Get Ready To Feel The Burn 🔥: Introducing the $D Token
Learn why intertwining unique tokenomics with a liquidity-concentrating protocol will cause us to rethink how blockchains will function moving forward
This industry is stuck in a cycle.
How can we break it?
How do you change the narrative? How do you rip apart the fabric of what is common, and stitch together something new? How do you make this new “thing”, something that is actually valued and desirable?
DeFund has gone through years of tweaks, iterations, pivots, and improvements, and after deciding to take the leap towards a sovereign rollup model instead of a traditional L1, we have had to innovate on what we believe a token should be.
Introducing DeFund Finance’s native token D, a byproduct of intense research from the tokenomics of hundreds of blockchains (both successful and unsuccessful), global economics strategy, and modern monetary theory.
D Token Purpose
For those who have been following us for years now (thank you for sticking around❤️), you may remember our old ticker DETF that represented the protocol at the time. With the change in tech and focus, we’ve decided to completely discard the old moniker in favor of something that is more like the current protocol, straight to the point and recognizable by everyone.
The D token is a natively deflationary token used throughout the DeFund Exchange, intertwining with the option vaults, options, and hedged liquidity pools that are a centerpiece of the DeFund Ecosystem, as well as the greater modular ecosystem. The D token plays a large role in uniting liquidity cross-VM, in turn enabling a more efficient and interconnected blockchain industry.
The D token will be paired with many of the most desirable tokens in the blockchain industry on the DeFund Exchange, and users who provide liquidity for these pairs will be properly rewarded for doing so. Also, the D token will be utilized in transaction fees, and owners of the D token will be able to participate in the future of the DeFund blockchain through governance.
D Tokenomics
All $D tokens will be minted at genesis and allocated according to the following distribution:
Airdrop: 17%
Ecosystem & Growth Initiatives: 25%
Early Contributors: 20%
Hedged LP Rewards: 19%
Call/Put Pool Rewards: 19%
There will only ever be 250,000,000 D tokens created, and many millions will be burned.
D-flationary Triggers
For nearly every transaction occurring on the DeFund blockchain, D tokens are burned. A flat fee of $0.01 is charged per transaction, where 100% of D is burned. This allows for gas prices to stay low/consistent while still burning the supply at a rate relative to the usage of the blockchain as well as the market cap of the token.
The D token is comparable to actual gas/oil; when it’s used, it’s gone forever. In essence, the D token is the truest example of ultrasound money.
“Staking” Alternative
With the move from a Sovereign L1 to a Sovereign Rollup, validators have been replaced by a sequencer. As a result, staking rewards in its traditional sense no longer exist. However, proper liquidity is essential to ensuring that all of the moving parts of DeFund function correctly. To enable this, there are multiple ways to earn rewards, including providing liquidity to hedged pools, pools for call and put options, and an options fee vault that distributes fee revenue based on a set % per premium proportional to the amount staked in this vault.
More details on lockup periods and rewards will be released in the coming weeks/months.
Airdrop Recipients
The upcoming airdrop will be distributed and claimed in a manner that best displays the functions and capabilities of both the D token and the greater DeFund Ecosystem.
There will be much more announced in the coming weeks/months concerning what users/token holders/specific actions will receive an airdrop, but we can confirm that TIA holders will be eligible, and are also planning to airdrop directly to the Celestia Community Pool. Also, those who were eligible for an airdrop from previous DeFund testnets will be earning their own Loyalty Drop.
Conclusion
This latest iteration of the DeFund network will be the one that goes to mainnet. An upcoming testnet will showcase its new capabilities and prepare us for a successful launch. We have gone through years of research and development, and with the combination of the protocol and token, we have reached a point where we believe DeFund will generate real value for users and token holders alike.
