Introducing EONS Token
A comprehensive guide to the EONS’ token economy & utility, ver 1.0
Supply and Distribution
Note: Download the official EONS tokenomics article in PDF version here.
EONS will maintain its existing fairly distributed supply, having launched as a Proof-of-Work network, formerly named ALQO, in Dec 2017, in a 1:1 non-expiring swap to the Ethereum mainnet token. Feel free to review the complete current chain analytics here: ALQO Explorer.
Because EONS will exist on several networks, we designed its emissions to include a stable output of 3.5% APY of the total EONS on each network. We distribute emissions by calculating daily supply, adding additional tokens to the rewards pools for distribution across EONS’ network products. Daily emissions remain valid for all networks, except Substrate (BSC, Cosmos, Solana, etc.), which will host our nodes and have a different emissions schedule.
Ultimately, each chain has independent emissions to avoid dilution of any specific network. The 3.5% remains constant, in concert with the burn protocol to maintain low to neutral inflation.
Daily supply calculation Total Network Supply * 0.035 / 365.25.
Example 1: ETH Network, 50M EONS = 4791 EONS Daily Emissions on the ETH network
Example 2: BSC Network, 20M EONS = 1916 EONS Daily Emissions on the BSC network
All emissions pay to the rewards pool for each network. The more EONS on each network, the higher the number of EONS added daily.
Burn Protocol
- Burn 10% of all fees.
All fees generated in the ecosystem will be subject to a 10% burn. Assets swapped into EONS via DeFi exchanges and sent to the burn address. For example, 0.01 ETH fee paid, the contract trades 0.001 ETH to EONS via Uniswap. Contract sends EONS to burn address if < 3.5% Deflation.
2. Burn an additional 10% of all fees paid in EONS.
If those ecosystem fees pay in the EONS token, 20% get burned instead, doubling the amount. Once deflation hits a set limit of -3.5%, burning will halt, and the EONS will get added to the Rewards Pool. For example, 10 EONS fee paid, contract sends 2 EONS to burn address if < 3.5% Deflation.
Economic Goals
- Target a predictable supply with a fixed network emission rate of 3.5% APR.
- Enable a supply burn protocol to maintain delta-neutral emissions, ultimately creating a deflationary effect on supply via ecosystem utilization, price, and participation.
For example, we propose a deflationary limit of 3.5% via a burn protocol that increases rewards instead of deflating EONS’ total supply. In our model, there is a total emission of 5,000 EONS tokens, of which the maximum burn amount would be double the emissions amount, for a total of 10,000 EONS. Tokens burned over this amount get sent to the Rewards Pool.
Multi-Network Ecosystem
EONS features a multi-network ecosystem operating on several networks. EONS’ interchain economy allows EONS users to interact with prominent DeFi products in a network-agnostic manner. As EONS expands to include more networks, each network maintains its rewards and emissions equal to the other token networks based on the number of EONS on this network. With no initial supply provided, the current amount will need exchanging to the different networks allowing for interaction with each network’s products (i.e., provide for the transfer of ETH EONS to BSC EONS to stake in the BSC pools).
EONS provides bridges to allow its users to move assets across networks quickly, reducing the cost of network fees. These bridges offer tremendous value to the EONS ecosystem, remove cross-chain barriers, and enable transferring assets from one network to another.
We plan to add new network access at regular intervals and in phases. We have quantified our list of networks by several metrics, such as volume and product availability. In version 2.0 (v2), EONS token governance initiatives will allow EONS holders to decide which networks we expand to and specific products offered.
Substrate
As the EONS ecosystem progresses through its planned phases, in version 2.0, EONS introduces our custom Substrate framework within EONS. The Substrate network will feature its own emissions schedule, which includes nodes and wallet staking. When a network user provides utility by hosting a node, they receive rewards. Network partners and bridge hosting opportunities on the Substrate network offers additional ways to support the EONS ecosystem while earning rewards.
Having our distribution on Substrate will allow us to create our pools and products instead of merely importing access to others. With the ability to process our transactions and contracts, we can offer lower fees to users who use our products and stay within our ecosystem. Substrate EONS will also be a hub for the different network bridges we build. For example, a user moves from ETH to Solana, they could use our smart contract network to move EONS quickly, trustlessly, and inexpensively with as few interactions as possible.
In the future, as the EONS network and ecosystem grow, we will explore running our Substrate parachain with links to DOT and other available networks. As our treasury and development mature, we will develop more of EONS’ ecosystem on our infrastructure, allowing increased user access, with more control over fees and rewards.
Contracts
EONS’ ecosystem includes professional and vetted developers. We rigorously test all EONS contracts before deploying to mainnet. Anyone can review our contracts on our official GitHub, here: eons.finance · GitHub.
