SMT: announcing increased utility and deflationary measures

Published in

Swarm.com

3 min readApr 5, 2023

Swarm is a regulated blockchain platform that brings unique tokenization and trading solutions to the world of traditional finance. It is the first organization in the world to offer digitized US treasury bills and Apple stock via a regulated and decentralized platform.

The $SMT token facilitates efficient payments on the Swarm platform and powers incentive mechanisms, including fee discounts for traders and boosted rewards for liquidity providers.

Today, we announce plans to further increase the utility of SMT, including a future equity conversion, and introduce deflationary measures.

Deflationary measures

Deflationary measures will be implemented from May 01, 2023.

As Swarm builds volume on its platform SMT will become more valuable. Rewards will be allocated according to the total value locked on Swarm, with 25% of rewards being allocated per TVL threshold:

0-$10M
$10M-$100M
$100M-$1Bn
+$1B

Unallocated rewards will be burned each week, reducing the total circulating supply.

Rewards are currently distributed 75% for liquidity providers and 25% for traders. Following the successful launch of digital securities on the Swarm trading platform, rewards will now be distributed as follows:

50% of liquidity providers
25% of traders
25% for stakers.

Increased utility

SMT holders will be given voting powers to choose the public securities Swarm lists on its platform.

SMT holders will be able to vote for their preferred public stocks, bond ETFs and other asset classes that can be traded on Swarm’s regulated DEX. The first of these campaigns is already underway with a healthy level of engagement from the SMT community.

SMT holders will be able to stake SMT against the securities that are listed and will receive a share of rewards. The new category of stakers are SMT holders who lock up their tokens by staking against securities listed on Swarm. Stakers will receive a prorated share of the rewards generated from trading volume.

Equity conversion

Swarm believes in building future financial markets. It has plans for its own security token offering, representing equity in the company.

There will be an option for SMT holders to convert their holdings into tokenized equity via a future STO. SMT will be used as the payment token to do this. Details TBD.

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FAQs

What is SMT utility?

Launched in August 2021, SMT holders get discounts on trading fees and rewards boosts for providing liquidity on Swarm’s regulated blockchain platform.

2. How many vesting periods from the initial sale are left?

Vesting is complete. We are in week 87 (as of 05 April 2023) of providing rewards to liquidity providers on the Swarm platform.

3. How many SMT tokens does the Swarm team have?

No team allocation.

4. What Networks is the Swarm platform available on?

Ethereum and Polygon

5. How can I bridge tokens to Polygon on Swarm?

Use the Polygon bridge: https://wallet.polygon.technology/

6. What is available to trade on Swarm?

Swarm is the first regulated DeFi platform to launch tokenized public stocks, like Apple and Tesla, and US Treasury Bond ETFs. Users of the platform can also trade native crypto assets like Bitcoin and Ether, stablecoins like Dai and USDC, and Liquid Staking tokens across five proof-of-stake networks.

7. Where can I buy SMT?

Uniswap: https://info.uniswap.org/#/pools/0x1becf1ac50f31c3441181563f9d350ddf72a2bfa

Swarm: https://app.swarm.com/

Bitglobal: https:// www.bitglobal.com/en-us/spot/trade?q=SMT-USDT

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FAQ links