Today, we are releasing the biggest upgrade to the $STFX Tokenomics upgrade to date. Starting from April 11th 2024, the following changes will come into effect:
Trading Fee Remodelling
Previously, STFX took a protocol fee on profitable vaults only, up to 5% dependent on a manager’s staking tier. As of this month, we have swapped to a flat 0.1% on ALL vaults from the get go, resulting in a more consistent, and often cheaper fee structure for users of the dApp.
More importantly is how we plan to utilize these protocol fees.
$STFX Buyback, Burn & Distribute
One of the most exciting changes we are making that further cements the connection between token and dApp will be taking the protocol fees, and introducing a Buyback & Burn, as well as a Buyback & Distribute structure to the protocol.
ALL trading volume on the dApp will result in protocol fees, all of which will be used to buy the $STFX token on the open market. These tokens will be utilized in two ways:
Buyback & Burn: A simple, proven concept. Volume results in buy pressure of the native $STFX Token on the open market, of which we will burn a large amount, permanently removing supply on a weekly basis, turning the token into a deflationary asset, scaling perfectly with the increased use of the dApp itself. The more users and activity, the more $STFX token buy volume, the more $STFX tokens burned. A simple yet effective proven model in crypto.
Buyback & Distribute: We have introduced an algorithm to also distribute some of these tokens back to users of the dApp. The more volume a user brings to the STFX dApp, the more they will benefit from the Buyback & Distribute system.
Increased $STFX Staker Rewards for All Trades
The Buyback & Distribute will enable Stakers of the $STFX token to receive further rewards in the form of $STFX for every trade they are a part of, up to 0.05% of their volume (dependent on their Staking Tier). This will be another addition that will further incentivize users to hold and stake the native token, increasing staked STFX, and adding more benefits to being a part of the STFX ecosystem. You can start staking your $STFX at stfx.io/stake and begin earning rewards for every trade you are in.
We believe that all of these changes together, paired with our upcoming $2,000,000 Battle Royale competition, mobile app, incentives program, referral links and more, should see a significant flywheel effect for both the dApp total users, and the total token holders. The Buyback & Burn system, which causes the token to become deflationary, will make the supply more and more scarce over time, adding additional scaling value to the $STFX token.
Feedback is always appreciated at STFX. Feel free to join our community Discord for any inquiries you may have, or to share any feedback for improvements or changes you would like to see, and make sure to stake your STFX tokens to receive all of the new benefits above.
