DEV Tokens’ Value
A common question we receive is “What’s the value of the DEV token?”. This article will discuss the current value of the DEV token and the future value capture it will receive from Dev Protocol’s upcoming products.
What is Dev Protocol?
Dev Protocol is a Social token platform that leverages Decentralized Finance to provide tokenization and inflationary funding solutions for Creators to help them monetize their work. Currently, we’re focused on Open Source Software developers building projects on Github. But in the near future we will support Creators across all sectors such as Youtube, Spotify, and Academic research.
What is Inflationary Funding?
Support Creators by staking and earn a yield
Dev Protocol introduces a new way to fund Creators and Public Goods with sustainable Inflationary funding. Inflationary funding allows Dev Protocol to realign the incentive structure to support public goods which are mostly taking for-granted due to being free to consume. How many times have you donated to an Open Source project, your favorite Youtuber, or an upcoming Spotify artist?
The DEV token is a sustainable inflationary token that rewards Patrons for staking and yield farming for Creators they support based on the protocol’s APY. For the first time ever both the Patron and the Creator both make money for supporting each other! This is revolutionary because Dev Protocol can turn a larger demographic into Patrons through realigned incentives.
Dev Protocol’s APY for Patrons and Creators comes from the DEV token inflation. Each Creator onboarded increases the inflation rate while each DEV token staked decreases the inflation rate. This counter-balance mechanism provides incentives to support Creators while being sustainable. The protocol’s current inflation is similar to Bitcoin’s and Ethereum’s at 2.5% annual supply growth.
To get started go to our Dapp Stakes.Social and earn over 40% APY by staking your DEV tokens for a Creator you support.
Dev Protocol turns everyone into Patrons similar to how Instagram turned everyone into Photographers.
DEV token Value Capture
- Stake DEV to support Creators and earn a yield
- Governance Power
- Receive Social Tokens and Protocol Fees
The Dev Protocol Treasury takes a 5% fee of all Social tokens minted on the protocol. These tokens will be controlled by the upcoming DAO. Since Creator rewards are sent to the
#1- Stake DEV 🔒
As stated above, if you become a Patron, by staking DEV for a Creator you support, you’ll receive a yield on the tokens you stake. Currently, there is an over a 40% APY for being a Patron of a Creator. Patrons are rewarded for becoming curators of which Creators should be funded. While inactive DEV holders are penalized due to the inflation rate.
#2- Governance Power (Coming Soon) 🗳
Dev Protocol is launching a DAO in the coming months which will transfer Governance power to those staking DEV tokens. Voters will also be able to vote on Factory Governance and Pool Governance. Factory Governance will contain proposals such as liquidity programs, new sectors, new markets, and core protocol improvements. Pool Governance will allow DEV token stakers to vote in live time, with a 24 hour delay upon approval, on parameters such as:
- Inflation per asset
- Inflation cap
- Social token fee
- Authentication fee
#3- Receive Social Tokens and Protocol Fees 💸
The Dev Protocol Treasury receives a 5% fee of all Social tokens minted on the protocol. This allows Dev Protocol to capture a fee from Creator rewards (5%) and the future value of the Social token if it gains economic value through utility or Governance power.
For example, an Open Source Project, or any other Creator, may want to build their own economy and stop relying on Inflationary funding. They can apply utility purposes or Governance purposes to owning their Social token. This would in effect create economic value for the 5% Social token fee.
Recently, a Dev Improvement Proposal was published on Github (DIP #52) that discussed splitting the Social token fee with the largest Patrons for that project. This would unlock huge amount of value for Patrons while also incentivizing them to stake for Creators that are innovating and planning to leverage their Social tokens.
Dev Protocol is constantly innovating and building new products. Governance will have the ability to implement fees on Dev Protocol’s future products and feature for the Treasury. Governance will then control how these fees are allocated.
To summarize, the DEV token allows holders to earn yield by becoming a Patron, control the protocol via the DAO, and receive Social tokens of the Creators on the platform. Dev Protocol is delivering economic freedom and financial tools by leveraging Social tokens and Decentralized Finance to unlock their creative freedom.
