Beyond Numbers: The Tokenomics of Deepr Finance

The success of a project often hinges on the intricacies of its tokenomics — the economic model that underpins its native token. In this article, we’ll delve into the details of Deepr Finance’s tokenomics, exploring how the total supply of 1,000,000,000 tokens (named DEEPR) is strategically allocated to various facets of the project. With a commitment to long-term success and the generation of value for our users, partners, team, and investors, our tokenomics are designed to be both fair and robust.

DEEPR tokenomics at a glance

Total supply: 1,000,000,000 DEEPR

Breaking down this substantial supply, Deepr Finance has designed a model that seeks to balance community engagement, team incentives, liquidity, and strategic partnerships.

Airdrop (0.1%): 1,000,000 DEEPR

As a testament to the community-centric approach, Deepr Finance allocates a small but significant portion for an airdrop — a distribution of 1,000,000 DEEPR once the platform launches to those who actively participated in the Treasures of Shimmer testnet campaign for ShimmerEVM.

Community liquidity incentives (62.4%): 624,000,000 DEEPR

The majority of DEEPR tokens are dedicated to community liquidity incentives. These rewards are designed for users who lend assets and engage in borrowing activities within the protocol. Additionally, DEEPR tokens are paid out to decentralized exchanges to stimulate liquidity on DEEPR LP pairs, with emissions scheduled over a 3-year period.

Team incentives (20%): 200,000,000 DEEPR

Recognizing the importance of a motivated and committed team, 20% of the total supply is earmarked for current and future team incentives. These incentives are vested over a 3-year period, aligning the team’s interests with the long-term success of the project.

Treasury (5%): 50,000,000 DEEPR

A 5% allocation is set aside for the project’s treasury. Notably, this treasury will be managed by the community through future DEEPR token governance. The allocation is intended to support future growth strategies and is subject to a lock-in mechanism via multisig with a time-unlock requirement.

Partnerships (7.5%): 75,000,000 DEEPR

Acknowledging the significance of strategic partnerships, Deepr Finance allocates 7.5% of the total supply to fund partnerships crucial for its success, with partnership agreements featuring vesting periods. Similar to the treasury, this allocation is secured through a lock-in mechanism via multisig with a time-unlock requirement.

Initial liquidity offering (5%): 50,000,000 DEEPR

Prior to the official launch, Deepr Finance provided an opportunity for the community to contribute to the project’s liquidity. This 5% allocation, totaling 50,000,000 DEEPR, had been reserved for the initial liquidity offering via our partner, ShimmerSea DEX. This fair launch took place on October 28, 2023 and was a success, selling out in 2 minutes.

The emission of DEEPR tokens

Community liquidity incentives DEEPR tokens will be distributed across the platform to users on a per-block basis for a duration of 156 weeks (3 years) as a reward for their engagement with the platform. The number of tokens allocated per block is contingent upon the user’s participation in a specific market (supply and/or borrow) and their percentage of involvement in that market.

The distribution model is structured to decrease the number of tokens allocated each week, following a linear function with a negative slope. The team will also have the ability to control emissions should the incentives be too high which could impact the price of DEEPR tokens. By the time week 157 arrives, there will be no remaining tokens available for distribution to users.

We emphasize transparency and community involvement, evident in the carefully structured tokenomics of the protocol.

Please note that Deepr Finance has launched its initial LP before starting other token emissions once the platform is live.

DEEPR: A wide array of utility

The DEEPR token serves a multifaceted role, functioning not only as a governance instrument but also as a means for token holders to earn passive income within the Deepr Finance protocol.

Deepr Finance’s governance initially rests with the core team, involving community and advisor consultations for strategic decisions. Gradually, governance will transition to the community through the DEEPR token, allowing holders to propose ideas, vote, and delegate votes in a decentralized manner.

Moreover, the DEEPR token offers holders the opportunity for passive income by staking tokens to receive a share of protocol-generated fees, with increasing utility and value accrual anticipated as additional features are integrated into the platform or offered by our partners. In this context, make sure to check the SMR/DEEPR pool on ShimmerSea, and join Accumulator for auto-compounding your LP rewards.

Outlook

The recent fair launch of DEEPR (50,000,000 DEEPR, 5% of the total supply) saw a complete sell-out on ShimmerSea DEX within two minutes. This serves as evidence of the robust and committed community that Deepr Finance can build on. Our next major milestone is the launch of the protocol after the bridge has been deployed. In the meantime, we welcome you to explore our lending and borrowing platform on Deepr Degen.