over some important details.
What is Faith?
Faith is not a token. It is an on-chain consumable counter which accumulates for your wallet. It is non-transferable and represents your claim on revenues generated by the protocol.
Each month, as revenue grows, your Faith represents your claim to your share of Temple revenue.
How do I gain Faith?
The first distribution of Faith is the Faith Airdrop. This is launching today and will reward those that were most faithful during the Temple AMM launch.
Moving forward, Faith will be earned by locking and verifying your TEMPLE tokens.
How do I use Faith?
There will be three simple Faith processes:
1. Verify & grow your Faith to own your share of revenue
2. Burn Faith to request revenue redemption
3. Redeem revenue to collect your tokens
Note: The following numbers will be calibrated
1/ Verify & grow your Faith
When you lock TEMPLE you receive wenTEMPLE. Locking details:
- Minimum 1 month lock, maximum 4 year lock
- You will receive a multiplier on all Faith earnings
- 0 to 4 years outstanding lock time = 1.0x — 1.2x multiplier (linear) [under review]
- You can refresh the lock length at any time
The longer you lock your TEMPLE, you will receive a slightly larger Faith share each month relative to your share of TEMPLE supply.
Approximately once a month, wenTEMPLE holders will need to verify their TEMPLE balance to grow their Faith.
Receive Faith = # wenTEMPLE x ritual multiplier x lock multiplier
The ritual multiplier is set by the game-master. This is normally 1.0x but there may be slight variations to help manage demand/supply.
This simple verification process allows you to grow your Faith which is like a unit of account for your share of Temple revenue.
2/ Burn Faith to request revenue redemption
After the Verify time window there is an opportunity to burn Faith. This signals an intent to redeem revenue. All addresses that burned Faith will be whitelisted to claim.
The total claim on the revenue pool is: Total Faith burned by all users / Total outstanding Faith = % Revenue Pool that becomes claimable.
The portion of the Faith supply that was not burned represents the farming reward that will be retained and used to compound yields for the next period.
3/ Redeem revenue for burned Faith
After the Protocol determines how much Faith was burned, it will perform market operations to liquidate necessary assets and deposit the revenue rewards into the claim contract.
You will claim: Burned Faith / Total Burned Faith = % Claim Contract Claimable
Q: What happens if I don’t verify?
You lose your share of revenue for that month.
Q: When do I need to verify?
With every full moon. We are working on reducing gas cost as much as possible and will soon move to L2 to reduce this even further.
Q: Do I need to burn and redeem my Faith for revenue each month?
No. If you let your Faith accumulate your bags will auto compound.
Why lock for a long time?
Most Templars are part of the Temple because they want long term wealth creation. Our current strategies represent the very best of defi, receiving benefit from the Frax wars, Curve wars, bribing platforms, and more.
However, sometimes we need some liquidity, or we are relying on the interest from our investments. For this reason, we give access to value in two ways while locked:
First, claiming revenue will be available even while locked. This allows people to collect and claim as and when they need regardless of lock length.
Second, we are working on a lending facility that will allow non-liquidatable loans to be taken out against IV while locked.
These two mechanics provide interest and capital availability, making longer lock times as friendly as possible.
So you can lock for years, earning maximum Faith, but still have flexibility when you need it.
This locking and Faith based revenue share model provides an excellent opportunity for long term believers to stake and chill, and be rewarded for doing so. Our mission now is to help the market understand the leveraged farming power of $1 invested in TEMPLE compared to utilizing a traditional stablecoin farm.
The Faith Airdrop
The Faith Airdrop kicks off our Faith system with a one-time reward for staked Templars who stayed with us during the volatile market conditions and AMM launch. The purpose of the Airdrop is to reward those that held their OGTEMPLE and did not unstake or sell.
The terms are unchanged from previous announcements and considers that many people transferred their OGTEMPLE to a cold wallet, and minimize penalties for these people, while not rewarding those that did sell all of their OGTEMPLE via their original address or another.
The snapshot was completed on Monday, January 17, 2022 01:00 AM (UTC).
After contemplating many designs, the following criteria was selected by the Product Team (led by the Enclave of Logic):
- Consider every address that held OGTEMPLE between AMM launch and the snapshot date
- Over this time, determine the time-weighted OGTEMPLE held by this address (ie, 10 OGTEMPLE held for 50% of the time window = 5)
- If the address sold >90% of their OGTEMPLE, it does not qualify for Faith
- If the address unstaked OGTEMPLE via the queue at any time, it gets a reduced amount of Faith in proportion
- If the address bought and staked more TEMPLE, it gets more Faith in proportion, capped at 150% of their originally minted amount
- If the address bought and staked more AND did not sell any TEMPLE at all, it gets an extra +25% bonus.
You can view your estimated Airdrop here: Dune Analytics dashboard.
Wen Faith? Wen Airdrop?
Airdrop is now live (~7pm PST 3rd February) and you will have ~10 days to claim: https://templedao.link/faith-airdrop
Faith system and full Stake and Chill v2.0 will continue to be unpacked in Discord, Twitter, Call to Prayer, and be released over the coming weeks.