Project Research Dossier: CarrotFunding (Pre-TGE Evaluation & Tokenomics Model)

1. Project Goal CarrotFunding builds a Web3 prop trading & capital allocation platform. Traders pass challenges with strict equity/drawdown limits to trade funded accounts and split payouts. Why it matters: Web2 prop firms often alter rules arbitrarily or delay payouts; moving challenge parameters and settlement onto verifiable rails gives traders real trading freedom. Primary Source: https://carrotfunding.io

2. Tokenomics (FDV vs. Circulating, Vesting, Allocations) Status: Pre-TGE / pre-public raise (no active ICO or live token yet). Model: A healthy future launch needs at least 15–20% initial circulating supply relative to FDV to avoid the low-float/high-FDV trap. Crucially, trader payouts must be funded by real protocol cash flow (challenge fees & trading splits in stablecoins) rather than inflationary token emissions.

3. Unlock & Dilution Risk (Cliffs vs. Linear)

Community Incentives: If onboarding quest rewards unlock 100% at TGE without linear vesting, immediate sell pressure will hit early liquidity.

4. Team Verification Signals

Verifiable: Live onboarding modules, challenge rules (drawdown/profit targets), and community quests are testable firsthand today.

Marketing: Claims around payout stability under extreme volatility need public smart contract audits, on-chain treasury proofs, and months of payout history before being trusted.

5. Key Risks

Incentive/Treasury: Paying winning traders solely from new challenge fees risks vault depletion if many traders profit simultaneously during trending markets.

Technical/Regulatory: Real-time drawdown liquidation requires zero latency, and prop trading faces increasing global regulatory scrutiny.

6. Disclosure I hold no token position, equity, or financial allocation. Written for educational research only.

Open for critique: How should Web3 prop firms balance token incentives with stablecoin payout reserves?