FAIRY Tokenomics

FairySwap is the first Automated Market Maker (AMM) Decentralized Exchange (DEX) built on Findora, a new kind of blockchain that provides on-chain confidentiality and programmable privacy. With Findora’s EVM, FairySwap gives you unbelievably fast cross-chain swaps with other Layer 1 chains like Ethereum and Binance Smart Chain, while minimizing fees and maximizing efficiency.

In FAIRY tokenomics, reducing users’ transaction cost and protecting their transaction privacy, while enabling them to obtain considerable benefits in a fair and just way is one of the advantages of the FairySwap ecosystem.

FairySwap Economic Model and Mining Rules

1）Token Distribution

• Token：FAIRY
• Total amount: 10,000,000
• Distribution breakdown: 97% of FAIRY tokens will be distributed through liquidity mining, 3% of FAIRY tokens will be used for airdrop
• Commission fee distribution: A 0.3% commission fee is charged by the platform, 80% of which is used to buyback platform tokens, and 20% for the technical team to do project maintenance; For private transactions, an extra 0.1% commission fee is charged and transferred to the treasury; for cross-chain private transactions, an extra 0.04% commission fee is charged and transferred to the treasury(some functions wait to be enabled).

2) Genesis Airdrop

–60,000 FAIRY for community airdrop

Starting from March 3, 2022, users who complete tasks in the gleam form will be rewarded with tokens. The campaign would last for 12 days and rewards has been distributed at the end of the campaign(See medium for details)

–240,000 FAIRY for FRA Staking

Users get daily FAIRY rewards according to their staked FRA with APY reaching 1400%+. The earlier you stake, the more rewards you get.

3) Mining Ecosystem

3.1 LP mining

How to get mining permission:

• Funds in LP treasury pools reach 100,000 USDT(The total value of two tokens≥100,000 USDT).
• Commission fees in the pool exceed 100 USDT for three consecutive days

(For example, FAIRY-ABC opens a liquidity pool on FairySwap, with a total fund of 150,000 USDT and a daily commission fee of 130U, 110U and 155U for three consecutive days. FairySwap will open the mining permission of platform token FAIRY for FAIRY-ABC’s LP on the next day. Users can obtain FAIRY by staking FAIRY-ABC LP)

Mining profit calculation:

• 46% of FAIRY tokens will be distributed to LP mining of platform tokens
• All LP pools shall adjust the pool mining ratio according to the commission fee ratio(adjusted daily at early stage)
• Individual token output = individual staked funds/ total staked funds in the pool * daily token output of the pool

The opening pools at the first stage are as follows:

3.2 LP mining

How to get mining permission

• Funds in LP treasury pools reach 200,000 USDT(The total value of two tokens≥100,000 USDT).
• Commission fees in the pool exceed 200 USDT for three consecutive days

(For example, FAIRY-ABC opens a liquidity pool on FairySwap, with a total fund of 250,000 USDT and a daily commission fee of 215U, 200U and 355U for three consecutive days. FairySwap will open the mining permission of platform token FAIRY for FAIRY-ABC’s LP on the next day. Users can obtain FAIRY by staking FAIRY-ABC LP)

Mining profit calculation:

• 32% of FAIRY tokens will be distributed to LP mining of platform tokens
• All LP pools shall adjust the pool mining ratio according to the commission fee ratio(adjusted daily at early stage)
• Individual token output = individual staked funds/ total staked funds in the pool * daily token output of the pool

The opening pools at the first stage are as follows:

Note: FairySwap always adheres to the principle of fairness and justice, when the transaction fee of the LP liquidity pool is lower than the mining standard for several consecutive days, the LP mining block will be removed from the market.

3.3 Single token mining

• 10% FAIRY is allocated to single token mining block
• The mining ratio is based on the number of staking addresses or the amount of funds(adjusted daily at early stage)

Pool A #. staked wallet address: 100,000
Pool B#. staked wallet address: 150,000
Pool C#. staked wallet address: 550,000
Pool D#. staked wallet address: 600,000

Distribution calculation of Mining pool A

• The number of staked addresses of the pool ÷ the sum of the staked addresses of all pools in the single token block × 100% = mining allocation ratio of the pool
• 100,000 ÷ 1,400,000 × 100% ≈ 7%, that is, if each FAIRY mining block produces 3.7 tokens, pool A will receive 3.7 × 10% × 7% = 0.0259 FAIRY tokens.

3.4 Transaction mining

• 12% of total FAIRY is allocated to transactors via transaction mining, where users should participate in specified transaction pair to do transaction mining
• The ratio of transaction mining should be adjusted depending on the commission fee of the pool

Transaction mining produces 12,000 FAIRY per day

The opening pools for transaction mining at the first stage are as follows:

What can the FairySwap tokenomics bring us?

1. Fair and just mechanism to maximize the strength: FairySwap’s mining ecosystem is completely decentralized and does not need to go through the audit of the centralized organization. As long as it conforms to the rules of the algorithm, the mining permission can be opened to obtain more benefits. For the project side, it can obtain higher mining profit for the development and expansion of the project ecosystem and mobilize the enthusiasm of users. For users, they can get considerable daily profit through staking.
2. Encourage users to add liquidity and reduce transaction slippage: the opening of the mining ecosystem will encourage users to inject liquidity, and the increase of liquidity can effectively reduce transaction slippage, improve the competitive strength of the project, and attract more users to participate.
3. Support the Findora ecosystem: As the first DEX on Findora, it can attract more users through its advantages and ecological incentives, and at the same time, generate new ecosystems through the continuous demand of users.