Derived Tokenomics Explainer
We are delighted to introduce our tokenomics of the Derived native token, also known as DVDX.
DVDX token use case
The DVDX token is the main token on the Derived platform, and the token has three use cases.
· Staking and minting — with the DVDX token you can mint the Synthetix stable coin USDx. The USDx token is the only platform stable coin that can access all features on the platform. Staking DVDX tokens and minting USDx will allow the platform to operate and maintain liquidity.
· Platform fees — for every transaction there is a small fee. A part of the fee will be distributed to users who stake DVDX. This will help incentivize the platform users even after the staking rewards are over.
· Governance — DVDX token holders will be able to participate in the governance and vote on proposals on the platform.
The DVDX token ecosystem, with all its components, is where the DVDX token is needed to unlock all platform features. The Derived ecosystem will create and maintain enough liquidity to operate.
The DVDX token will be distributed with three different rounds, a seed round, a private round, and an IDO (public).
Total Token Supply: 1,000,000,000
Initial Circulating Supply: 15,350,000 tokens
Initial Market Cap: $960K
The first funding round or the seed round saw a total of 40,000,000 tokens (4%) getting allocated. The private round will see a distribution of 114,000,000 tokens (11.4%). Both the presale rounds were raised by the project in March and May respectively from top VC’s. A total of 3.35 million was raised in both the funding rounds which were participated by over 30 Venture Capital Firms from all around the world.
The Public Sale round was allocated 4,800,000 tokens (0.48%).
The strategic partnerships (foundation) will receive 9.12% or 91,200,000 tokens. The team receives 10% or 10,000,000 tokens. For Advisors and Marketing, 5% is reserved or 50,000,000 tokens. For Liquidity (&MM), 6% is reserved or 60,000,000 tokens. The Ecosystem Development Fund will receive 8% or 80,000,000 tokens. Staking rewards are set at 46% or 460,000,000 tokens.
The token price during the seed round was $0.0125 and the Seed Round is vested over 15 months. For the private round, the token price was set at $0.0250 and Round is vested over 12 months. Both the Seed and the Private Round have 90 days cliff after the initial unlock. This 90 days cliff period without any unlock, has been strategically kept in place to allow the DVDx token to enter organic price discovery. This will help in token redistribution among the community and set up an army of Derived holders at the same time.
The Public sale round (during the IDO), the token price will be $0.0625. The tokens will be 100% vested at TGE. A total of $300k is proposed to be raised from the Public Sale.
All other rounds have different vesting, as described in the graphics below. Market Making and Liquidity tokens will be used for providing liquidity on DEX and by MM as per the requirement from time to time. The team tokens have a 6 month cliff and then vesting over 30 months, translating into a total vesting of 36 months. Similarly, Advisor tokens will have a 90 days cliff and then vesting over 24 months. The Strategic Partnership tokens shall be treated foundation tokens that will be used for partnership or foundation use. Any or all details regarding their use will be shared with the community from time to time. It shall also be under the control of governance and thus directly under control of token holders.
Overall, the Derived Token has been designed keeping the community and long term success of the project in mind. Majority of the tokens will be for community and will be controlled through Governance.
If you have any questions about tokenomics or anything about Derived Finance feel free to ask via our socials. We are always more than happy to hear from this amazing community!
Derived is the Multi-Chain Synthetics Trading Platform that is leveraging the interoperability features of Polkadot to make the platform available across Blockchains. The Derived platform allows leveraged minting (up to 3x) to its platform users. It will also be the first platform that would allow its user unique features like, the ability to create Hybrid Tokens and access to features like Binary Options, Multiple native currency support, 0% Slippage, and Unlimited liquidity among many others.
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