Tokenomics
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About the Client
The company is a decentralized exchange (DEX) on Ethereum that strives to deliver a seamless and user-friendly trading experience for the cryptocurrency community. It prioritizes security, transparency, and decentralization. Through its innovative approach to cryptocurrency trading, it ensures a trustworthy environment and fast transactions, enabling users to maintain full control over their assets while benefiting from the convenience and functionality of a modern exchange.
Challenges
Make a native token. Initially, the Client distributed tokens of the blockchain as rewards instead of having its token.
Make reward distribution automatic. Upon the introduction of the Client's token, there were no clear rules for determining returns, and the reward distribution was manually managed.
Make decentralized reward distributions. The rewards were distributed through a multisig managed by the team, leading to centralized decision-making.
Goals
Creating a viable token model for the DEX and transitioning decision-making to a DAO.
Introducing a well-designed tokenomics system to ensure the platform's long-term sustainability and success.
Make recommendations about future solutions, including the introduction of DAO.
Our solution and results
Developed a tokenomics model
For the DEX featuring three stages of development, each characterised by varying levels of liquidity and rewards.
Introduced utility functions for the DEX token
Such as farming boost, voting rights, whitelist token purchases, and farming pool reservations.
Implemented DAO governance and voting mechanisms
To enhance decentralization and user involvement in decision-making.
Proposed future solutions
Including the introduction of DAO proposals for users to create and vote on initiatives, as well as the implementation of profit-sharing from a portion of the LP fees with DEX token holders.
Implemented bi-weekly voting sessions
For token holders to participate in determining the distribution of rewards in eligible trading pairs.
Project highlights
Fostering user trust
More transparent and community-driven reward distribution fostering user engagement and trust in the platform.
A sustainable and attractive token model
That adapts to the platform's growth and development stages.
Optimized holder benefits
Enhanced token utility, resulting in increased demand and token value.
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