Tokenomics

$BAGS Token Drives OnlyBags

We aim to make OnlyBags a community-driven project where the $BAGS token acts as the native utility and governance token to the protocol.

The $BAGS token is designed to have native utility within the OnlyBags ecosystem

• Governance: Token holders have the power to participate in the governance of the platform, making decisions on key aspects such as feature development, community guidelines, and future directions.

• Access to Additional Features: Holding tokens provides users with access to exclusive features and functionalities within the OnlyBags ecosystem (more on this soon!)

• Reputation multiplier: Staking tokens increases the reputation points that are earned on OnlyBags.

• Staking: when a token moves to raydium 5% of the available supply that is not in the bonding curve will be taken and distributed across stakers who can decide to sell them back for $BAGS

• Platform Currency: Users can use $BAGS as a currency on the OnlyBags platform to trade memecoins

$BAGS is distributed to users

OnlyBags uses token rewards to incentivize increased community-based participation while creating a more fun experience. Through token rewards we aim to reward users who have provided value to the platform and its community. In this case we would reward active users who create, support and actively engage in memes coins. We use retroactive airdrops in multiple waves where "value generation" is defined based on reputation (see reputation section). This approach is proactive in the sense that it incentivizes behavior for future token distributions but retroactive in the sense that it distributes airdrops after the fact. The token reward is thus a function of user reputation - the function is not made public to discourage sybils but it is an increasing function of reputation with a maximum cap in order to have a distribution that is not very heavily skewed towards whales. We allocate a fixed percentage of tokens in each airdrop.

Community (60%):

• This token allocation is distributed to the community in multiple airdrops as rewards for user activity, staking and meme coin farming.

Team (15%):

• This token allocation goes towards the core team to continue developing and managing the platform.

Early Supporters (5%):

• This token allocation goes towards early supporters from the community who helped to develop and grow the platform over time.

Ecosystem and LP (15%):

• This token allocation goes to liquidity provision to the ecosystem.

The token release schedule looks as follows with a focus on moving towards decentralization and community ownership.