Tokenomics is the study of the economics of cryptocurrencies and crypto tokens. Let’s look at the $ALOT token that will drive Dexalot’s products and services for years to come. Built on Avalanche, Dexalot’s mission is to bring the traditional exchange experience (namely the Central Limit Order Book capability) decentralized for users worldwide.
The Dexalot token has a variety of planned utilities:
- Gas, as the main currency for gas payments when Dexalot moves to its own subnet;
- Governance of the future of Dexalot;
- Staking, as stake-able and delegate-able by validators and delegators to secure the subnet (similarly to how the X, P and C chains of Avalanche is secured) and so as to drive good behavior on the platform;
- Incentives to promote the platform and incentivize users to use Dexalot.
The emission of the ALOT will commence immediately after the token generation event (TGE) and vesting will be fully complete after 120 months. ALOT has an initial $60 million valuation with a Private Sale price for ALOT at $0.50 and the Avalaunch IDO price at $0.60.
The community can receive tokens via the Avalaunch IDO token generation event, Dropalot and other operational rewards and possibly purchasing it in the secondary market through Dexalot Discovery. Dropalot tokens will be airdropped to users for events already held, such as the Bug Hunt, Meme Contest, early adopter exchange use, and the Testnet Battles. New events and contests will be implemented in the future.
The operational awards (used for exchange health and longevity) form the largest part of the distribution, and will be the main supply of the necessary incentives for validators, delegators and exchange users.
After the initial launch, Dexalot will need resourcing for new development, user experience enhancements, day to day operations and partnerships. The vision is to pursue a similar model to previously successful DeFi projects where the revenue derived from the Dexalot platform drives the new development. The allocation of this revenue is dictated by the governance model, i.e. the community and stakeholders of the platform.
The list of groups that may receive funding include (but are not limited to):
1. Core development team working on projects prioritized by the governance proposals and funding.
2. Community members with the necessary skill set working on their own proposals and receiving funding through governance proposals as research grants.
3. Contractors brought in to work on some proposed projects to accelerate development or fill gaps in the core development team and community’s expertise.
The Foundation allocation contains the treasury of Dexalot and is used for day to day operations and regular expenses as well as research and development.
Lastly, in order to increase the community’s proportion of circulating tokens, the team limited themselves to 12% of all allocations with the longest vesting schedule over four years.
Writer: Brad McFall
Editor: Dan Marcoulis
Graphics: Can Toygar
Dexalot is a revolutionary decentralized exchange aiming at bringing the traditional centralized exchange look and feel to a decentralized on-chain application. Its mission is to bring a truly inclusive and transparent environment where Dexalot users can trade crypto securely and efficiently, with no slippage or custody risk. It is built on Avalanche, the fastest smart contracts platform in the blockchain industry.