Intro to DEXTF Tokenomics and Governance
UPDATE: some portion of this document have been superseded by later documents. For clarity, they have been highlighted in yellow.
In this article, we will describe the functionality, utility and incentives that DEXTF token can provide to network participants, who in our case are: investors, portfolio managers and arbitrageurs. We are also going to examine what DEXTF token is for, how to earn it and the distribution ratio across the different stakeholders.
What is the DEXTF token?
The DEXTF token is an ERC20 token created on the Ethereum blockchain.
It is designed to be both a governance token (e.g. voting for upgrades and potential changes to the protocol) and a reward token to incentivise network participants for performance, liquidity, volume and other interesting metrics which can later on be established by the wider community!
Governance, 1-to-1 voting power
The DEXTF protocol can be upgraded and configured systematically by DEXTF token holders and their delegates. All potential changes to the protocol, including the adjustment of system parameters like management fee or interest rate, must pass through a proposal and voting process as specified in the governance smart contracts.
DEXTF is a token that corresponds 1–to-1 voting power in the DEXTF governance. Holders of DEXTF tokens in their Ethereum wallets may delegate their voting rights either to themselves, or to any other Ethereum addresses. The recipients of delegated voting rights, known as delegates, whether they be the DEXTF holders themselves or another address, may propose, vote on, and execute proposals to modify the protocol.
A portal with a nice UI is being built as we speak for that purpose to make voting even more fun.
With the launch of the protocol, the $DEXTF Token will play an essential role in the ecosystem.
We believe that the protocol can bring exciting upgrades through fair voting rights as the community would know what’s best for the market.
Top-down products are a thing of the past. As a result, since the community will have control on the success or failure of the protocol, it is only fair that the value accrued is also distributed to the network participants.
Here is a more detailed description of the DEXTF tokenomics.
- $DEXTF is an ERC-20 token
- Total supply: 100,000,000 DEXTF tokens (50% locked for at least 18 months)
- 1-to-1 voting rights (only through delegation, also to self)
- Minimum holding to submit proposals is 0.1% of total supply (100,000 DEXTF).
- 5% quorum (5,000,000 DEXTF) has to be reached for proposals to be included in the time-lock (minimum of 7 days need to pass for proposal implementation).
- 25% of total supply: Portfolio Managers and Investors (distributed monthly)
- 25% of total supply: Liquidity Mining Program (distributed daily, while rewards are defined weekly via Twitter)
- 30% of total supply: DEXTF team for platform development
- 15% of total supply: Allocation to be defined by the community
- 5% of total supply: Advisors
- Maximum of 70,000,000 $DEXTF will be distributed over 5 years.
Monthly Incentive Scheme — MIS (25% or 25,000,000 $DEXTF)
The incentive scheme rewards performance based on metrics common in the asset management industry such as amount invested, AUM, number of investors in a fund, top performing new funds. These rewards will be allocated every 4 weeks to network participants based on the below metrics and milestones:
a) Portfolio Managers (22% of MIS or 22,000,000 $DEXTF)
Monthly incentives (17% or 17,000,000 $DEXTF)
- Top 5 new funds with a minimum of 1 DAI invested (25,000 tokens each)*
- Top 5 new funds (total AUM) (85,000 tokens each)*
- Top 5 funds (total number of investors) (40,000 tokens each)*
- Top 5 funds (total AUM) (55,000 tokens each)*
- Top 3 performing new funds (Indicative pricing based on Cryptocompare) (50,000 tokens each)*
Milestones incentives (5% or 5,000,000 $DEXTF)
- First 100 funds that collect 5,000 DAI
- First 75 funds that collect 10,000 DAI (2,000 tokens each)
- First 50 funds that collect 50,000 DAI (10,000 tokens each)
- First 30 funds that collect 75,000 DAI (15,000 tokens each)
- First 20 funds that collect 100,000 DAI (20,000 tokens each)
- First 15 funds that collect 200,000 DAI (40,000 tokens each)
- First 10 funds that collect 500,000 DAI (280,000 tokens each)
b) Investors’ Monthly incentives (3% or 3,000,000 $DEXTF)
- Top 20 investors
- Top 10 Investors with a cumulative investment of 2,000 DAI (20,000 token each)* — phased out, merged with above after 7th Oct 2020 distribution.
c) Distribution method:
- Initially manually assigned every 4 weeks
- In the future the distribution might be automated directly using smart contracts
- Refer to the following link for the monthly rewards table: https://dextf.com/docs/MR
*Please note that the rewards per unit changes every month in a deflationary fashion. Rewards snapshots will be published on our website at the same link here.
Further details on reward schemes particularly regarding the liquidity mining aspect of the XTF fund tokens will be discussed in a later post.