Security
All mainnet contracts within the EONS ecosystem are developed with best coding practices, undergo thorough security reviews, and ultimately the controlling wallet keys get burned. Any updates to an EONS contract occur as a new product version launch, including migration of the old version to the new contract product.
Audits
Officially deployed mainnet contracts within the EONS ecosystem undergo a professional audit by a leading auditor service provider. When available, you can view our most recent and applicable audits here.
Rewards
The EONS ecosystem features a rewards pool where users can stake their current EONS holdings to compound their returns with rewards supplied by emissions, buybacks, and more. All EONS rewards pool tokens payout daily to rewards pool participants.
Rewards Pool Distribution
The APY and Liquidity pools are paid out based on participation. Your stakes / Total stakes = Payout %.
So if there are 1,000 ETH in our APY pool, and you have 10 ETH. You are 1% of the pool. If the emissions are 5000 EONS, and 70% goes to the APY pool, you get 1% of the 3,500 EONS or 35 EONS for your pool stake.
Liquidity pools operate in the same manner, based on the liquidity token amount instead of ETH. If there are 10,000 UNI EONS-ETH LP tokens in the pool, and you have 100 of them, you receive 1% of the 15% liquidity pool rewards.
The Marketing and Bonus rewards get used for promotions or other marketing incentives. These could include bonuses for specific pools, new user acquisition, and lock time bonuses.
Liquidity Provision Rewards
Users who provide EONS liquidity on the separate networks will receive up to 50% off their pool fees. They will also receive 15% of the Reward Pool distribution.
Example: A 1000 Total UNISWAP LP tokens committed in our LP pool, the daily emissions is 5000. User has 100 LP tokens and receives a discount for their pools (i.e., owed .2 eth before, pays .1 eth) and a daily payout of 5000 * .15 * .10 = 75 EONS.
Calculation: (total emissions * % for lp pool * Users % of lp pool = daily emissions rewards)
iEONS (v2)
In v2 of EONS ecosystem development, we will introduce the iEONS utility and reward token for each network’s EONS Sharepool/staking. For example, a user stakes EONS and receives iEONS as a representation of their contribution. Profits from the on-network pools get paid to iEONS holders. Users can choose to compound their iEONS, claim their rewards, or use their iEONS to stake in a whitelisted partner pool, such as AAVE, Curve, etc.
Governance (v2)
Governance plays a significant role in version 2.0 of the EONS.finance protocol. Token holders of EONS & iEONS receive special voting privileges for protocol development, pool creation, strategy development, and more. Below are the initial proposals planned for governance.
- Vote to establish new and unique farming pools in the EONS ecosystem.
2. Compound your weighted governance voting priority with iEONS.
When users lock their EONS tokens in the designated iEONS pools, they receive a bonded iEONS token, which gets a greater weight in voting. Complete details surrounding the weighted calculations are forthcoming.
3. Yield-bearing strategy development.
Users can vote on yield-bearing strategies put forth by the community. Those who win the voting proposal and whose strategies get implemented in the EONS ecosystem receive a portion of the strategy’s fees in the designed pool(s).
EONS.app (v2)
Note: The EONS mobile and web app will be released in version 2.0 of the EONS ecosystem.
The upcoming EONS mobile and web app provide many utilities for the EONS token while empowering retail and crypto-native users with the banking layer integrations needed to spend crypto in real-time in their day-to-day activities. With the EONS app, users can participate in the DeFi staking and yield farming without the hassle of browser wallets and self custody. Earn rewards by using EONS or joining our DeFi Pools directly from your smartphone.
Rewards & Token Utility
Phase 1
- EONS can act as a funding option for a user’s debit card balances.
2. Users of the EONS debit card can receive rewards payouts in EONS tokens.
3. Signup bonus paid in EONS.
For example, deposit 10k USD, receive $100 in EONS tokens.
4. Users can lock their EONS tokens in the app, in their tier of choice, enabling them to receive a more significant APY % on their savings.
For example, the base offer is 5% APY on USDC, stake 5000 EONS, earn 1% APY more per year.
5. Users can accept their APY Savings product payouts in EONS.
Providing the option for APY savings payouts in the EONS token will facilitate buy pressure on it.
6. Pay monthly account maintenance fees in EONS and receive a discounted account fee rate.
For example, a user gets APY in EONS at a bonus rate; then, they can use the bonus to pay their monthly fee, users can automate the process in their acct settings.
7. Users can pay fees in the app with EONS tokens; receive a discount on noted services.
8. Receive 50% off quick exchange fees when paid with EONS tokens.
Read about EONS on the official blog: https://medium.com/eonsfinance
