After the first few days of running the first and main fund of the Phoenix ecosystem, I’ve learned a few things and I want to try them out. There are certain sensitivities and preferences from the community I’ve learned that have supported or disagreed with my initial assumptions. Now that we’re beginning the second iteration, I want to see if I can hit the nail right on the head. Let me make this very clear; the main star of the show is and will always be Phoenix Fund ($PHX). Any new additions, whether short or long term will always work to augment and further support PHX. A year in crypto is a decade anywhere else (except maybe AI) and by the end of the road PHX should be far more than just a trading fund token of investment.
Well, personal input out of the way now so let’s get cracking. In the mythology of the Phoenix, the life cycle most commonly goes this way: Adult, Fire/Blaze, Reborn from ashes, Adult. This upcoming project is the Fire Stage. In terms of Astronomy, this can be related to the Supernova stage in the life cycle of a star. It goes blazing hot and becomes the brightest it’s ever been right before going off. This doesn’t mean Phoenix will end here, as there is rebirth after its Supernova stage. Details of that stage will be revealed later on when it becomes more relevant. For now, let us focus on the Supernova Fund.
The Supernova Fund is entirely representative of its namesake. In my opinion, it is also closer to the very heart of Defi: aggressive, bright, powerful, and everything is on fire. The plan is to set the same (well, almost the same) targets of its predecessor. The program itself will last only two months, and this time the profits of the fund will go ENTIRELY into compounding the capital. It’s only two months so this is important. Due to this nature, this fund will not have any buybacks throughout its lifespan. However, as a measure of trust and security, the buyback will happen before liquidity unlocking. Same exact idea as the first fund’s: it will be done via smart contract. Think like a bounce.finance sale but in reverse, where Supernova fund tokens go in, and ETH comes out, at a fixed swap rate.
There is one more change to this specific fund, given that it compounds much faster and ideally we do raise the full amount. This change is that the fund will be limited to only to trading extremely liquid pairs such as BTC, ETH, LINK, and the like, and it will always be on margin. I still want to be sure we don’t crash the entire fund with risky moves so I will fully commit to using up to 3X maximum leverage only. I will still continue my practice of entering “ladder” positions or “nibbling” my entries to also reduce my risks in trading. There will be a separate channel for the Supernova trades. No suppression fund, no burning, just full compounding and buyback happens for all existing remaining tokens at the end of 8 weeks.
The initial (and non-mintable) supply will be allocated in the following manner:
Total Supply: 100,000 tokens
Round 1: 20,000 tokens
Round 2: 60,000 tokens
Special round: Leftovers from first 2 rounds
(Special Round will be held outside of Bounce.finance, for those with issues)
Liquidity: 20,000 tokens
Like last time, any unsold tokens will be burned but that will be the only burn.
Oh, and yes, no airdrop this time.
Our team’s dev will be in charge of creating this end-of-the-road smart contract and I assure everyone he is just as ambitious as both the project and I. I have full faith that this will go perfectly smooth, and it will open up further roads we will be able to go into in the future.
Cannibalization and Support
Given this announcement, it is time to address the elephant in the room. I can hear the comments already, “How is this going to help PHX holders?! We’re getting screwed and this is a moneygrab!!”. I hear you, I hear you. But sit down and listen first because here comes the important part of how this helps the brand and ecosystem.
This is just an extremely short term fund, with a lifespan of only two months. At the end of each month, 1% of the final fund size will go to the trading capital and suppression fund of Phoenix Fund. Moreover, I will only receive 50% of the liquidity of Supernova’s liquidity release. The other 50% also goes to the trading capital and suppression fund of Phoenix Fund. 70% of these amounts go to the trading capital and 30% go to the suppression fund. This may not directly raise the price upon impact but don’t forget, the end of Phoenix Fund’s one year, both those funds go back to re-buying all remaining tokens. Therefore, since the capital is boosted (with a pretty healthy injection I may add), the book value isn’t changed but the value added to the entire project is very healthy to say the least, and only gets more valuable the longer term one looks at the numbers.
PHX holders are long term players, I’ve made that clear. They can sleep soundly at night without looking at the price all the time and they are assured value for the whole project will always only go up as the number of revenue streams increases over time. Their participation in future projects related to and/or affiliated to the Phoenix ecosystem is welcome as well. The plan is for each program to strengthen each other as we move forward. Unlike a lot of defi platforms, the Phoenix ecosystem creates revenue streams in ETH and/or USDT and it rewards holders (just like stockholders). We do not ever create more tokens and holders of Phoenix-related tokens will not ever be rewarded with more tokens. All value dictated by us (such as book value, and buyback prices) will always be backed by cash/ETH/USDT from revenues. Without the trust and backing of our community, we would not be able to continue with more and more ambitious projects going forward, so it is only right to reward them for supporting us.
One last question might be why launch right now? We’re on the cusp of the next bull market leg, and Supernova will perfectly capture the peak of that run upwards. The numbers add up and perfectly align so we’re joining the fun and hopefully you will too!
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