Thesis

1. LBP/Genesis

One of the key issues that made the 2023-2024 cycle unbearable and fueled the rise of memecoins was the extreme manipulation by venture capital cabals, which drove unrealistic valuations for many promising altcoins. CZ highlighted this problem seven years ago in this article. Back then, it seemed like common sense, but unfortunately, many projects have since ignored this wisdom. Almost all crypto projects are startups, and startups naturally come with a high risk of failure (though the rewards can be high when they succeed).

At Berally, we need funds to create enough runway to turn the project into a successful business. However, we don't want to raise excessive amounts of money, only to face a death spiral two years down the line like many current crypto projects. That's why we're adopting the Fjord LBP model.

Reason?

We firmly believe in Adam Smith's theory of the invisible hand. The LBP model is the perfect ICO framework to demonstrate this. By allowing the market to determine the fair valuation of the project and shaking out weak hands and non-believers from the start, we give the token the room it needs to grow in the future. It doesn't matter to us how much we raise from LBPs. We’ve self-funded our way into building a fully functional product, a process that would have taken VC-backed projects millions and years to develop. We believe the market will ultimately bring $BRLY to its true valuation.

2. A Fair Distribution Method

There are different schools of thought: some argue that projects shouldn’t allocate too much to VCs, while others say that too much allocation to the community doesn’t result in price appreciation.

While price is not our primary focus, we are dedicated to building a self-sustaining token economy. Our approach is simple: the distribution should reward loyal contributors to the platform.

The following contributors on Berally will receive token distributions over five years:

• Managers: Users who actively create pots and manage assets efficiently for others.

• Liquidity Providers: Users who deposit into these pots and let others manage their assets.

• Investors: Those who purchase tokens during the LBP.

• Team: We firmly believe social trading is a must on Berachain, the next Ethereum killer. Naturally, we want a significant portion of project tokens.

We also recognize that tokens are not "magic internet money." They must be sustained through platform-generated revenue and profits.

The key purpose of the token is to return value to the platform’s contributors. Token holders are encouraged to lock up tokens in the form of $revBRLY. In exchange for the risks they bear, holders will receive a share of Berally’s fees and revenue based on their pool shares.

3. Sustainability

A profitable business model with a sustainable tokenomics structure is our ultimate goal.

To achieve this, we focus on two things:

• Token Release Schedule: We ensure a steady emission over a prolonged period, giving the market time to absorb each supply shock.

• Revenue by Full Unlock: By the time the tokens are fully unlocked, the platform should generate enough revenue and profit to redistribute to token stakers, countering selling pressure. It should also incentivize traders to keep the ecosystem running smoothly.

After all, we aim to create a hyperstructure.