DEXTF Token Distribution Schedule

TLDR;

• To date 27 XTF funds launched, 5 new pools on Uniswap
• Token distribution will run for 5 years split between 3 programs: Monthly Incentive Program (for Portfolio Managers and Investors), Milestone-based Incentive Program (for Portfolio Managers) and Liquidity Mining Incentive Program (for any user), respectively allocating 20M, 5M and 25M tokens
• 7th Oct 2020 key date to note as first distribution of monthly incentive will double the circulating supply in a day (increase by 1.75M tokens)
• New rules introduced for liquidity mining to prevent rewards going towards unproductive funds
• Up to 2x rewards if $DEXTF is used either as a pair or underlying asset

Next week 7th Oct 2020, marks the first month since our MainNet launch.

We’re extremely humbled to see such an organic growth in the community and the numerous enthusiastic feedbacks gathered in the past 3 weeks.

As of this writing, 27 XTF funds have been launched (i.e. 1 new fund per day), and 5 new pools were launched on Uniswap using the same XTF funds created on our Dapp.

We’d like to stress that our token distribution prioritises platform fair usage, which means that the operations listed below would make you eligible to receive DEXTF rewards.

• Launching a new XTF fund token by selecting the underlying assets and relative weights
• Minting of XTF fund tokens either via in kind contribution of the underlyings or through KyberSwap (except for tokens that are currently not supported)
• Providing liquidity to the whitelisted Uniswap pools with XTF pairings (we will soon launch a whitelisting application available on our website)

Rewards for the first two activities fall under the Monthly Incentive Program (refer to this article for more details).

This program differs from the liquidity mining incentive program which rewards LPs for helping out in building the liquidity for our crypto-native ETFs, for which we’d like to introduce 2 strict rules which would guarantee fair play when it comes to rewards distribution.

The key difference is that the Monthly Incentive Program’s payout (and also the Milestone-based Incentive Program) occurs on a monthly basis, whereas the liquidity mining rewards are being distributed daily and its daily amount changes on a weekly basis (communicated via Twitter).

As part of our launch, the first few weeks had higher than average rewards in order to bootstrap the platform, however, as we’ve recently communicated through our Telegram Group, we stand firm in our commitment to stretch our token distribution of 50% of the total supply (50,000,000 tokens) over 5 years following the below schedule:

1.A total of 20,000,000 tokens reserved for Monthly Incentive Scheme (for Portfolio Managers and Investors)

Year 1 (Sep-2021) = 10,000,000 tokens

Year 2 (Sep-2022) = 5,000,000 tokens

Year 3 (Sep-2023)= 2,500,000 tokens

Year 4 (Sep-2024)= 1,700,000 tokens

Year 5 (Sep-2025) = 800,000 tokens

2.A total of 5,000,000 tokens reserved under Milestone-based Incentive Scheme (for Portfolio Managers)

3.The balance 25,000,000 tokens is reserved under the Liquidity Mining Incentive Program, distributed daily to LPs

Important Notice

As of today (30-Sep-2020), the current circulating supply of DEXTF tokens is 1,000,000, which entirely comes from the daily distributions to LPs.

In a week’s time, on 7th October 2020, the first Monthly Incentive Scheme distribution for DEXTF Dapp users will take place, in which occasion 1,750,000 $DEXTF tokens will be airdropped into the wallets of portfolio managers and investors that have been using the Dapp in the past month.

We recommend to exert extreme caution and to be aware of this upcoming event (valid for subsequent monthly distributions as well), which will double the circulating supply in a day.

Having said that, we’re excited to introduce to the community the multiplier effect in the rewards under the Liquidity Mining Incentive Program.

To put it briefly, users will enjoy a multiplier greater than 1 for rewards when $DEXTF is used either as an underlying or as a pair.

• XTF funds paired with $DEXTF are eligible for 1.5x the rewards
• XTF funds with at least 10% of $DEXTF paired with any token (*) are eligible for 1.5x the rewards
• XTF funds with $DEXTF paired with $DEXTF (*) are eligible for 2x the rewards

As mentioned earlier, we’d like to provide a fair gameplay for each market participant to be appropriately rewarded for their activities on the platform.

However, we’ve observed in the past few days that rewards were reaped for some funds that indeed had very little value to offer, since some were really overweight on ETH, and were eventually paired with ETH in Uniswap pools, bearing minimum risk and maximum “benefit” for the LPs.

As such, strict rules will apply starting 1st October 2020, where:

• XTF funds with more than or equal to 50% of token X will not be eligible for any rewards (e.g. : 90% WETH + 10% DAI). This implies that funds with only 2 underlying assets, will not enjoy rewards for the purpose of the liquidity mining program.
• XTF funds paired with underlying tokens weighing more than 20% will also not be eligible for any rewards (e.g.: 34% WETH + 26% DAI + 21% USDC + 19% KNC cannot be paired with WETH, DAI, USDC).

Lastly but not least, these 3 weeks were particularly interesting as arbitrage opportunities from XTF funds could be exploited to make juicy profits. We are thinking of introducing a new incentive program specifically for arbitrageurs, who together with portfolio managers and investors are the pillar of an efficient market. If you think it’s exciting, we feel it too, brr!

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