What is ANC

What is ANC

ANC is the primary token of the Anchor Protocol. It’s used to control the protocol. ANC stakers create polls and push ideas to improve the protocol. Only stakers can vote in these polls, that way only the active users and ANC stakers can offer advancements for the protocol, guaranteeing their decisions (votes) with their own assets. For this risk, stakers receive rewards.

The token is also used as a reward (encouragement) for loaners and providers for the ANC-UST pool.

You can not only receive ANC in the form of a reward, but you can also get it via trading, in Terra Station for example:

  • Open Terra Station
I don’t have the app

Download Terra Station from the links below:

  • Open the wallet and tap Get Started
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  • Now you need to sign in. If you have a wallet, tap Recover wallet, enter your seed phrase and go to step 4. If you don’t have a wallet, tap New wallet, make a name and password for it. Then tap Next
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  • A seed phrase will appear. Write it down somewhere safe and make sure you don’t lose it. It’s the only way to access your wallet. Then go to the next step and confirm your seed phrase by entering the words and tap Confirm and finish
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  • Now go to the Swap tab and select which coin you want to trade for ANC, then specify the amount and tap Next
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  • You can see the approximate amount of ANC you’ll receive, as well as the way of receiving the coin. In this case, Luna will first trade into UST and said UST will be traded for ANC. Don’t worry, it’s fast and secure, there are no additional actions required on your end
  • Then, you’ll see the transaction details. After tapping Next you’ll need to enter the password you created prior and finish the trading process by tapping Swap.
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  • Slippage Tolerance is the possible slippage of the price during the trade. The percentage shows the maximum possible deviation from the expected amount of ANC.

Protocol fees

bAssets rewards

Part of the rewards for delegated assets (for which the user was given bAssets) are used to buy out ANC tokens, the rest are sent to the reserve that provides a stable profitability for deposits.

Collateral Liquidation Fees

When a deposit is liquidated, 1% of it is sent to the reserve, providing stable deposit profitability. The rest is used to buy out ANC tokens.

Governance fees

When creating a poll, a certain amount of ANC is blocked, if by the end the quorum wasn’t reached, these tokens are distributed across ANC stakers.

ANC token supply

It is planned that 1 000 000 000 ANC tokens will be distributed over a time period of a minimum of 4 years. No more tokens will be minted after that.

Distribution chart (in millions)

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Genesis Token Distribution

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On creation of the Anchor protocol only 150 million ANC was minted. The initial ANC distribution:

  • LUNA staking airdrop: 50M (33.3%) of tokens were distributed amongst LUNA stakers in correlation with their stakes. The blockchain snapshot was made on the 2 179 600th block.
  • Community fund: 100M (66.7%) of the tokens were reserved for the Anchor community fund

Final Token Distribution

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Additional ANC tokens will be minted over the course of a minimum of 4 years, expanding the offer until it reaches 1B. The final structure of the distribution will be as follows:

  • Investors: 200M (20%) of the tokens will be given to Anchor investors with a 6-month blocking period. After that the yearly right transfer graph is applied
  • Team: 100M (10%) of the tokens will be given to the creators of Anchor with a 4-year period of right transfer. The tokens will be released at the end of each year
  • LUNA staking airdrop: 50M (5%) were given to LUNA stakers at launch
  • LUNA staking rewards: 100M (10%) of the tokens will be linearly distributed amongst LUNA stakers over the course of 2 years. Tokens will be distributed every 100 000 blocks (approximately every week), starting with block 2 179 600. Snapshots are made every 100 000 blocks to determine the eligibility of the distribution.
  • Borrower incentives: 400M (40%) of the tokens is released linearly to be used to encourage loaners for 4 years
  • ANC LP staking rewards: 50M (5%) will be linearly distributed across ANC-UST liquidity providers for 1 year
  • Community fund: 100M (10%) of the tokens were reserved for the Anchor community fund

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