Liquidity Generation Event

Summary

The Liquidity Generation Event (LGE) marks the genesis of the Welsh Street Exchange ecosystem. It distributes 1,000,000,000 STREET tokens (10% of total supply) to early contributors who send WELSH to the secure genesis contract during a 10-day event.

• Duration: 10 days
• Contribution asset: WELSH
• Distribution: 1,000,000,000 STREET (10% of supply)
• Goal: 10,000,000 WELSH raised
• Target ratio: 1 WELSH : 100 STREET
• Refunds: None — all contributions are final
• Liquidity: None created during the LGE
• Claim Period: STREET distributed via user claim after contribution window closes.

Overview

Participants contribute WELSH to the on-chain genesis contract. Each contribution updates a cumulative map recording total WELSH per participant.

At the end of 10 days:

• The event closes.
• On-chain totals are finalized.
• 1,000,000,000 STREET are distributed to contributors pro-rata to their share of total WELSH raised.

No Refunds

WELSH sent to the genesis contract permanently qualifies for the final STREET distribution.

Mechanics

1. Contribution Window

• The event runs for 10 consecutive days.
• Users may contribute multiple times; each new contribution adds to their cumulative total.
• Contributions are accepted only in WELSH via the genesis contract.

2. On-Chain Data (Source of Truth)

• The contract records:
• A list of participant principals.
• A map of cumulative WELSH totals per principal.
• These on-chain records are the sole source for the final distribution calculations.

3. Off-Chain Data (UX Only)

• An off-chain database mirrors on-chain events to power:
• Progress bars and contribution charts.
• Leaderboards and metadata (contribution amount, timestamp, etc.).
• Only users who contribute through the frontend have their metadata recorded.
• Direct contract interactions (via CLI, API, or Stacks Explorer) are still valid and fully credited in the final distribution, but their metadata will not appear in the frontend display.

Distribution Phase

After the 10-day window:

1. The genesis contract is closed.
2. Final contribution totals are exported from the blockchain.
3. STREET tokens are distributed via user claim through the genesis contract.
4. Distribution is based entirely on on-chain totals recorded by the genesis contract.

Metadata & Privacy

All allocations are based solely on on-chain totals, regardless of frontend tracking.

Tokenomics Summary

Oversubscription & Rewards Handling

The LGE can be oversubscribed — more than 10M WELSH may be contributed. Excess WELSH is handled as follows:

The contract administrator determines the timing of reward donations to maintain fair, gradual distribution to LPs during early liquidity phases.

Undersubscription Handling

If total WELSH raised is less than 10M:

• The 1B STREET allocation is still distributed pro-rata, so participants receive more STREET per WELSH.
• The initial liquidity pool will still be created using 2B STREET + 20M WELSH, with the shortfall covered by private WELSH donations (no insider advantage, no special allocations).

Liquidity Pool Creation

After the LGE ends:

1. The deployer seeds the liquidity pool with 2B STREET + 20M WELSH.
2. 10M WELSH originates from the LGE seed round; 10M WELSH comes from private donations.
3. The deployer may fine-tune the ratio slightly to reflect actual WELSH raised or market price.

All liquidity is protocol-owned or donated, ensuring fair market depth at launch.

Core Principles

1. Fair Launch: Every contributor participates under the same conditions. There are no pre-sales or private allocations.

2. Transparency: All contributions are recorded on-chain and viewable by anyone.

3. Fixed STREET Supply: Exactly 1,000,000,000 STREET are distributed through the LGE (10% of total supply)—no more, no less.

4. Flexible Liquidity Ratio: The 1:100 ratio between WELSH and STREET is a target goal. The deployer may adjust this ratio at the time of liquidity deployment to reflect actual WELSH raised or market conditions.

5. Community Participation: Major allocation choices (e.g., surplus or rewards handling) will be shared and discussed publicly through official Welsh Street social channels such as X.

Market Adjustment & Liquidity Allocation Policy

Because the LGE runs for two weeks, the market price of WELSH may change significantly during the event. To handle both over-subscription and under-subscription fairly, the following framework applies:

1. Fixed STREET Allocation The total of 1,000,000,000 STREET distributed to participants does not change, regardless of market movements or total WELSH raised.

2. Adjustable Liquidity Ratio The 1 : 100 ratio between STREET and WELSH is not hard-coded. After the LGE ends, the deployer will apply the initial liquidity manually and may adjust this ratio to reflect actual market conditions and the total WELSH raised.

Oversubscription Scenario (More than 10M WELSH Raised)

The LGE uses a structured approach to handle oversubscription:

10M - 20M WELSH Range:

• Excess WELSH (above 10M) is deducted from the donation balance pool
• This reduces the donation pool 1:1, maintaining fairness

Above 20M WELSH:

• Additional excess WELSH is donated to the Rewards Pool
• Distributed to LP holders over 1-3 month bootstrap period
• Contract administrator determines timing for fair, gradual distribution

The allocation decision will be announced publicly on official channels (e.g., X), and community sentiment may be measured through polls.

Undersubscription Scenario (Less than 10M WELSH Raised)

If less WELSH is raised than the 10M target:

• All participants still receive their full share of the 1,000,000,000 STREET allocation, which means each WELSH contributed earns more STREET.
• The initial liquidity pool will still be created using 2B STREET + 20M WELSH
• The shortfall is covered by private WELSH donations with no insider advantage or special allocations
• The deployer may fine-tune the ratio slightly to reflect actual market conditions

Undersubscription effectively rewards early supporters with a larger proportional STREET claim.

Fairness & Transparency Framework

Deployer Authority & Community Input

• The deployer manages liquidity creation shortly after LGE close.
• Major decisions (e.g., how to use surplus WELSH) will be discussed publicly and may be put to community polls on X.
• After this window, ongoing reward pacing or buyback decisions will continue to be posted transparently through official social channels.

TL;DR