Sustainability Agents

Nurturing Sustainability within the CIFI Ecosystem

Circularity Finance is deeply committed to fostering a sustainable ecosystem that not only thrives but also gives back to its participants. This is where our 'Sustainability Agents' come into play—a concept designed to ensure a continuous cycle of rewards and reinvestment within the protocol. The sustainability agents are crucial components of the CIFI ecosystem, playing a pivotal role in maintaining and replenishing the ecosystem's rewards pool.

The Role of Sustainability Agents

The ecosystem’s rewards pools, particularly the Governor Seat Rewards, are consistently refueled through the concerted efforts of two distinct groups:

  1. Real World DAO: A decentralized collective focused on implementing and managing real-world projects and initiatives that align with the values and goals of the CIFI ecosystem.

  2. REFI DAOs: A group of decentralized autonomous organizations that operate within the REFI sector, promoting regenerative finance and contributing to sustainable development.

A Strategic Tax System for Reinvestment

To ensure the vitality and longevity of the ecosystem, a 40% sustainability tax is levied on these two sustainability agents. This tax is strategically allocated as follows:

  • 20% to Governor Seat Rewards: This portion of the tax is channeled directly back into the Governor Seat rewards pool, ensuring that it remains well-funded and continues to incentivize participation and governance within the ecosystem.

  • 20% to Proof of Reserve Vault: The remaining tax is sent to the Proof of Reserve vault, where it is saved in the form of CGO tokens. This action not only bolsters the reserve but also supports the overall financial health and stability of the ecosystem.

The introduction of this sustainability tax allows the DAOs to retain 60% of the earnings obtained from their acquisition of governor seats, which they can then redistribute to their communities or invest in new opportunities, promoting growth and active economic participation.

Ensuring Stability Pool Efficiency

The health of stability pools is of paramount importance to the resilience of the CIFI ecosystem. To maintain these pools:

  1. Stability Pool 1: This pool is periodically replenished with $CIFI tokens collected from micro-service fees. These tokens are a byproduct of the ecosystem’s extensive suite of user-centric services, from token creation to educational platforms.

  2. Stability Pool 2: $REFI tokens, accrued through Smart Asset deployment fees each year, are used to top up this pool. These tokens stem from the deployment of assets within the ecosystem, emphasizing the growth and scalability of the platform.

Embracing Ecosystem Growth through Sustainability

The Circularity Finance ecosystem is designed to be self-sustaining, promoting a cycle of growth, reward, and reinvestment that benefits all participants. By implementing the sustainability tax, Circularity Finance ensures that its rewards and reserve vaults remain adequately funded, securing the long-term prospects of the ecosystem and empowering its users.

This innovative approach reflects a broader commitment to sustainability, not just in an environmental sense but also in terms of economic resilience and prosperity. It exemplifies how decentralized finance can evolve to incorporate sustainable practices that contribute to the overall health and growth of the ecosystem. Through the diligent actions of its Sustainability Agents, Circularity Finance is poised to maintain a robust and rewarding environment for its users, setting a precedent for responsible and sustainable protocol management in the DeFi space.

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