L2POOL Token

L2POOL is what we call the "global system diversifier token."

Utility

L2POOL is a token with a finite supply that’s minted over 10 years using a root function (resulting in a heavily decreasing mint rate over time) and, when burnt, allows for a pro-rata withdrawal of the tokens sitting with the L2PAD Protocol Portfolio Pool.

In other words, L2POOL tokens are claims against the L2PAD Protocol Portfolio Pool assets. providing participating users with exposure to all project IDO tokens.

Given that the L2POOL supply is capped at 1,000 tokens, and given the L2PAD Protocol Portfolio Pool properties described above, we conjecture that the intrinsic value of the L2POOL token will strictly increase over the long-term.

Distribution

The only way to acquire the L2POOL tokens (there’s no premine) in the Markowitz epoch (see below) is to stake L2PAD tokens on the platform - this continues until 20% of the L2POOL tokens are minted. The only way to acquire L2POOL tokens during the Levine and Szabo epochs is to stake the liquidity tokens acquired from offering L2PAD liquidity on a DEX. In either epoch, the distribution follows a strictly pro-rata rule (i.e. is linear in stake size).

Deflation Mechanics

Upon reaching a 1,000,000 USD equivalent of aggregate funds raised, a system fee is enabled. This feature adds a small fee on top and amounts to ~5% of the total funds raised. The proceeds from collecting the system fee are used to buy back and burn L2PAD tokens - one-third of the anchor charge is burned.